Nitaqat causes delays to projects in Riyadh

Nitaqat causes delays to projects in Riyadh
Updated 06 August 2014

Nitaqat causes delays to projects in Riyadh

Nitaqat causes delays to projects in Riyadh

The Nitaqat program has provided jobs to some 255,000 Saudi nationals but it has also caused delays in the development of various projects.
Nitaqat, which means “zones” or “ranges”, is a Saudization program introduced by the Ministry of Labor and announced in June 2011 when the ministerial resolution No. 4040 was issued. Last year was the deadline for implementation of the resolution.
“Many projects in both the public and private sectors are pending. Various buildings under construction in the Saudi capital look abandoned because workers are nowhere in sight,” said a construction industry expert.
The source added that the contractors don’t have enough manpower to continue the projects because many of their workers were sent home during the correction period from April 6 to Nov. 3 last year.
Contractors could apply for up to ten visas with the Passport Department for foreign workers, but if they need 50 visas or more they have to go to what is called a “mega house” where each visa costs SR8,000.
“The price of visas is too costly, in addition to the additional SR2,400 per year for each expat. In fact, some contractors have abandoned their projects,” he added.
He said that some contractors with deep pockets continue their projects at King Abdullah Financial District (KAFD) with a skeletal force, adding, “This explains why there are about a hundred or more workers at the project site during working hours.”
KAFD, which is being undertaken by the Riyadah Investment Corporation, consists of 34 towers spanning an area of 1.6 million sq. meters.
It will provide more than 3 million sq. meters of space for various uses, 62,000 parking spaces and accommodation for 12,000 residents.