Labor crisis hits 36% of construction projects

Updated 23 July 2013

Labor crisis hits 36% of construction projects

The number of registered construction project contracts in the Kingdom was 250,000 before the first grace period to legalize expatriate workers ended. However, 90,000 of these registered contracts belonging to small contracting companies have since been canceled, according to Raed Aqeili, a member of the National Committee in Saudi Chambers.
Most big projects were affected by this decision because they relied on small companies for employment. During the grace period many of the contractors moved their employees to other sectors, while some individual workers returned to practice professions stated in their iqamas, or residency permits, Aqeili added.
Some contracting companies have the professional skills, but they need to exert more effort in executing their businesses. After laborers left these companies, their projects were temporarily affected. Aqeili feared the problem might escalate in the coming months, especially after the end of the grace period.
Aqeili said contracting companies need to hire professional laborers who can carry out contracting work from rental companies.
The cost of the current five-year plan for projects — which started in 2009 and will finish in 2014 — is SR400 billion. But most of the projects have not been completed.
Aqeili hoped labor crisis would be resolved. He said speedy solutions need to be reached to guarantee the existence of sufficient labor in the contracting markets to avoid further crises.


Saudi Arabia appoints new FM, transport minister

Updated 23 October 2019

Saudi Arabia appoints new FM, transport minister

  • Saudi Arabia appointed Prince Faisal bin Farhan Al-Faisal foreign minister
  • Saleh bin Nasser Al-Jasser was appointed transport minister

RIYADH: Saudi Arabia appointed Prince Faisal bin Farhan Al-Faisal foreign minister and Saleh bin Nasser Al-Jasser transport minister, according to royal decrees published by Saudi Press Agency on Wednesday.

Amongst the other decrees, Saleh Mohammed Al-Othaim was appointed deputy head of the Saudi Data and Artificial Intelligence Authority, whilst Abdullah bin Sharaf Al-Ghamdi was appointed head of the Saudi Data and Artificial Intelligence Authority.

Tariq Abdullah Al-Sheddi was appointed head of the National Data Management Office, and Essam Abdullah Al-Waqit was appointed director of the National Information Center. 

Ibrahim Al-Assaf was relieved of his post as Saudi minister of foreign affairs, and Nabil bin Mohammed Al-Amoudi was relieved of his position as minister of transport.