The Cost of Saudization

The Cost of Saudization
Updated 16 December 2012
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The Cost of Saudization

The Cost of Saudization

This refers to the Arab News report, “Shoura urges review expat labor fee,” published on 15 Dec. in which it has been said that the members of the Shoura Council are currently planning to convince the Ministry of Labor to reconsider the ministry’s new levy on expatriate workers.

The Shoura Council members are taking a very good step to convince the ministry to reconsider the ministry’s new levy on the expatriate workers.
I appreciate their concern that the annual fees of SR 2,400 would only lead to a sharp rise in consumer prices and impose an additional burden on citizens. They also believe that the levy has been implemented at an inappropriate time, especially for small and medium establishments.

Practically it is very hard to employ 50 percent Saudi’s particularly in the low category field. There are more than 8 million expatriates in the kingdom. How the ministry will fill this gap? There is no logic at all.

All the contractors will raise the tender costs for the new contracts. If, this laws continues, ultimately the government will have to bear the extra 2,400 riyals. — Farooqh Abdulla, By e-mail