'Saudization' continues: The Saudi Arabian authorities launched a new campaign recently to encourage the employment of young residents in the private sector in order to reduce the number of foreign workers in the country.
 
The state-owned Human Resources Development Fund announced early last week that any private company employing a Saudi worker will receive 50% of his or her salary in advance for the first year. Up till now, the Fund would transfer 50% of the yearly salary at the end of the first year.
 
The new incentive is being promoted in a wide-scale advertising campaign across the kingdom.
 
Hisham Lanjawi, the director-general of the Development Fund's Mecca region declared that the state would also finance 75% of the cost of the new workers' training. During the training period, the Saudi employee will receive a monthly salary of 1,500 riyal (about $400).
 
The "Saudization" program has been deemed a failure in the work market so far, with the country's young residents favoring jobs in the public sector over the private sector.
 
One of the points of criticism voiced against the plan is that the positions offered to the Saudis usually come with a low salary (salesclerks, construction workers and waiters) and are considered unrespectable in the Saudi society.
 
Doron Peskin is head of research at Info-Prod Research (Middle East) Ltd

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