Nitaqat: 200,000 firms closed down

Updated 05 August 2014
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Nitaqat: 200,000 firms closed down

More than 200,000 private firms have been closed down in a single year for failing to meet the conditions set within the Nitaqat nationalization program aimed at reducing unemployment among Saudis.
There were around 1.8 million private firms in 2013, compared with almost 2 million firms before the program was put into effect, said a Labor Ministry report.
Badr Almotawa, a Saudi business analyst, said most of these firms left the market because of the government’s campaign against illegal cover-up businesses and residency and labor law violators.
“As many as 36,951 companies remain in red and yellow categories of the Nitaqat, as they failed to employ an adequate number of Saudis,” Almotawa told Arab News.
More than half a million expats work in red and yellow-zoned companies, in which Saudis only account for eight percent of the total workforce.
Similarly, there were more than 17,000 companies classified in the red category of the nationalization scheme, including 16,498 small-sized firms, 786 medium-sized firms, 29 big companies and one gigantic establishment.
Among the 19,637 companies in the yellow category, meanwhile, 16,654 are small-sized enterprises, 2,833 medium-sized, 146 are big firms and four are gigantic companies, the ministry said.
Almotawa urged Saudis, especially the less educated, to make use of the Kingdom’s investment climate and start up small and medium-sized firms.
“Many Saudis are reluctant to do business because of a lack of awareness and experience,” he pointed out. He also urged the Human Resource Development Fund to establish training centers for Saudis.
“Saudi Arabia is the best market for business since there are no taxes,” Almotawa said, urging commercial banks and various public and private agencies to support Saudis to open SMEs and small-scale industries.
“Private firms must give a salary of at least SR6,000 to attract Saudis,” he said.


Formula E brings racing-themed roadshow to Jeddah

Updated 17 November 2018
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Formula E brings racing-themed roadshow to Jeddah

  • The Road to Ad Diriyah will give Jeddah a taste of the historical three-day festival of racing, live music, culture and entertainment that is set to take place in Ad Diriyah
  • More than 6,000 motorsport fans stormed to Khobar last week for the road show

DUBAI: After a successful run in Khobar last week, Road to Ad Diriyah, a racing-themed entertainment event, is set to visit Jeddah as the country gears up for all-electric street car-racing activities in December.

More than 6,000 motorsport fans stormed to Khobar last week for the road show, which featured racing-themed activities heralding the upcoming 2018 Saudia Ad Diriyah E-Prix on Dec. 13 to 15, a first-of-its-kind sporting event in the Middle East.

The Jeddah edition opens on Nov. 22, with most of the activities from the previous one, as well as an e-sports competition whose winner will take home SAR 1,000,000.

The ABB FIA Formula E Road to Ad Diriyah e-sports championship allows fans to command a SAR 250,000 professional racing simulator. The 16 best participants will then be invited to Ad Diriyah in December for the grand finals.

The Road to Ad Diriyah will give Jeddah a taste of what the historical three-day festival of racing, live music, culture and entertainment that is set to take place in Ad Diriyah will be like.

Bavaria Zaman, who visited the Khobar show with husband Rashid Khan and kids Nawal, Daiin and Nashin, said: "I think it's fantastic. The kids are running around and having fun."

The upcoming E-Prix is the first in a 10-year partnership between ABB FIA Formula E and the General Sports Authority of Saudi Arabia (GSA) and the Saudi Arabian Motor Federation (SAMF).