Business & Money | Saturday 7 March, 2015 12:34 am |

Wary of labor raids, several taxi drivers have stopped working. This development has led to a taxi shortage. Also, many taxi drivers refuse to ferry people to places that require passing security checkpoints.

Many taxi drivers have not transferred their sponsorships to their respective employers. However, some think they have no immediate option but to continue to work until they find new jobs.

Members of the transportation committee at Jeddah Chamber of Commerce and Industry (JCCI) said several taxi establishments have been classified in red zone under Nitaqat. These companies are thus unable to transfer the expatriate taxi drivers’ sponsorship.
The total number of taxi drivers in the Kingdom is more than 50,000, with 65 percent of them expats.
Several taxi companies are found to have failed to hire Saudis as they prefer to work with their own taxi cars.
“There are taxi companies which corrected their status, while others have failed to raise their Saudization rate; 12 percent Saudization is the minimum requirement in this sector.
Amjad Abdul Al-Haq, a Pakistani cabbie in Jeddah, has decided to stay home as a number of security checkpoints have been set up in Jeddah. He is looking for other jobs.
He told Arab News that he wouldn’t continue as a taxi driver if the check posts continue for a long time.

“All taxi service establishments must transfer their expatriate staff’s sponsorship for avoiding huge fines. The Ministry of Labor helped these companies by reducing the Saudization rate and there is no excuse for them now; they will be fined by the Ministry of Labor,” Saeed Al-Zahrani, a member of transportation committee at JCCI, told Arab News.

Al-Zahrani said Saudization is the main challenge to several taxi service companies as many Saudis refuse to work in this sector. Some taxi establishments have, however, hired Saudis for administration, accountancy and supervisory jobs.