Most firms to be out of Nitaqat’s danger zone by month end

The Ministry of Labor said that most private companies and establishments will have moved to the Nitaqat’s ‘safe’ zones by the end of 2013. Currently, 87 percent of them are in the Green and Platinum categories, 7 percent are in the Yellow and 6 percent in the Red category, compared to 30 percent in the Yellow and 20 percent in the Red category in June 2011.
Labor Minister Adel Fakeih said Saudization had increased by 15 percent which translates into 723,000 Saudis employed in the private sector since the Nitaqat system was implemented in 2011. The monthly wages of nearly one million Saudi male and female employees increased to SR3,000 or more during the same period.
The minister was speaking at a recent meeting with the chairmen of the Council of Saudi Chambers and the members of the national committees that represent most of the economic sectors in the Kingdom.
The ministry offered solutions to the private sectors’ problems of obtaining work visas for the non-Saudi work force. Some of the recommendations were for the reduction of the Saudi quotas in construction companies that are already in the green and platinum categories, the introduction of a system for instant issuance of visas, the establishment of a system for labor exchange in the construction sector and the creation of work regulations for expatriate workers’ dependents. The ministry also suggested that a Nitaqat Guide be published which would clearly outline the recruitment criteria.
During the meeting, the ministry laid down a 27-point solution to overcome the challenges in organizing the labor market and nationalizing jobs in the private sector and asked the attendees to deliberate on the suggestions and make recommendations.