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.


Jeddah to host first global village in Saudi Arabia

The marketing plan of the village has been put in place to target private and international schools to ensure high attendance. (Shutterstock)
Updated 21 January 2019
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Jeddah to host first global village in Saudi Arabia

  • “Participants from some 50 countries have so far confirmed their interest in taking part in the festival, which will be held on an area of more than 45,000 square meters,” Suzan Eskander said

JEDDAH: For the first time in Saudi Arabia, Jeddah will host a multicultural festival that takes visitors on a virtual tour of 50 countries.
The global village will be set up inside Atallah Happy Land Park along the city’s famous waterfront every day from 5 p.m. to midnight between Feb. 28 and March 29.
The event is one of many aiming to enhance tourism, as well as the local economy.
Suzan Eskander, director-general of International Image, the organizing company, told Arab News that the village is expected to attract 1 million visitors.
“Participants from some 50 countries have so far confirmed their interest in taking part in the festival, which will be held on an area of more than 45,000 square meters,” she said.
“There will be pavilions for participants from five Gulf Cooperation Council states, 10 Arab countries, 18 African countries, 10 European countries and four countries from the Americas.”
She added that folkloric dances would be performed by bands from each country.
“Performers will be dressed in traditional costumes,” she said. “Visitors can also enjoy dishes and traditional products from different countries.”
Eskander also said paintings portraying heritage and culture in the different countries would be on display.
“In addition, we are hopeful that the children’s zone will wow young visitors,” she said. “Little guests can develop their skills in drawing and games, as well as play zones.”
Eskander said the village was timed to coincide with the city’s good weather season, adding that a marketing plan has been put in place to target private and international schools to ensure high attendance. Eskander expressed her gratitude to the General Entertainment Authority for their continued support and cooperation.
“They have not only provided us instructions for obtaining the festival’s license, but are still following up to ensure that everything is going smoothly,” she said.