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New Job Promotion Policy Adopted for Saudi Nationals

Saudi Arabia : 12 May 2011

After years of trying unsuccessfully to get more Saudi nationals working in the Kingdom’s private sector, the Labour Ministry is adopting new policies to replace expat workers in private industry with Saudis.

The fresh measures will categorize companies based on how far nationalisation has been incorporated into their workforce and will penalize those firms that are not meeting the nationalisation targets, according to the Saudi Minister of Labour Adel Faqih.

The system will have three categories – green, yellow, and red. These coloured tiers will replace the past regulations that forced each firm to replace 5 percent of the foreign workforce with Saudi nationals each year.

Businesses that have a higher rate of employment for Saudis will be in the green tier, while those firms with lower rates will be in the yellow tier and those with the least Saudi workers will be in the red category. The Labour Minister stated that the regulations of the past were not positive and failed to provide encouragement to private businesses that wanted to hire more nationals.

Faqih noted that ministry field crews would increase efforts to make certain that businesses within the private sector are adhering to the ministry standards in terms of Saudisation.

The Labour Minister stated that firms within the green category will enjoy incentives and rewards, whereas those in the red category will have only a limited time to adhere to guidelines before the Ministry will prevent the firm from obtaining work visa renewals for expat workers. Faqih also noted that more incentives for the green tier businesses will be available on the ministry’s website beginning on June 11.

Paul Holdsworth, Staff Writer, Gulf Jobs Market News
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