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Eye of Riyadh
Business & Money | Sunday 14 June, 2015 1:21 am |
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Nitaqat review on the cards

Authorities are likely to review the Nitaqat (Saudization) program, following complaints from employers that Saudi nationals refuse to take up some types of jobs.
The applications, endorsed by some ministries, state that the situation has created a big problem for employers in filling up the Saudi quota, resulting in work paralysis, sources have been quoted as saying by local media.
Most of the applications focused on two issues — lack of response from citizens to some professions because of their nature and place of work outside urban areas where the employee has to stay for a specified period.

Some ministries were forced into action after receiving studies and addresses from national committees affiliated to the Council of Saudi Chambers (CSC), seeking review of the system.
The national committees promised their readiness to grant Saudis overall opportunities to occupy professions and jobs in the private sector if they have the necessary training and qualifications.
The Ministry of Labor has raised the nationalization rate in a number of private sector establishments through Nitaqat by coming up with programs and projects on more opportunities for Saudi job seekers.

In April, Arab News reported that the Labor Ministry’s decision to postpone the Nitaqat program’s third phase sent a message of relief to expatriate workers and the private sector.
The ministry was scheduled to launch Nitaqat’s third phase on April 20 but the Labor Ministry postponed it to allow the private sector more time to understand standards regarding this stage of Nitaqat.

The CSC has put pressure on ministry to postpone the implementation of Nitaqat’s third phase for three years to avoid a labor shortage in the construction, manufacturing and sales sectors, which will be most affected as a result of this decision, according to local media.
The CSC said in a letter to the labor minister that raising the Saudization rate at this stage would have a negative impact on the job market.
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