GF
Saudi Arabia’s financial sector has been enjoying something of an image boost this year, having proved more resilient than other areas of the GCC. However, despite managing to lure new international investment banks, it still struggles to both produce a pipeline of local talent and attract it from elsewhere.
Speakers at the Reuters Middle East Investment Summit in Riyadh attacked the Saudi education system for failing to produce an adequate supply of local talent for the burgeoning financial services industry, which means a reliance on expat workers for senior positions.
“There is a huge demand for talent in this region that has come up over night and it has been difficult to fill that locally,” said Paul Gamble, head of research at Riyadh’s Jadwa Investment.
Still, despite the raft of redundancies in western financial centres this year, few bankers seem attracted to Saudi’s conservative society or the prospect of spending their spare time in an expat compound.
“Whoever is a candidate, and we interviewed in Dubai or Saudi…will choose Dubai,” added Omar Aljaroudi, chief executive of the Saudi unit of Dubai-based investment bank Shuaa Capital.
Within the last 18 months, Barclays, Credit Suisse, Calyon, Nomura, Sociéte Générale and UBS have all gained licences to operate in the kingdom. While they likely simply transfer staff internally for senior roles, strict Saudisation rules – which dictate that 30% of employees in the private sector must be locals – will prove a stumbling block to future expansion plans.
But Gamble insists the Saudi government is taking steps to develop the local workforce.
“The government is taking steps to improve the education system and is sending students abroad. There are skill shortages in the financial sector at the moment but things should improve,” he said.
Beyond changing the education system, they need to change the attitude of the people. Expats are not in Saudi to serve their Saudi owners/masters, they are there to earn an honest living. An employed Saudi shouldnt be taken for granted nor should it be considered a right. They need to know that to have a shot at a job, they need to prove they are equally capable and committed.
@ shuja : ..which is true for all people from the Middle East
The problem is the strictness in Saudi, they just treat expats like slaves. I myself was there for few months but due to job retrenchment had to be back to India.
Before 2 weeks of leaving the country itself they took back my residential permit (iqama) card & gave me just its photocopy duly attested by the company that this person is going on exit soon. But I had to go through the traumatic experience of spending 1 day & 1 night in a saudi jail.
Believe me, I tried explaining the cops about my situation but the stumbling block was that they don’t understand english…!!
Still I am thankful to Lord that I was set free the next day after people came from my company. But the condition in which they keep inmates was horrible, they just kept on filling a hall which was packed till the brim, there was no space even for standing but it din’t matter them.
They confiscated our phones so there was no connection with outside world, luckily I informed my friends about the incident & because of their help only I came out. But there were still many Indians, Bangladeshis, Pakistanis, Iraqis, Yemenis & other nationals suffering there for many months. Their sponsors’ just don’t care abo