Young Saudi entrepreneurs have raised concerns about the negative impact some of the Nitaqat policies of the Labor Ministry are having on their businesses.

This came during a meeting of the Young Businessmen committee of the Makkah region held recently at the Jeddah Chamber of Chamber of Commerce and Industry, which discussed the problems that young Saudi businessmen are experiencing due to the policies of the Labor Ministry.

The young entrepreneurs, the majority of whom fall in the small and medium scale category, told officials that they are unable to recruit personnel due to the prevailing norms set by the authorities.

They urged the Labor Ministry’s Makkah regional director, Abdul Monem Al-Shahri, to review the policy which makes it mandatory for companies to pay SR 2,400 work permit fee for each expat worker.

“We have requested the Labor Ministry to review the policy as it is affecting business of small and medium enterprises,” said Tamer A. Al Farshooti, vice president of the Young Businessmen's Committee.

The committee also brought to the attention of the authorities the hurdles facing small and medium enterprises with regard to the implementation of several of the new labor laws.

Al-Shaheri assured the young businessmen of his support in helping them establish their businesses in the region.

The director also said that the Labor Ministry will consider establishing an exclusive division to assist young entrepreneurs in the region and facilitate their work with prompt services. He added that the proposed division could “be a single window system in which other supporting agencies such as the Human Resources Development Fund, Zakat department and the Saudi Credit Bank can have a presence.”

On a different note, the meeting also discussed Nitaqat’s positive role in providing jobs to more than 400,000 unemployed Saudi youth since its launch.