Labor Ministry move gives firms Saudization relief

February 9, 2015

Jeddah, Feb 9: The Labor Ministry has softened its Saudization drive in favor of businesses by canceling a previous decision that demanded 13 weeks for confirmation of a Saudi’s appointment as a full employee under Nitaqat.

Labor Ministry

Under the new decision, a Saudi would be calculated in the Nitaqat system soon after his registration with the General Organization for Social Insurance, provided the company must have paid the worker’s premium.

“The new system is applicable to all Nitaqat categories as well as small firms having nine workers or less,” a Labor Ministry statement said, adding that the new decision would be applicable from Feb. 22. It cancels all the previous decisions that contradict with it, the ministry said.

The cancellation came in a response to a request made by the Council of Saudi Chambers to protect the interests of private companies.

The ministry had implemented the mechanism about six months ago to ensure that private companies follow the Saudization regulations and prevent false nationalization of jobs.

The ministry was calculating the number of Saudis at a company over successive periods of 13 weeks. The move was aimed at tracking whether employers are holding on to their Saudi employees, said Hattab Al-Anazi, spokesman of the Ministry of Labor.

In the first month, the Saudization percentage is calculated by counting the new Saudi employee as a one-third employee, in the second month the employee is calculated as a two-thirds employee. In the third month, each new Saudi is counted as a full employee.

Under Nitaqat, there are varying Saudization percentages for various industries. For example, the quota at banks employing 500 people or more is a minimum of 49 percent.

For the media sector, it is 19 percent. Commercial establishments, insurance companies and public schools also have to stick to the 19 percent minimum.

For some business activities, such as lingerie shops, 100 percent Saudization is required, specifically aimed at providing employment to Saudi women.

Official figures put the level of unemployment at 10 percent, but among women employment rate could be as high as 30 percent.

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News Network
May 20,2020

Cairo, May 20: A senior Kuwaiti lawmaker has called for imposing a tax on expatriates’ remittances to shore up the country’s finances.

MP Khalil Al Saleh, the head of the parliament’s Human Resources Committee, has presented a draft law on the proposed tax to the legislature.

“Imposing fees on expatriates’ transfers will have a role in improving the state's revenues and diversify sources of income,” he told Al Rai newspaper.

Migrant workers transfer about 4.2 billion dinars annually from Kuwait, he added, citing figures from Kuwait’s Central Bank.

“This system is in effect in most countries of the world and in more than one Gulf country. Expats there have not objected to it. Allowing this money to exit the country is very dangerous and has a direct effect on economy,” MP Al Saleh said.

“We do not target brotherly expats because imposing symbolic fees on financial transfers will not affect their money, but will have a positive effect on the state’s sources,” he said. “This has become a necessity after the money transferred outside Kuwait has reached 4.2 billion dinars annually without the state [Kuwait] making any benefit from this.”

Foreign workers make up 3.3 million of Kuwait’s 4.6 million population.

Several Kuwaiti public figures have recently pushed for redrawing the demographic imbalance in the country, accusing expatriates of straining health facilities and increasing the Covid-19 threat.

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Agencies
April 8,2020

Riyadh, Apr 8: Saudi Arabia's health minister has warned the number of COVID-19 cases in the country could reach 200,000 in coming weeks.

As of Tuesday, the kingdom registered a total of 2,795 coronavirus infections, including 41 deaths.

"Within the next few weeks, studies predict the number of infections will range from a minimum of 10,000 to a maximum of 200,000," health minister Tawfiq al-Rabiah was cited as saying by the official Saudi Press Agency on Tuesday.

On Monday, Saudi Arabia extended the duration of daily curfews in four governorates and five cities to 24 hours.

The kingdom imposed round-the-clock lockdowns in the capital Riyadh, Tabuk, Dammam, Dhahran and Hofuf, the interior ministry said on Twitter.

The same measures were also imposed on the governorates of Jeddah, Taif, Qatif and Khobar, the ministry added.

Authorities had already sealed off the holy cities of Mecca and Medina, barring people from entering and exiting as well as prohibiting movement between all provinces.

Last month, Saudi Arabia suspended the year-round "Umrah" pilgrimage over fears of the coronavirus pandemic spreading to Islam's holiest cities.

Authorities are yet to announce whether they will proceed with this year's Hajj, scheduled for the end of July. Last week, authorities urged Muslims to temporarily defer preparations for the annual pilgrimage.

Last year, about 2.5 million people travelled to Saudi Arabia to take part in the Hajj, which all Muslims must perform at least once in their lives if able.

The Arab world's biggest economy has also closed down cinemas, malls and restaurants and halted flights as it steps up efforts to contain the virus.

King Salman has warned of a "more difficult" fight ahead against the virus, as the kingdom faces the economic double blow of virus-led shutdowns and crashing oil prices

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News Network
April 30,2020

Riyadh, Apr 30: Saudi Arabia on Thursday recorded 1,351 new coronavirus cases in the last 24 hours, bringing the total number of infections in the country to 22,753, the Ministry of Health said in a statement.

The ministry also announced 5 more deaths and 210 new recoveries, raising the total number of fatalities and recoveries to 162 and 3,163 respectively.

Riyadh with 440 cases topped the list, followed by 392 cases in Makkah, 120 in Jeddah and 119 in Madinah.

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