Nitaqat: MoL analyzing market needs

The Labor Ministry has announced that it is currently studying the needs of the market as part of its review of the delayed Nitaqat 3 proposals that would have raised Saudization requirements for companies in the country.
Deputy Labor Minister Ahmad Al-Humaidan was quoted as saying in a local publication on Friday that the review would be part of a report on supply and demand in the market.
He said there was no timetable for the review of Nitaqat 3 and companies would be given adequate time to prepare if any changes are made. The aim is to ensure the protection of workers and employers. He said the ministry is working with employers through the different sectoral committees to produce reports on the needs of the market.
Earlier this year, the ministry delayed the implementation of the proposals that would have come into effect on April 20. This came in the wake of requests from the Council of Saudi Chambers (CSC) and several companies, which had argued that the higher rates would hurt industries.
The CSC had asked the ministry to postpone the third phase for three years to avoid a labor shortage in the construction, manufacturing and sales sectors. The CSC said that raising the Saudization rate would have a negative impact on the job market as companies would not be able to recruit enough Saudi workers, especially for small and medium enterprises.
The CSC indicated that the turnout of Saudis at a recent fair it organized, which offered about 3,000 jobs, saw only 1,409 men and women attend company interviews, even after a strong advertising campaign.
The ministry wanted downstream industries to raise the Saudization rate from 25 to 41 percent, large retail and wholesale firms from 29 to 44 percent, and other large commercial establishments from 29 to 66 percent. It also wanted small businesses to increase the number of Saudi workers gradually.