JEDDAH, 3 March 2007 — A high-level ministerial committee is studying a proposal to cancel sponsorship transfer fees for workers who are needed to carry out government contracts.
“A panel comprising officials from the Ministries of Labor, Finance and Commerce and Industry is now putting final touches to the new law for canceling the fee,” said a high-level source at the Labor Ministry.
The new move, according to the source, is aimed at meeting labor requirements of new economic cities and new government projects in industrial cities. “There was considerable increase in the number of visas issued for the recruitment of foreign manpower,” the source said.
The panel is likely to set certain conditions to facilitate the transfer of sponsorship between government organizations. Laborers, technicians and supervisors involved in carrying out government contracts will benefit from the new law.
“This is good news for contractors,” said Abdullah Al-Saihati, chairman of Saihati Group. Speaking to Arab News by telephone, Saihati, a leading businessman in the Eastern Province, said the new move would speed up transfer of sponsorship and help contractors receive adequate manpower. “It will also help us recruit skilled workers available in the Kingdom, instead of applying for new visas. Thus, it will save us a lot of time, money and energy,” he said, and urged authorities to take a quick decision on the matter.
Saihati, whose company is involved in carrying out a large number of government contracts including those of Saudi Aramco and Saudi Electricity Company, said the new move would also minimize expenditures of both employers and workers.
Asked whether his company was facing any problems in procuring visas or the transfer of sponsorship, Saihati said: “We don’t face any problem, except delay in completing procedures.”
He said the new plan would help expatriates in switching to better jobs.
There are several new government projects in the education, health, communication, electricity and other sectors. Abdullah ibn Hamad Al-Ammar, chairman of the National Committee for Contractors, estimated the total value of new projects including those of Saudi Basic Industries Corp and Saudi Aramco at SR282 billion. “To implement these projects we need at least 1.2 million additional visas to recruit engineers, skilled labor and ordinary workers,” he said.
