Baqala closure ‘will help economy’

JEDDAH: A proposal by a Shoura Council member to shut down small groceries (baqalas) has been welcomed by experts as a step that will boost Saudization, reduce remittances and help the Kingdom’s economy. However, owners of small groceries have criticized the move as an attempt to favor large business establishments.
“The move would help large grocery shops and supermarkets to employ more Saudis, which in turn would reflect positively on nationalization efforts,” Naif Al-Sharif, head of the Food Products Committee at the Jeddah Chamber of Commerce and Industry (JCCI), was quoted as saying by local media on Saturday. 
“It would also help eliminate “tasattur” (cover-up business), especially as the number of small groceries in the Kingdom has grown to 90 percent, with 75 percent of employees being Indian expats.”
Rejecting claims of small grocery business owners that the move aims to support large companies and supermarkets, Al-Sharif said anyone has the right to open a market that is compliant with space, product and safety requirements.
Mohammed Alawi, the head of the Commercial Centers Committee at the JCCI, was quoted as saying that the food products sector in the Kingdom is a SR170 billion business, and thus accounts for a large portion of the sector in the Gulf, which is valued at SR270 billion.
Economist Farouk Al-Khatib said the move would also help reduce the remittances sent abroad by expats working in the sector and boost the Saudi economy.
However, owners of small groceries are vehemently opposing the proposal, arguing that their closure would eliminate their sources of income. Some citizens have also argued that the small groceries in the neighborhoods offer numerous benefits, including easy access to products. The Labor Ministry is studying the proposal and will go ahead if it is found to be reasonable, sources revealed.
Meanwhile, an agreement between the Labor Ministry and officials in Djibouti and Niger to bring domestic workers from these countries indicates the desire of the three sides to reduce the number of violating and ineligible employees entering the Kingdom, a local newspaper reported.