Saudization

Saudization or Saudization of the workforce [1] -the replacement of foreign workers in the private sector -is the official national policy of the Kingdom of Saudi Arabia . [2] While many Saudis are employed by the government, there are not enough jobs for the growing number of youth. As of 2006 the private sector is largely dominated by expatriate workers from Southeast Asia and the Arab world.

Saudis, under the slogan ‘Let’s Put the Saudi in Saudization’. [3] [4] Companies which “fail to comply” with Saudization Regulations have been warned that they “will not be awarded government contracts”. [5] While the “Saudi political elite” is agreed on the importance of Saudization, [6] Saudi businesses have complained about its implementation and sought ways to avoid it. [7]

Since 2005, the target Saudization rate has-been set at 75% for the private sector, [8] HOWEVER MOST Sectors in the actual rates are still much lower, Because MOST Saudis are not interested in working manual labor jobs Requiring. [9]

In 2014 the Saudi Gazette reported that one of the targets of the kingdom’s Ninth Development Plan (2010-2015) – to “bring down the unemployment rate to 5.5 percent and revive the Saudization strategy” -had not been realized. [10]

History

While many are employed with the government, there are not enough governments to employ all unemployed. “Saudization” the workforce has been a goal of the world since at least the Fourth Development Plan (1985-1989) Immigration was tightened and many undocumented foreign workers were deported, but the program was only marginal. [11]

A Saudization goal for 2003 was only at least 30% of employees of Saudi Arabia, (though only 300,000 people were employed by this company). [12]

In June 2006, negotiations between business executives and senior government leaders, including King Abdullah , led to reductions in Saudization targets in some of the Chinese companies, according to discussions between USAmbassador James C. Oberwetter and Saudi executives. [13]

Currently the plan targets for the growth of the kingdom’s economy. The Shura Council (a consultative body) dictated that as of 2007, 70 percent of the work force were Saudi. Between 2011 and 2013, the highest rates of growth in Saudization rates from 9 percent to 20 percent. Also undergoing a remarkable improvement in Saudization rates (from 13 percent to 19.3 percent). The report also found that 12.9 percent and 7.2 percent to 18.4 percent and 10.3 percent respectively, said the report. Taking average growth for the period between 2011 and 2013, a major increase in growth rate of 59 percent growth in employment of Saudis. Average employment in the manufacturing and retail sectors was also high, at 25 percent each. Meanwhile, employment growth for non-Saudis averaged just 4 percent and 7 percent respectively. The construction sector – the most labor-intensive part of the private sector – recorded an impressive 34 percent growth in employment of Saudis, while employment of non-Saudis in the sector grew by 14 percent. The higher growth in Saudi employment in the construction sector is impressive from the non-Saudis. Saudis in the construction sector earned a monthly average of SR3,330 in 2013, while non-Saudis earned only SR1,029. employment growth for non-Saudis averaged just 4 percent and 7 percent respectively. The construction sector – the most labor-intensive part of the private sector – recorded an impressive 34 percent growth in employment of Saudis, while employment of non-Saudis in the sector grew by 14 percent. The higher growth in Saudi employment in the construction sector is impressive from the non-Saudis. Saudis in the construction sector earned a monthly average of SR3,330 in 2013, while non-Saudis earned only SR1,029. employment growth for non-Saudis averaged just 4 percent and 7 percent respectively. The construction sector – the most labor-intensive part of the private sector – recorded an impressive 34 percent growth in employment of Saudis, while employment of non-Saudis in the sector grew by 14 percent. The higher growth in Saudi employment in the construction sector is impressive from the non-Saudis. Saudis in the construction sector earned a monthly average of SR3,330 in 2013, while non-Saudis earned only SR1,029. The higher growth in Saudi employment in the construction sector is impressive from the non-Saudis. Saudis in the construction sector earned a monthly average of SR3,330 in 2013, while non-Saudis earned only SR1,029. The higher growth in Saudi employment in the construction sector is impressive from the non-Saudis. Saudis in the construction sector earned a monthly average of SR3,330 in 2013, while non-Saudis earned only SR1,029.[14]

Challenges

At least some observers (Harvey Tripp and Peter North) have called the Saudis’ efforts “desultory” and stated that they are not responsible for . [7] [15] [16] Most graduates were trained in religious subjects. As of 2009, only about 20 percent of the country’s graduates were in technical and scientific fields. [17] One Saudi employ complained to a Western journalist (Max Rodenbeck) “I want to hire Saudis, but why would I hire someone who will not care, and will not care, and we will not be fired.” [18] [19]When laws of employment for Saudis in certain designated industries (taxi driving and selling gold) the laws “were fairly quickly rescinded” when the targeted industries “degenerated, almost immediately, into chaos” and little inclination to work. ” [20]

$ 150,000 or more (as of 2008), as a percentage of the cost of living for foreigners. [16]

In 2014, Arab News reported that the failure to meet the Saudis who do not meet the goals of “Saudis who do no actual work. [21]

Nitaqat initiative (2011)

Nitaqat

Nitaqat (“ranges” or “zones”) is a Saudization program introduced by the Saudi Ministry of Labor. [22] The initiative was announced in June 2011, when the Ministry of Labor passed Ministerial Resolution no. (4040). The implementation deadline for the program was in 2013. Nearly 90,000 Indians left by the end of October 2013. About 4,66,689 Indian workers have resumed their work (resident permit) over the last five months of the grace period, 359,997 workers transferred their sponsorship and 355,035 workers changed their job status (eg: profession change, sponsorship change etc.) reports the Financial Express. [23]More than 200,000 private firms have been closed down in 2014 for failing to meet the conditions set forth in the Nitaqat nationalization program for reducing unemployment among Saudis. [24]

The program classifies the country’s private firms into four categories: Premium, Green, Yellow and Red. Premium and Green categories include high and low rates, and yellow and red. The classification of other companies is based on the Saudization percentage (% of Saudi employees) and the total number of employees. The companies with less than 10 employees are exempt from the program, but still need to employ at least one. [25] Rapid visa services are available only in the category of Nitaqat system to improve employment for Saudis. [26]

Total no. of employees Saudization percentage
Red Yellow Green Platinum
10 – 49 0 – 4% 5 – 9% 10 – 39% ≥ 40%
50 – 499 0 – 5% 6 – 11% 12 – 39% ≥ 40%
500 – 2,999 0 – 6% 7 – 11% 12 – 39% ≥ 40%
3,000+ 0 – 6% 7 – 11% 12 – 39% ≥ 40%

The companies Receive incentives or penalties DEPENDING on the category They belong to: [27] By visiting the ministry’s website [1] , the companies Would ble To Understand Their position [28]

  • Premium-category companies (VIP)
    • Can recruit foreign workers using visa facilitation
    • Recruit Employees from the Red and Yellow Crap Companies and Their Visas
    • Get a one-year grace period when their licenses or registrations expire
    • Transfer the visas of potential employees of other companies, even when the employee has not completed
  • Green-category companies (excellent compliance)
    • Apply for new visas once every two months
    • Recruit employees from the Red- and Yellow-category companies and their visas without their permission
    • Change the professions of their foreign employees
    • Get a six-month grace period when their certificates expire
    • Renew work permits of foreign employees
  • Yellow category companies (poor compliance)
    • Can not get new visas, but can not get a visa
    • Can not transfer visas
    • Can not stop Green- or Premium-category companies from transferring their employees’ visas
  • Red-category companies (non-compliance)
    • Can not get new visas
    • Can not transfer visas
    • Can not stop Green- or Premium-category companies from transferring their employees’ visas
    • Can not renew employees’ work permits
    • Can not change employees’ professions
    • Can not open new branches or facilities

There are changes made in Nitaqat program [29] and there are nine new sections added in the rules. [30] Commercial establishments, media organisms, banks, public schools and Insurance companies are the “quotas” that must be employed by Saudi laborers under this system [31] Nitaqat is being white run Alongside Reviews another initiative of the Ministry of Labor called Expired Hafiz , year national citizens’ benefit program which grants a fixed amount to unemployed. Unsuccessful implementation of Saudis, the large presence of foreign workers and high rates of unemployment among Saudis, a rise in youth population, a situation in the region of Saudi Arabian Government to launch the Nitaqat program.[32] The Labor Ministry, which intends to tighten its grip on private firms that are reluctant to Saudize jobs, said newly employed Saudis should stay with the company for at least 6 months. [33]

New phase of Nitaqat announced . The third phase of Nitaqat Saudization will be implemented on Rajab 1 (April 20) with private sector. [34] The C ouncil of S audi C hambers has reportedly asked the Labor Ministry to delay the implementation of the Nitaqat program’s third phase to increase Saudis working in private firms. [35]

The higher growth in Saudi employment in the construction sector is impressive from the non-Saudis. Saudis in the construction sector earned a monthly average of SR3,330 in 2013, while non-Saudis earned only SR1,029. [36] At least 86% of contracting companies have fulfilled the Nitaqat program’s minimum Saudization requirement. [37] The new system is applicable to all Nitaqat categories plus small firms having nine workers or less, a Labor Ministry statement said adding that the new decision would be applicable from February Last. It cancels all previous decisions that contradict with it. [38]Central Department of Statistics and Information (CDSI) said the Nitaqat nationalization program was successful in bringing down the Kingdom’s unemployment rate to 11.7% – 5.9% among men and 32.5% among women. [39]

Investors in various sectors have been called to the Ministry of Labor to a Nitaqat system for Saudis working in the private sector. [40] Minister of Labor Adel Fakeih announced that Saudi jobseekers will be hired by the private sector will be counted under the Nitaqat Saudization program immediately after their registration with the General Organization for Social Insurance (GOSI) effective from 22 February. The minister ‘s decision will boost Saudization further by ending the wait for Saudis to be counted for Nitaqat. With the new directive, the GOSI registration will become effective immediately after the payment of the insurance premium for all types of companies and establishments. [41]

Nitaqat for women

Women working from home will be included in the Nitaqat system. For the platinum zone, those who will be calculated as 30% of the total Saudi staff. For the Green zone, they will be calculated as 20% of the total Saudi staff while for the Red and Yellow zones they will be considered as 10% of the total Saudi staff. The decision will come into force on Feb last in 2015. [42]For nursing women, the decision tries to strike a balance between work and childcare. Women are allowed to take care of their children for 24 months after delivery. The rest hours will be included in work hours. If the business where a woman works does not have a nursery, she can nurse her child at the beginning or at the end of work hours. [43] More than 682,000 Saudi women job seekers have refused to accept private sector employment offered by the Labor Ministry’s Hafiz unemployment assistance program. The number of women job seekers crossed the million barrier and now 77% of all unemployed citizens. [44]Each Saudi woman will be trainee in the private sector under the Nitaqat Saudization program, according to sources at the Ministry of Labor. This will be in coordination with the National Employment Program for Joint Training and the Human Resources Development Fund in Saudi Arabia. [45]

Misuse of Nitaqat

An official at the Ministry of Labor said that they have been working closely with the government to promote their Saudization rates. The presence of employees in the workplace, the presence of employees in the workplace, and their presence at the job, and the type of arrangements and services provided to them. percent. If employed with disabilities in the United Kingdom, the percentage of the total number of Saudi employees, then, “It is unfortunate that there are some companies and individuals who “And Saudi workers with disabilities who are able to work in the Saudization ratio. They must be paid a minimum monthly wage of 3,000 riyals and should not be counted as part of the Saudization ratio of another establishment. To recent reports which reveal that they have been hiring Saudis with disabilities in order to boost Saudi Arabia’s employment at higher wages. An executive at a private company said there are some people with disabilities who present themselves to the companies for employment in return for wages, bonuses, and benefits. Companies are thus paying less than one employee, but they are equal to one another. 000 each. They offer their services. Some companies accept, refuse, others added. The Ministry of Labor and Other Workshops Regarding the Issue of Employees with Disabilities, Noting that the Ministry of Labor determines the nature of disability upon interviewing the employee. They currently have a draft decision to amend the definition of disability in the workplace. Nitaqat, the individual must hold a license or identification card from the Ministry of Social Affairs or Ministry of Labor indicating the type and degree of disability. Further,[46]

Nitaqat is only an expat expatriate only

Saudi Arabia’s Deputy Minister of Foreign Affairs, Abdulaziz Binsalamah said to have been implemented to ensure that millions of foreign workers, including Indians who have valid documents can enjoy their entitlements. It is not affecting legal employees working in the Kingdom. The Nitaqat law makes it mandatory for local nationals to hire one national for every 10 migrant workers. There is widespread perception of the policy that would lead to a decrease in the number of jobs Indians working there. [47]

Four million expatriates regularize their status

Saudi Arabia has completed regularization of its program, with 1.18 million expats choosing to change their profession. [48]

See also

  • Foreign workers in Saudi Arabia
  • Emiratisation
  • Omanisation
  • Qatarization
  • Kuwaitization

References

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  2. Jump up^ Maisel, Sebastian, ed. (2009). “Saudization”. Saudi Arabia and the Arab Gulf Today: An Encyclopedia of …, Volume 1 . Greenwood. p. 395 . Retrieved 13 February 2015 .
  3. Jump up^ Ahmed Al-Omran, Arab News, 22 August 2007
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  5. Jump up^ http://www.arabnews.com/?page=1§ion=0&article=58992&d=15&m=2&y=2005 ArchivedMarch 19, 2006, at theWayback Machine.
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  30. Jump up^ “9 new activities added to Nitaqat” . Saudi Gazette . 2014-11-02 . Retrieved 2014-12-08 .
  31. Jump up^ “what are the quotas of the various sectors under the system” .
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