'Red-zone' firms face massive crackdown

August 21, 2014

Jeddah, Aug 21: Saudi authorities are getting ready to launch a massive campaign next month against more than 17,000 firms that are in the "red zone" of the Nitaqat nationalization scheme for not employing a single Saudi, Labor Ministry sources said.

Saudi authorities“There are 17,314 red-zone firms in different parts of the Kingdom that employ 241,530 foreign workers,” one source said, adding that labor officials would allow these workers to transfer their services to companies in the green and platinum zones for having a more than sufficient Saudi-to-expat ratio.

“Labor officials will ask the owners of these firms to show evidence that suggests that they did not allow their workers to look for jobs in the market because workers would not have valid resident permits,” the source said.

Ibrahim Badawood, managing director of ALJ Community Services, emphasized the importance of the ongoing joint campaign waged by Interior and Labor Ministry officials, saying it was primarily aimed at cleansing the country’s labor market.

“The campaign is not at all targeted against foreign workers,” Badawood told Arab News.

He said companies that improve their Saudi-to-expat ratio would be given more visas to bring experienced and skilled foreign workers.

He, however, stressed that companies in red and yellow categories must employ more Saudi nationals if they want to stay in business.

“This is the only solution,” he said.

Badawood said he believed that Interior and Labor ministries would continue their campaign against residency and labor rule violators.

“Some people think the campaign will die down after sometime, but I believe that the campaign will continue until illegals are driven out,” he added.

He said the campaign would not have any negative impact on business in the long run.

“Of course, it will affect business temporarily, but stronger companies employing a greater number of Saudis will eventually contribute to strengthening the market.”

Capt. Abdul Aziz Al-Harbi, Eastern Province police spokesman, said nearly 82,000 illegal workers have been arrested in the region during this Hijrah year.

“More than 700 illegal expats have been arrested over the past 24 hours across the region,” he pointed out.

He said Al-Ahsa police carried out an intense security campaign late Monday night, adding that the campaign continued until Tuesday morning.

“Police and labor officials targeted foreign workers in the Al-Maraz, Al-Kout and Al-Mazrouiyah districts, in addition to majors streets in the city center, and arrested 185 violators,” Al-Harbi said.

He said police arrested 5,523 violators in the region during the past three weeks, adding that they have been transferred to special detention centers. About 5,625 violators have been arrested in the industrial city of Jubail, he said.

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News Network
March 23,2020

Dubai, Mar 23: All inbound, outbound and transit passenger flights to and from the United Arab Emirates – home to one of the world’s busiest hubs – are to be suspended for two weeks.

The UAE’s National Emergency Crisis and Disasters Management Authority (NCEMA) and General Civil Aviation Authority (GCAA) has announced that passenger flights to, from and through the country will be suspended from 25 March for a period of two weeks, in order to “curb the spread of the Covid-19”.

Freight and emergency evacuation flights will still be permitted to operate.

The suspension affects major global hubs in Dubai and Abu Dhabi. Dubai-based Emirates has already announced that it will suspend most of its passenger flights from 25 March.

“Additional examination and isolation arrangements will be taken later should flights resume, in order to ensure the safety of passengers, air crews and airport personnel and their protection from infection risks,” state the NCEMA and the GCAA.

Dubai International Airport was the third-busiest airport in the world in 2018, handling 89 million passengers.

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News Network
March 11,2020

Mar 11: Energy giant Saudi Aramco on Wednesday said it plans to raise its crude production capacity by one million barrels per day to 13 million bpd as a price war with Russia intensifies.

"Saudi Aramco announces that it received a directive from the ministry of energy to increase its maximum sustainable capacity from 12 million bpd to 13 million bpd," the company said in a statement to the Saudi Stock Exchange.

The decision comes a day after the world's top exporter, Saudi Arabia, decided to hike production by at least 2.5 million bpd to a record 12.3 million from April.

The Saudi moves come after the collapse of an oil production reduction agreement between OPEC and non-OPEC producers, including Russia.

The deal proposed by Saudi Arabia called for additional output cuts of 1.5 million bpd to cope with the severe economic impact of the coronavirus which has sharply reduced world demand for crude.

Boosting production capacity normally takes a long time and requires billions of dollars of investment.

Several years ago, the kingdom had shelved plans to boost its crude production capacity beyond 12 million bpd after demand for OPEC oil declined in the face of stiff competition from North American shale oil and other sources.

Russia on Tuesday said it was open to renewing cooperation with the OPEC cartel even as its kingpin Saudi Arabia escalated a price war with Moscow by announcing it would flood markets with new supplies.

The oil price war broke out after OPEC and a group of non-member countries dominated by Russia -- the world's second largest producer -- on Friday failed to agree on production cuts.

Saudi Arabia responded by announcing unilateral price cuts. This prompted the oil price to plummet and fuelled huge falls on stock markets around the world on Monday.

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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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