KSA nationalisation won’t disrupt channel operations

KSA channel stakeholders prepared in advance for Nitaqat regulations

Tags: Al-Jammaz Distribution (www.aljammaz.com)Aptec DistributionFVC - First Video Communications IncorporationIDC Middle East and AfricaIngram Micro (http://www.ingrammicro.com/)
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KSA nationalisation won’t disrupt channel operations Hamza says service providers that thrived on sub-contracting IT personnel have been impacted the most.
By  Manda Banda Published  January 26, 2014

Saudi Arabia's nationalisation programme will not disrupt channel operations in the Kingdom, Channel Middle East has been told.

Channel stakeholders that participated in a vox pop interview, indicated that the Nitaqat regulations enforcement will not impact the day-to-day operations of the Saudi Arabia channel as most players in the Kingdom had prepared for these rules when they were initially unveiled three years ago.

A recent IDC research revealed that Saudi Arabia's nationalisation programme is likely to disrupt IT service providers in the Kingdom in the short term. The analyst company also warned that the Nitaqat regulations, which require Saudi companies to hire a certain percentage of local staff, will result in a shortage of skilled staff for service providers that have traditionally relied on expatriate IT professionals.

Dr Ali Baghdadi, president at Ingram Micro's Aptec, said having a quota of Saudi nationals in a company has been the case for several years. Baghdadi explained that the Saudi nationalisation programme has been in place for years and the recent changes aim to encourage the hiring of young graduates, both male and female.

"Saudi Arabia has good technical universities and our newly established training centre should provide the opportunities for needed technical certifications. Unemployment among Saudi males is over 10% and among females is over 40%," he said.

Baghdadi explained that Aptec has a mixture of Saudi nationals in management, accounting, HR and sales. "We also have a section for Saudi females and have recently established a new training centre in Riyadh, which will focus on providing training for technical certifications," he added.

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