Government | Friday 10 April, 2015 2:24 am |

Minister of Labor Adel Fakeih has postponed implementing new legislation that would have forced private companies to raise their Saudization levels.
The move is to help the private sector understand the new amendments, the minister was quoted as saying in a local publication on Wednesday. The amendments had been approved by the Cabinet.

Fakeih said the government appreciates the manner in which private companies have sought to improve Saudization levels in the country. Saudis now make up 15 percent of the workforce in the private sector, or over 1.6 million workers, a significant increase from the previous 7 percent, he said.

In addition, many are earning higher wages. While 49 percent of Saudis previously earned below SR3,000, this figure had dropped to 4 percent earlier this year, he said.
Saudi businesspeople had earlier this year criticized the ministry’s new Saudization quotas, which would have been introduced on April 20, as unrealistic. Arab News reported at the time that some had called for a delay of between one to three years.
Under the third phase of the Nitaqat program, the Saudization quotas for big firms would increase from 25 to 41 percent, the same as the retail and wholesale trade sector, and from 29 to 66 percent for big groups.

Companies have to meet the new Nitaqat quotas to expand their operations, get visas for workers and have access to the ministry’s other services. The Council of Saudi Chambers had reportedly sent a letter to the ministry, requesting it to delay the implementation for three years.Sources said 1,329 complaints were registered against insurance companies, and 186 against business owners.