Companies in the Yellow Zone want the government to ease regulations and allow them to hire expatriate workers even though they have not achieved Green or Premium status.

Companies in the yellow category face several hurdles because many are in sectors such as the construction industry that employ more foreign workers than Saudis.

The current regulations mean they can only renew work visas for each foreign employee on the condition that the employee has not spent more than six years in the Kingdom.

In addition, Yellow Zone firms also face the following penalties: they will only be allowed to get one visa on the departure of two foreign employees; will not be allowed to get new visas; will not be allowed to transfer visas; and have no control over employees wanting to move to Green or Premium categories.

They are also not allowed to open branches, which is a requirement to hire expatriate workers.

“Most contracting companies are in the Yellow Zone and are struggling to regularize prior to the July 3 deadline. When the authorities are approached with a request to register a branch, it is rejected because the companies are in the Yellow Zone,” according to an officer from a leading construction company.

He urged the Ministry of Labor to allow contracting companies to open branches so that they can hire workers and regularize their records.

Another official from a major construction company, which has a large expatriate work force, said the majority of expatriate staff are laborers. “We have lots of workers without iqamas and we need to fix this as a priority before the grace period ends,” he said.

“Unfortunately, we cannot get new iqamas in the Yellow Zone. Most laborers without iqamas are on strike and causing project delays because they fear government action against them after the grace period ends. Even government projects are at risk,” he added.

He said many subcontractors with illegal employers are withdrawing from projects because of the shortage of workers. To solve this problem he urged the government to allow Yellow Zone firms to hire new arrivals and transfer workers in the country under their sponsorship, for at least six years.

Another problem facing yellow zone companies is that when they hire more Saudis and meet the Nitaqat quotas, they are not recognized immediately for this. “They give the full credit on an incremental basis over three months.”