Expats’ stay in KSA might be restricted

Updated 05 February 2014
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Expats’ stay in KSA might be restricted

The Labor Ministry is studying new proposals to expand the Nitaqat system in its bid to reduce the number of foreign workers and their dependents and create more jobs for citizens with higher salaries.
The move includes restricting expats’ period of stay in the Kingdom to a maximum of eight years and discouraging them from bringing their families. An expat worker living in the Kingdom with his wife and two children will be considered as two foreign workers under the proposed system.
An expat worker living with his wife will accumulate 1.5 points and will incur a quarter of a point per child.
An expat receiving a salary of SR6,000 and more will be equivalent to 1.5 points in the new system, but professionals whose degrees have been attested by Saudi authorities will be exempted from the salary rule.
Many Saudis and expats have opposed the proposals, saying they would discourage foreign professionals from working in the Kingdom and leave a negative impact on businesses.
“The ministry has floated these proposals for discussion on its website. The move to discourage foreigners to bring their families is not a good idea,” said Ibrahim Badawood, managing director of ALJ Community Initiatives.
Badawood said that the ministry’s plan to consider payment of an SR8,000 monthly salary to a Saudi worker as equal to employing two Saudis could be applied after taking into consideration the worker’s performance and productivity.
“Paying a high salary to a well-trained and hard-working Saudi will be a wise decision to keep him in the company and win his loyalty,” he told Arab News.
Rafeek Younus, vice president and managing director of Saihati Group, said the ministry should avoid decisions that would send a wrong message to businesses and investors.
“The new labor regulations have already affected the profitability of businesses,” he told Arab News. He said the new rules and proposals would discourage Saudis from opening small and medium-sized enterprises.
A draft law published on the ministry’s portal, “Together,” said a Saudi worker who earns SR4,000 will account for a full national employee, while those who receive SR2,000 will be treated as half a national employee in the Nitaqat system. A Saudi who receives SR8,000 or more will be counted as two national workers in the system.
Explaining the proposal that restricts the stay of foreign workers, the ministry said an expat who completed four years in the lunar calendar will count for 1.5 points in the Nitaqat system and that this will be calculated from the fifth year after receiving the work permit issued by the ministry.
Those who have completed five years will earn two points, while those working for six years will earn two-and-a-half points and those who have completed seven years will earn three points at the start of eighth year after receiving their work permits. According to Article Four of the new law, three points are the maximum a foreign worker can earn. The law will not apply to nationals who cannot be deported from the country, like Palestinians.
The new law was proposed in the wake of a study that showed unskilled workers staying more years (an average of 7.7 years) than other workers, while expats generally spend an average of 6.9 years.
In a related development, the ministry said it is studying prospects of including part-time Saudi employees and summer-time student trainees in private firms within the Nitaqat system, adding that it would boost the nationalization of jobs.


Saudi crown prince receives Pakistan’s highest civilian award

Updated 20 min 11 sec ago
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Saudi crown prince receives Pakistan’s highest civilian award

  • Prince Mohammed “honored” to meet the president and receive the award
  • Pakistan’s President Arif Alvi Pakistan was proud of its relations with Saudi Arabia

ISLAMABAD: Pakistan’s President Arif Alvi handed the prestigious Nishan-e-Pakistan (Order of Pakistan) award on Saudi Arabia's Crown Prince Mohammed bin Salman on Monday

The award is a state-organized civilian honor which recognizes achievements for Pakistan or an outstanding service for one’s own country.

On receiving the award at President House in Islamabad, Prince Mohammed said he was “honored” to meet the president and receive the highest medal of the Republic.”

“The brotherly relations between the Kingdom of Saudi Arabia and Pakistan are based on the principle of Islamic solidarity, and they are a model for other nations,” the crown prince said.

“The Kingdom was one of the first countries to recognize Pakistan immediately after its declaration of independence, as most of the Kingdom's kings have visited Pakistan and most of Pakistan's leaders have visited the Kingdom.”

He said more than two million Pakistanis are working in the Kingdom and “contribute their share in the development project in the Kingdom and Pakistan.”

Alvi said Pakistan was proud of its relations with Saudi Arabia, and that the two countries were bound by “deep-rooted brotherly relations based on common religious and cultural values.”

Prime Minister Imran Khan, his cabinet members, the army chief, General Qamar Javed Bajwa, and several other high-profile officials and dignitaries from both countries were also present on the occasion.

The crown prince arrived in Islamabad on Sunday as part of an official two-day visit to the country on the invitation of the premier.

The two countries signed agreements worth more than $20bn at a ceremony on Sunday evening.

Pakistan and Saudi Arabia enjoy deep-rooted defense ties, with the armed forces of both the countries conducting joint exercises in Pakistan and the Kingdom on a regular basis.

On Monday, the crown prince also met with Chairman Senate Sadiq Sanjrani. Later, he was accompanied to the Presidency by Prime Minister Khan in a traditional horse-drawn carriage that was surrounded by a contingent of President’s Bodyguards.