Saudi schools close after minimum pay rule

Anon Friday, 1 February 2013 10:38 AM - dubai

This is about controlling the rising tide of discontent and growing resentment in KSA.

Thamir Ghaslan Thursday, 31 January 2013 9:05 AM - Saudi Arabia

13 private schools shut down out of a total 3,375 and the comments make it seem like a big deal! This is below 1% of total private schools!

Survival of the fittest! All the weak performing establishments will be flushed out of the economy.

Saudization is here to stay and is going to get tougher, and expats can whine or be negative all they want.

I'm sure the government knows what its doing unlike expats who come from broken governments.

Ahsan Al Ansari Thursday, 31 January 2013 2:54 PM - United Kingdom

Intoduction of minimum wage with back date sounds stupid!

Nothing wrong with Saudization, but, when these establishments are "flushed out", along with Expat teachers, Saudi teachers would be losing there jobs as well. Has the Saudi govt thought about this?

Mickey rosenthal Thursday, 31 January 2013 9:04 AM - USA

This is nothing but Saudi arrogance. This has nothing to do with business. I believe in fair pay, but that also needs to include expat teachers since they do most of the work. Most of the Saudi teachers only teach one class and get paid more than their expat counterpart who teach sometimes 2 or 3 different subject classes. No wonder people leave Saudi and a lot of these Arab countries. The rules and regulations are not only ridiculous, they change like the weather.

Vicky Thursday, 31 January 2013 9:04 AM - Canada

It is important to think sensibly about the impacts and alternatives beore a decision is executed. Taking Procan's view further, I can say that Canada really goes through the public debate and due diligence before any decision. Minimum wage is well supported by the overall economic and taxation policy because it has cascading effect on various layers, as money tends to circulate rather than getting lost. I hope KSA learns to take a holistic view rather than appeasing to short term, narrow objectives.

Telcoguy Wednesday, 30 January 2013 1:45 PM - UAE

Yes. A perfect example of the risks of doing business here, and why you need an exit strategy from day 1
My only question is this forced closure was the desired outcome (forcing a consolidation in a fragmented market or maybe making room for a large player) or it was simply something that nobody considered when making this rule by people who do not fully understand the consequences of their decisions (what could go wrong with increasing salaries like this? Everybody will be happy!)
Education seems to be getting lot of airtime in AB I wonder what is going on

Tarek Wednesday, 30 January 2013 10:31 AM - Qatar

A perfect example of the risks of doing business in such countries and the introduction of stupid and unfair regulation that can only create a lose- lose situation! Introducing the minimum wage may be ok, but why to make it backdated ?! This is a burden that no business in the world can take !

worldnomad Wednesday, 30 January 2013 10:28 AM - Saudi Arabia

Tip of the iceburg. As Saudi ramps up its nationalization plans the populous must be prepared for higher prices in all areas. Fine to say get rid of expats and relplace with locals, but are the people prepared for the jump in prices as expats are replaced? Same thing happens in Canada every time the minimum wage is raised. The constituency agree that this is a good thing until it hits the pocket book. People need to think long term and adjust their standard of living to fit in with the new reality.

procan Wednesday, 30 January 2013 3:55 PM - canada

worldnomad as regards Canadian numbers.Wrong Sir comparing Canada and Saudi Arabia is well no comparison we have 1.4 percent inflation and prime lending rate of 1 % one of the premier banking system and economies in the world. Increasing minimum wages for the bottom of the wage scale is a good thing and make economy stronger.We are one of the few countries on the plannet that has a firm grip on long term reality.