Actual Saudization of cabbie sector never exceeded one percent - Arab News

As posted earlier, Saudi Arabia will not reach 100% Saudization of taxi drivers by the target date. Now comes more details:

The replacement of foreign taxi drivers with Saudis was originally planned to have been completed by the beginning of 2005. Minister of Labor Ghazi Al-Gosaibi has now admitted the plan faltered because of the “irregularities and twisted tactics” that accompanied its enforcement. He said Saudization did not exceed 8 percent according to official figures, while in reality the actual figure is no more than 1 percent.
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Irregularities he cited included some taxi companies registering cars with their licenses showing the drivers were Saudis while in fact the cars remained grounded and never used.

Yes, if a way to beat the system exists, economic incentives will always find it.

Saudi cab drivers are now unhappy:

The drivers complained of the losses they said they continued to incur as a result of the unfair competition from expatriate drivers.

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The drivers said the ministry’s decision to postpone the replacement of foreign drivers came as a shock to them. They said the continued presence of large numbers of foreign drivers would only cause them more losses. They described the ministry’s move as a reward for taxi companies which they accused of dragging their feet on Saudization.

Unfair competition -- or just competition? Just competition. Losses -- using economic costs? Perhaps so, since Saudis are not willing to accept the low pay that non-Saudis are accepting. One thing is correct about the current Saudi drivers' analysis of the economics. They have been harmed by the ministry's delay. The fewer ex pat drivers there are, the fewer low-cost producers there will be, the higher the incomes of Saudi drivers. And the more attractive the business becomes to other Saudis.

As the earlier post (below) shows, though, customers prefer non Saudi drivers. As long as that is true they will have more time without a passenger than ex pat drivers. Ouch.