In another major move to force private companies to employ Saudis, the Council of Ministers on Monday passed a law making it mandatory for firms seeking renewal of their commercial licenses to present Saudization certificates issued by the Labor Ministry.
“A Saudization certificate … shall be considered one of the main documents for applying for the renewal of licenses, opening or operating a firm, obtaining business visas and issuing commercial registrations for the branch of a firm that has failed to employ the required number of Saudis,” said the Cabinet chaired by Crown Prince Salman, deputy premier and minister of defense.
Labor Minister Adel Fakeih thanked the Cabinet for adopting this decision, saying it would encourage private companies to employ more Saudis. “The decision reflects the government’s desire to end the unemployment problem among the Saudis,” he added.
Fakeih said his ministry would coordinate with the relevant government departments to implement the Cabinet decision and establish electronic links with them to exchange information.
“The ministry is also studying a proposal on gradually increasing the cost of employing foreign workers, especially for companies that violate Saudization regulations, and another proposal to force violating firms to bear the cost of employing Saudis,” Fakeih said.
The Cabinet approved an amendment to the law governing the activities of the Human Resources Development Fund, saying its revenues would include fees received in lieu of services provided by the fund to the private sector to train citizens and replace foreign workers.
Referring to the business visas, the Cabinet said the labor and foreign ministries would set out a mechanism to prevent companies that failed to fulfill Saudization conditions from obtaining such visas. The new law bans small firms having nine or less foreign workers, without any Saudis, from having access to electricity.
“This Cabinet decision will definitely boost Saudization. It will have a big impact on small and medium enterprises run by expatriates,” said Ibrahim Badawood, managing director of ALJ Community Initiatives.
“The decision shows that the government wants the private sector to employ more Saudi workers,” Badawood told Arab News. “It will have an immediate effect on grocery shops that do not employ any Saudis. They will not get electricity if they fail to present Saudization certificates.”
He said the new Cabinet decision is in line with the Commerce and Industry Ministry’s campaign against cover-up (tasattur) businesses run by expatriates with the support of some Saudis.
The total value of cover-up businesses across the Kingdom is estimated at more than SR230 billion. Expatriates dominate about 90 percent of retail and wholesale markets in the country.
Renewal of license tied to certificate of Saudization
Renewal of license tied to certificate of Saudization
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Economic growth and resilience at heart of 2nd AlUla Emerging Market Economies Conference
- Event on Feb. 8 and 9 will bring together ministers, governors of central banks, policymakers, economic experts and international financial institutions
- Emerging-market economies a ‘pivotal element’ in global economic system due to effect they have on growth and stability, says Saudi Finance Minister Mohammed Al-Jadaan
RIYADH: The second annual AlUla Conference for Emerging Market Economies, which Saudi Arabia will host next week, offers a platform to exchange views on global developments and discuss policies and reforms that support inclusive growth and strengthen economic resilience, the Kingdom’s finance minister said.
The event on Feb. 8 and 9 will bring together finance ministers, governors of central banks and policymakers, alongside economic experts and representatives of international financial institutions.
Organized by the Saudi Ministry of Finance in partnership with the International Monetary Fund, it takes place as emerging-market economies face mounting challenges amid rapid global economic change.
Finance Minister Mohammed Al-Jadaan said the decision to host the conference reflects Saudi Arabia’s ongoing commitment to efforts that support global financial and economic stability, and highlights the growing influence of emerging economies on worldwide growth.
Emerging-market economies represent a “pivotal element” in the global economic system due to the direct impact they have on economic growth and stability, he added.
“The AlUla Conference for Emerging Market Economies provides a unique platform for exchanging views on global economic developments, and discussing policies and reforms that will support inclusive growth and enhance economic resilience, in light of broader international cooperation that contributes to confronting common challenges,” Al-Jadaan said.
Kristalina Georgieva, managing director of the IMF, said the event would help emerging economies deal with growing uncertainty driven by technological change, demographic shifts and geopolitical tensions.
“The AlUla conference provides a vital platform for emerging economies to discuss how they can navigate the risks and embrace the opportunities ahead,” she said.
“In these times of sweeping transformations in the global economy, policymakers face a more challenging and uncertain environment. Countries should work together to strengthen resilience through sound macroeconomic and financial policies.”
