New govt strategy targets cover-up businesses

The Saudi labor and commerce ministries have agreed to develop a strategy to tackle cover-up businesses in the Kingdom, which include joint inspections, exchanging information on offenders, and updating regulations.

The ministries would also offer greater support for young people to start their own small and medium enterprises as a means to counter those operating illegally.
These were some of the recommendations adopted by the ministries at a meeting on Wednesday chaired jointly by Minister of Labor Adel Fakeih and Minister of Commerce and Industry Tawfiq Al-Rabiah.

They also supported current efforts to increase Saudization, issue seasonal Haj visas through Saudi recruitment companies, and establish service centers in industrial complexes.
In a statement, the ministries announced that they would develop an electronic system to monitor operation and maintenance contracts, including Saudization quotas, and adopt a standardized system to rate contractors.

They also stressed the need to adopt certain standards and certificates of competence for various sectors, develop a mechanism to issue licenses for new companies, and a way to monitor the capital of firms.
The two sides also decided on an action plan to set up service centers of the Human Resources Development Fund in industrial centers and cities to help owners of establishments and job seekers, particularly women.

The ministries had announced earlier that there are severe penalties for Saudis and expatriates involved in cover-up businesses.
These include a fine of SR1 million, jail time of up to two years, and having their businesses closed down. Non-Saudi violators would be deported.
The two ministries also warned individuals and private firms that they should not hire people who have violated the country’s regulations. They also warned citizens that they should not seek assistance from any unlicensed agency to recruit foreign workers.

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