Non-Saudis barred from selling or marketing insurance products

  • Insurance companies ordered to reach 100% Saudisation by Feb 1, 2018
  • The third phase of feminisation of all shops selling women’s accessories to start this month
World

RIYADH – The Saudi Arabian Monetary Agency (SAMA) has ordered insurance companies in the Kingdom only to employ Saudi citizens in marketing roles related to the sale of their products, according to reports.

Non-Saudis are prohibited from selling or marketing insurance products to individuals irrespective of their job titles or contractual relations with insurance companies or intermediary companies or insurance agencies, a statement from the agency said on Sunday.

According to the statement quoted by the Middle East Monitor, companies must complete the transition to a full Saudi workforce by no later than early February next year. All management positions at all levels must also be Saudi nationals.

The unemployment rate among Saudi citizens increased from 12.7 percent during the first quarter of 2017 to 12.8 percent at the end of the second quarter. The slight rise coincided with government austerity measures as a result of falling oil prices, the Kingdom’s main source of income.

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For nearly three years, Saudi Arabia has accelerated the pace of the “Saudisation” of jobs in many sectors, with the aim of reducing the unemployment rate among its citizens.

Earlier this year in February, SAMA made it compulsory on insurance companies to Saudize all jobs related to vehicles claims management, customer service, dealing with complaints in all branches of insurance companies.

FEMINISATION OF SHOPS

Also, the Ministry of Labor and Social Development is going to launch on Oct. 21 the third phase of the feminization of all shops selling women’s accessories.

The third phase includes shops and stalls selling ladies perfumes, shoes, bags, stockings, readymade garments, and textiles.

Ministry’s spokesman Khlaid Aba Al-Khail said the decision also targets small shops that sell wedding dresses, formal wear, abayas, robes, mother care requirements, and pharmacies in malls selling cosmetics.