Speaking at a ceremony held in Jeddah to distribute annual Okaz prizes, Fakeih said his ministry wanted to introduce innovative solutions to create suitable job opportunities for young Saudi men and women to end unemployment.

The minister referred to economic, social and security problems caused by unemployment. “We have to create a competitive atmosphere for Saudi youths to excel in the job market as they deserve more to get jobs and training,” he pointed out.

Fakeih said his ministry and its subsidiary organizations have been working to train and develop the capabilities of Saudis in order for them to play an important role in boosting the Kingdom’s development.

Speaking about Nitaqat program, the minister said it was aimed at increasing the rate of Saudization of jobs in the private sector.

“We cannot consider Nitaqat as the comprehensive solution for unemployment. However, we can say that it is one of the ministry’s major initiatives to solve the problem,” he said.

“Nitaqat takes into consideration the mutual benefits of both jobseekers and the business sector,” Fakeih said, while referring to the incentives offered by the program to companies in green and premium categories (meaning they have met their Saudization targets).

He commended Saudi companies that have achieved high rates of Saudization. He also urged other companies to employ more Saudi workers. “Saudi jobseekers should make use of the opportunities offered by the private and public sectors,” he added.

According to Ibrahim Al-Moaiqel, director general of the Human Resources Development Fund (HRDF), Nitaqat was instrumental in generating more than 300,000 job opportunities in the private sector.

Under the Nitaqat program, companies have been labeled green, yellow, red and premium depending on the level of Saudization they have achieved.

The Ministry of Labor started implementing the first phase of the program on June 11, 2011 through classification of the companies and giving them a three-month period for improving their Saudization status. Companies meeting their required Saudization quotas started enjoying a number of special benefits when the second phase of the program came into force on Sept. 10. Punitive measures against companies classified in the red category were effective Nov. 26 at the end of a six-month grace period, while yellow companies will face penal action effective Feb. 23, at the end of a nine-month grace period.