JEDDAH, 25 January 2007 — Saudi authorities must issue at least 1.2 million recruitment visas to meet the requirements of contractors in order to carry out government projects alone, according to Abdullah ibn Hamad Al-Ammar, chairman of the National Committee for Contractors.
He estimated the total value of new projects including those of Saudi Basic Industries Corp and Saudi Aramco at SR282 billion. “To implement these projects we need at least 1.2 million additional visas to recruit engineers, skilled labor and ordinary workers,” he told Al-Watan daily.
Ammar emphasized the importance of implementing new projects in order to create more jobs for Saudis and strengthen the economy. “One thing everybody should know that there will not be any employment without implementing development and service projects,” he said.
Ammar’s comments follow the launch of four mega economic cities in Rabigh, Hail, Madinah and Jizan where new projects worth more than SR300 billion will be implemented. The government has to relax recruitment laws to supply skilled foreign labor required by the new projects.
Ammar urged authorities to do more to strengthen the national contracting sector. “A strong contracting sector is a must for a strong economy in order to implement its development projects. No country can depend fully on foreign contractors in any situation. International relations are bound to change. So, strengthening national contractors is the best option we have. Of course, we should make use of foreign expertise but our aim should be a strong national contracting sector,” he explained.
Ammar praised the recent decisions of the Labor Ministry to reduce Saudization rate for government contractors from 10 percent to five percent and increase the validity of labor visas from one to two years. “This will solve at least 60 percent of problems faced by contractors,” he said.
“Although these decisions came late, they will certainly help the contractors,” he said. “These are steps in the right direction.”
Ammar hoped that Labor Minister Dr. Ghazi Al-Gosaibi would approve other demands presented by his committee during a meeting last year. “The setting up of three panels to solve problems facing contractors reflects government’s sincere desire to strengthen the sector,” he said, hoping that the panels would make constructive and fruitful proposals.
He stressed the importance of transforming the national committee for contractors into an authority, saying such a measure was essential to strengthen the sector. “This is a large sector that handles billions of riyals and it requires an authority to provide the best representation.”
Referring to the Cabinet decision that allows foreign contractors to work in the Kingdom, Ammar said, “Instead of bringing foreign contractors we should give priority to strengthening Saudi contractors by removing the obstacles they face.”
Saudi contractors have responded positively to the call of Custodian of the Two Holy Mosques King Abdullah to merge with one another to strengthen their position in the face of foreign competition.
