Saudi penalises firms violating nationalisation targets
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Saudi penalises firms violating nationalisation targets

Last Updated: Wednesday, November 30, 2011, 11:30
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Saudi penalises firms violating nationalisation targets Dubai: Saudi Arabia has started imposing sanctions on companies that have not constituted at least 7-8 per cent of their workforce with Saudi nationals as per the country's new nationalisation programme, according to a news report.

The Nitaqat programme was initiated by the Ministry of Labour to increase the number of Saudi nationals working in the private sector.

According to the Arab News report, the programme is being implemented alongside the new Hafiz system, which was also initiated by the Labour Ministry.

This programme grants every Saudi national looking for a job a monthly allowance of 2,000 Saudi riyals.

Private companies seeking to implement Saudisation to improve their Nitaqat status encounter major problems due to the simultaneous implementation of the two systems.

Saudis who get the allowance are unwilling to accept a job for 2,000 riyals or less, said the report.

The system categorises companies in three zones. In the first category, the so-called green group, are the companies that have succeeded in employing enough Saudis.

The yellow group faces a medium threat, while the red group is now under the focus of the Ministry of Labour and faces sanctions that include prohibiting them from obtaining new work visas, starting a new branch or transferring a non-Saudi to its sponsorship.

PTI

First Published: Wednesday, November 30, 2011, 11:10

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