JEDDAH, 30 July 2007 — Demands by the Ministry of Transportation to completely Saudize the taxi industry have caused many taxi companies to become bankrupt and have threatened the well-being of others.

“The decision to 100 percent Saudize the taxi sector, which pays drivers a salary of SR2,000, was made without comprehending the outcome. A lot of companies have become bankrupt because of this regulation,” said Abdul Hadi Al-Qahtani, head of the General Taxi Committee at the Jeddah Chamber of Commerce and Industry (JCCI).

According to Al-Qahtani, many Saudis are not attracted to work for taxi companies, which are being forced by the Ministry of Transportation to employ Saudis and avoid expatriates. He added that taxi companies are therefore finding it difficult to profitably operate with a small fleet of drivers.

The Kingdom’s current taxi system allows Saudis to own their own taxis and be self-employed. Acquiring loans to purchase cars as taxis is also made easier for Saudis, a system that allows many people to prefer working for themselves and pocket everything that they earn. On the other hand, people that work for taxi companies are paid small monthly salaries and are required to clock on and off daily.

With the support of JCCI Chairman Saleh Al-Turki and the cooperation of the Ministry of Labor, the Ministry of Transportation, the Human Resources Development Fund and the National Saudi Joint Training, the General Taxi Committee has been trying to employ Saudis to work for taxi companies. So far only six Saudis have applied to work for taxi companies with the Labor Office providing another 28 Saudis.

“That number of applicants is not enough to completely Saudize the taxi sector. Why would Saudis want to be committed to a company and work full-time and have their attendance checked? The other system of working freelance allows them to work for themselves,” he said.

Al-Qahtani believes that the percentage of Saudization in the taxi industry needs to be eased.

http://www.arabnews.com/?page=1&section=0&article=99045&d=29&m=7&y=2007&pix=kingdom.jpg&category=Kingdom