Dear Retailers
We are experiencing unprecedented retail conditions across the world in the wake of the current pandemic. With unemployment at all time high across the world I am sure nationalization is a burning topic in many boardrooms and cabinet meetings. My understanding and finding while working in Saudi Arabia related to nationalization were quite profound.
The common believe and understanding was that unemployment in Saudi around 2017 was 14%. The Crown Prince instructed all Retailers to take their workforce to 70% nationals / 30% Expats before September of 2018. Retail had 6 months to comply and the task was relentless, but retail did it as that was the new law.
Challenges that were faced, and still are were recruiting, training and retention. Easier said then done in a country where the average age is 25 with estimated population of 32 million people. The bigger challenge was the for most Saudi’s it would be their first job, first time working and first exposure to retail. Long hours and hard work, engaging with customers daily.
The result was unemployment was brought down to 7% redeploying and repatriating about 2 million expats creating by default about 2 million jobs exclusively for Saudi nationals. There were and will always be challenges, the division where I worked is currently 96% Nationalized with great internal succession and retail pride.
The question is … will your company or country nationalize ?
Be safe, happy trading and regards
Charles Walters