Sharif runs three car maintenance workshops in Khudriya, Dammam. These workshops are in the name of a Saudi, who in turn receives a monthly amount of SR10,000 from Sharif, who is the “real owner,” according to Al-Riyadh Arabic newspaper.

“I pay the rent of the buildings where the workshops are in addition to the utility bills. I also meet all other expenses, including wages and fees for the renewal of their residence permits (iqamas) and exit and re-entry visas. The sponsor only has to sign the concerned documents,” Sharif said.

When an Al-Riyadh reporter approached Sharif disguised as a Saudi citizen wanting to sell a work visa for a private driver, he expressed interest in buying it. After negotiations, Sharif agreed to buy the visa for SR12,000.

Sharif’s story is a typical example of what is happening in the Kingdom’s employment market. Many foreigners are engaged in these coverup businesses and they hire workers mainly from their countries after colluding with some citizens, who find it a lucrative business. These Saudis manage to secure work visas and then sell them to foreigners for huge amounts. They also allow foreigners to start commercial ventures in theirs name in exchange for a fixed monthly fee.

Muhammad Safiyuddin, an Indian, runs a coverup business. “There are more than 25 workers under my ‘sponsorship.’ I keep the workers’ passports in my custody. I pay SR250 per worker to the sponsor every month,” he said while noting that these foreigners are allowed to go out and do any type of work they can find, such as vehicle maintenance, selling fruit and vegetables, and working at cafeterias and grocery stores.

The illegal visa trade and coverup businesses have produced a negative impact on both the Kingdom’s economy and efforts to address the unemployment problem.

According to experts, there are about 3 million foreigners who are actually not needed in the labor market. This situation has prompted the Ministry of Labor to take strict measures to put an end to this phenomenon and implement Saudization vigorously. One major objective of the ministry’s newly launched Nitaqat program is to reorganize the employment market and put an end to coverup businesses and the visa black market.

Hateb Al-Anzi, spokesman of the ministry, said the provision to restrict foreigners’ stay in the Kingdom to six years would be applicable to those who work at firms that come under the red and yellow categories. It has also been pointed out that implementation of this directive would boost Saudization as well as crackdown on foreigners working for ghost companies.

Some businessmen in the Eastern Province claimed that the Nitaqat program has opened new vistas of job opportunities for young Saudis. These young men can enter the Kingdom’s lucrative service sector, which is controlled overwhelmingly by illegal foreigners.

Abdul Rahman bin Rashid Al-Rashid, chairman of the Chamber of Commerce and Industry in the Eastern Province, said the ministry’s decision to restrict the stay of foreigners if they were in the red or yellow bands would deal a severe blow to coverup businesses.

He also called on the authorities to rigorously Saudize firms in those sectors where coverup activities are rampant.

Abdul Razaq Al-Olyo, another prominent businessman, said effective implementation of Nitaqat would help put an end to coverup businesses and the visa black market in the long run. He called for forcing all companies and firms as well as various sectors to strictly implement the program.

Another businessman, Abdul Rahman Al-Barak, demanded that there should be strict monitoring of foreigners’ remittances.

“No foreigner should be allowed to transfer any money that is higher than their monthly salary. Such a step would help crack down on coverup businesses,” he added.