The Ministry of Labor has agreed in principle to establish recruitment companies to replace the existing recruitment offices, but their establishment is still awaiting final approval. “The granting of work visas to these companies depends largely on their effectiveness in providing services to the foreign manpower, whether they are housemaids or workers in the public and private sectors,” he said.

Al-Haqbani said the companies will be granted work visas to import foreign manpower to hire them out to interested public and private companies and establishments and will be able to act on behalf of individuals needing workers.

Al-Haqbani expected the companies to start trading a year after obtaining the licenses. “The ministry has the right to extend this period by six months if approved by the minister,” he said.

The deputy minister said the regulations to establish recruitment companies stipulated that the founders of each company should include at least five existing recruitment offices and that their paid up capital should not be less than SR50 million.

“Companies wishing to import foreign workers for hiring them out and to act as an agent on behalf of individuals wishing to recruit housemaids should each have a paid up capital of SR100 million,” he added.

Al-Haqbani said the company would be able to obtain 1,000 work visas for each recruitment office participating in its establishment.

“Once a company is set up, the licenses of the founding recruitment offices will be automatically cancelled,” he said.

He added that the company's renewable license will be valid for 10 years.

“Once they are finally established, the recruitment companies will be the ministry’s tools to control the recruitment sector and to organize the labor market. The companies will only import foreign manpower that are educationally and vocationally qualified,” he said.

The deputy minister said the recruitment companies should obtain their work licenses with 60 days of their final establishment approval.