Saudization

Saudization or Saudisation of the workforce [1] -the replacement of foreign workers with Saudi nationals 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 was 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 of 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 in most sectors the actual rates are still much lower, because most Saudis are not interested in working jobs requiring manual labor. [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 Realized beens. [10]

History

While many Saudi native men found employment with the government, they were not enough jobs to employ all unemployed. “Saudization” the workforce has been a goal of the kingdom since at least the Fourth Development Plan (1985-1989) which calls for replacing foreign workers with Saudi natives as one of its objectives. Immigration was tightened and many undocumented foreign workers were deported, but the program was only a marginal success. [11]

A Saudization goal for 2003 was that at least 30% of employees of companies with 20 or more workers should be Saudi natives, (although only 300,000 people were employed by companies of this size). [12]

In June 2006, negotiations entre business executives and senior government leaders, Including King Abdullah , led to reductions of Saudization targets in some work Sectors from 30 percent to 10 percent, and full waivers from Saudization in the case of two Chinese companies, selon discussions Between US ambassador James C. Oberwetter and Saudi executives. [13]

Currently the plan targets Saudi youths as well as the women workers 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 transportation and communication sectors recorded the highest improvement in Saudiance rates from 9 percent to 20 percent. Manufacturing also underwent a remarkable improvement in Saudization rates (from 13 percent to 19.3 percent). Saudization rates in the retail and construction sectors also improved from 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, improved. Saudis. Average Saudi employment growth in the manufacturing and wholesale 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 average 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 given the particularly high wage differential from non-Saudis. Saudis in the construction sector earned a monthly average of SR3,330 in 2013, while not Saudis earned only SR1,029. [14] 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 average 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 given the particularly high wage differential from non-Saudis. Saudis in the construction sector earned a monthly average of SR3,330 in 2013, while not Saudis earned only SR1,029. [14] 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 average 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 given the particularly high wage differential from non-Saudis. Saudis in the construction sector earned a monthly average of SR3,330 in 2013, while not Saudis earned only SR1,029. [14] While employment of non-Saudis in the sector grew by 14 percent. The higher growth in Saudi employment in the construction sector is impressive given the particularly high wage differential from non-Saudis. Saudis in the construction sector earned a monthly average of SR3,330 in 2013, while not Saudis earned only SR1,029. [14] While employment of non-Saudis in the sector grew by 14 percent. The higher growth in Saudi employment in the construction sector is impressive given the particularly high wage differential from non-Saudis. Saudis in the construction sector earned a monthly average of SR3,330 in 2013, while not Saudis earned only SR1,029. [14]

Challenges

At least some observers (Harvey Tripp and Peter North) have called the Saudization efforts “desultory” and stated that Saudi businesses complain that native Saudis are unwilling to take service and manual labor jobs for which they are not educated . [7] [15] [16] Most graduates were trained in religious subjects. As of 2009, only about 20 per cent of the kingdom’s graduates were in technical and scientific fields. [17] One Saudi use complaint to a Western Journalist (Max Rodenbeck) “I want to hire Saudis, but why would I hire someone who will know not to up, will not care, and can not be fired. [18] [19] When legislation restricted employment in certain designated industries (taxi driving and selling gold) the laws were “promptly rescinded” when the targeted industries “degenerated, almost immediately, into chaos” Saudis with “no job knowledge and little inclination to work.” [20]

One effect of the program has been to create a black market for visas for foreigner workers estimated at $ 1500 or more (as of 2008), as Saudization enforces to limit the issue of work. [16]

In 2014, Arab News reported that the failure to meet the Saudization targets by “cooking the books” by hiring 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 Saudi by the end of October 2013. About 4,66,689 Indian workers have renewed their iqamas (resident permit) over the last five months of the grace period, Their sponsorship and 355,035 workers changed their job titles to legalize their status (eg. [23] More than 200, 000 private firms have been closed down in 2014 for failing to meet the conditions set within the Nitaqat nationalization program. [24]

The program is divided into four categories: Premium, Green, Yellow and Red. Premium and Green categories include the companies with high Saudization rates, while Yellow and Red include the ones with low rates. The classification of other companies is based on the Saudization percentage (% of Saudi employees) and the total number of employees. Saudi Citizenship is one of the world’s leading employers. [25] Rapid visa services are available only to businesses which are in the platinum category of the Nitaqat system to improve employment for Saudis. [26]

Total no. Of employees The
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 easier visa processing
    • Recruitment Services from the Red and Yellow category
    • Get a one-year grace period when their licenses or registrations expire
    • Transfer the visas of potential employees from other companies, even when the employee has not completed two years with the first employer
  • Green-category companies (excellent compliance)
    • Apply for new visas once every two months
    • Recruit employees from the Red- and Yellow-category companies and transfer their visas without their permission
    • Change the professions of their foreign employees (except for positions restricted to the Saudi citizens)
    • Get a six-month grace period when their certificates expire
    • Renew work permits of foreign employees, whose visas are valid for three months or more
  • Yellow category companies (poor compliance)
    • Can not get new visas, but can get one visa only
    • 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 modifications 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 Saudi citizens. Unemployed. Unsuccessful implementation of Saudization program, the large presence of foreign workers and high rates of unemployment among Saudis, a. [32] The Labor Ministry, which intends to tighten its grip on private companies that are reluctant to Saudize jobs, said newly employed Saudi worker under the Nitaqat program. [33]

New phase of Nitaqat announced . The third phase of Nitaqat Saudization will be implemented on Rajab 1 (April 20) with advanced systems to create more jobs for citizens in the private sector. [34] The C ouncil of S audi C hambers has reportedly asked the Labor Ministry to delay by three years the implementation of the Nitaqat program’s third phase which aims to further increase the percentage of Saudis working in private firms. [35]

The higher growth in Saudi employment in the construction sector is impressive given the particularly high wage differential from non-Saudis. Saudis in the construction sector earned a monthly average of SR3,330 in 2013, while not 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 as well as small businesses. It cancels all the previous decisions that contradict with it. [ 34 ] Central Department of Statistics and Information (CDSI) said that 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]

Nitaqat system for Saudis working in the private sector. [40] Minister of Labor Adel Fakeih announced that Saudi jobseekers 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 Saudiation further by ending the long wait of Saudis to be counted for Nitaqat. With the new directive, the GOSI shall, in accordance with the provisions of this Article, [41]

Nitaqat for women

Women working in the Nitaqat system. For the platinum zone, those who work from home 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 areas 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 during 24 months after delivery. The rest hours will be included in work hours. If the business does not have a nursery, She can nurse her child either 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 to them by the Labor Ministry’s Hafiz unemployment assistance program. The number of women job seekers crossed the million barrier and now women account for about 77% of all unemployed citizens. [ Saudi under the Nitaqat Saudization program, according to sources at the Ministry of Labor. This will be in coordination between the National Employment Program and the Human Resources Development Fund in Saudi women. [45] [43] More than 682,000 Saudi women job seekers have refused to accept private sector employment offered to them by the Labor Ministry’s Hafiz unemployment assistance program. The number of women job seekers crossed the million barrier and now women account for about 77% of all unemployed citizens. [ Saudi under the Nitaqat Saudization program, according to sources at the Ministry of Labor. This will be in coordination between the National Employment Program and the Human Resources Development Fund in Saudi women. [45] [43] More than 682,000 Saudi women job seekers have refused to accept private sector employment offered to them by the Labor Ministry’s Hafiz unemployment assistance program. The number of women job seekers crossed the million barrier and now women account for about 77% of all unemployed citizens. [ Saudi under the Nitaqat Saudization program, according to sources at the Ministry of Labor. This will be in coordination between the National Employment Program and the Human Resources Development Fund in Saudi women. [45] 000 Saudi women job seekers have refused to accept private sector employment offered to them by the Labor Ministry’s Hafiz unemployment assistance program. The number of women job seekers crossed the million barrier and now women account for about 77% of all unemployed citizens. [ Saudi under the Nitaqat Saudization program, according to sources at the Ministry of Labor. This will be in coordination between the National Employment Program and the Human Resources Development Fund in Saudi women. [45] 000 Saudi women job seekers have refused to accept private sector employment offered to them by the Labor Ministry’s Hafiz unemployment assistance program. The number of women job seekers crossed the million barrier and now women account for about 77% of all unemployed citizens. [ Saudi under the Nitaqat Saudization program, according to sources at the Ministry of Labor. This will be in coordination between the National Employment Program and the Human Resources Development Fund in Saudi women. [45] The number of women job seekers crossed the million barrier and now women account for about 77% of all unemployed citizens. [ Saudi under the Nitaqat Saudization program, according to sources at the Ministry of Labor. This will be in coordination between the National Employment Program and the Human Resources Development Fund in Saudi women. [45] The number of women job seekers crossed the million barrier and now women account for about 77% of all unemployed citizens. [ Saudi under the Nitaqat Saudization program, according to sources at the Ministry of Labor. This will be in coordination between the National Employment Program and the Human Resources Development Fund in Saudi women. [45] This will be in coordination between the National Employment Program and the Human Resources Development Fund in Saudi women. [45] This will be in coordination between the National Employment Program and the Human Resources Development Fund in Saudi women. [45]

Misuse of Nitaqat

An official at the Ministry of Labor said. The results of this study are summarized in the following table. The results of this study are presented in the following table. percent. If employees with disabilities in a firm exceeds 10 percent of the total number of Saudi employees, then each worker is calculated to be Saudi. “It is unfortunate that there are some companies and individuals who exploit people with disabilities to pump up their Saudization rates, “And Saudi workers with disabilities who are able to work are counted as four employees in the Saudization ratio. They should be paid a minimum monthly wage of 3,000 riyals and should be counted as part of the Saudization ratio of another establishment. Saudi employees at higher salaries. To the extent that it is necessary to make a decision, An executive at a private company said that it was a good idea to have a company with a company that would be able to make a profit. Companies who are paying less than a full-time equivalent of $ 100,000, 000 each. They offer their services. Some companies accept, refuse, others added. The Ministry of Labor determines the nature of disability on the part of the employee. [Article in French] [Article in French] [Article in French] [Texte intégral] [Texte imprimé] Nitaqat, the individual must have a license or identification card from the Ministry of Social Affairs or Ministry of Labor indicating the type and degree of disability. Further, Work conditions and systems must be acceptable and suitable for employees based on the type of disability, and establishments should ensure all services are in place before the employee begins work. [46]

Nitaqat is aiming illegal expatriates only

Saudi Arabia’s Deputy Minister of Foreign Information, Abdulaziz Binsalamah said Nitaqat has been implemented to ensure that millions of foreign workers, including Indians who have valid documents can enjoy their entities. It is not affecting legal employees working in the Kingdom. The Saudi national for every 10 migrant workers. There is a wide range of Indians working there. [47]

Four million expatriates regularise their status

Saudi arabia has completed regularization of nearly four million foreign workers in the second quarter of 2013 as part of its `Nitaqat` 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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