1.7 million firms out of Nitaqat purview

1.7 million firms out of Nitaqat purview
Updated 04 February 2014

1.7 million firms out of Nitaqat purview

1.7 million firms out of Nitaqat purview

The Ministry of Labor revealed in a report published last year that 87 percent of private sector establishments are in the “white category” of the Nitaqat nationalization scheme.
The “white category” alludes to companies with only 10 employees and which are consequently required to hire only one Saudi.
This translates to a staggering 1.7 million establishments that are essentially excluded from the Kingdom’s nationalization plans aimed at creating employment for Saudi citizens.
Only 265 companies were categorized within the zones of the Nitaqat nationalization program — the red, yellow, green and platinum. This means that only 13 percent of companies fully comply with requirements for job nationalization.
The report pointed out that the ministry would embark on the fourth phase of the wage protection program in March. The move will ensure that employees receive their monthly salaries on time and will curb manipulation in delaying payment.
The fourth phase will include establishments with 500 to 1,000 workers.
“The last phase of the program will be implemented in October on establishments with 100 to 200 workers,” the report said.
The report indicated that the number of recruiting offices increased to 338 last year, compared with only 208 in 2009. Around 40 new offices were opened last year alone.