Saudi construction representatives build case for reprieve on expat workers’ fees

The issue has been transferred to related authorities for review. (AFP)
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Updated 18 December 2019
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Saudi construction representatives build case for reprieve on expat workers’ fees

  • Representatives of the sector have reportedly received assurances from the authorities over the fees

JEDDAH: Saudi Arabia’s construction sector is hoping to win an exemption from expatriate workers’ fees following a review that gave the industrial sector a five-year reprieve from the levy.

Representatives of the sector have reportedly received assurances from the authorities over the fees, which are imposed in a bid to “Saudize,” or nationalize, jobs in the Kingdom. 

Zuhair Zahran, an investor in the contracting sector and a member of the Jeddah Chamber of Commerce and Industry’s construction committee, told Arab News that the sector has received promises from the Ministry of Commerce and Investment that it will review
“expat fees.”

The issue has been transferred to related authorities for review and “we are hoping for a positive outcome,” he said. A review in the industrial sector has led to an exemption for five years. “That is something positive, and we hope to see the same thing applied to the construction sector,” he added. 

“The construction sector is suffering the most,” Zahran said.

“The main goal of imposing expat fees is to Saudize jobs. But it is difficult to Saudize this sector, unlike many other sectors. The construction sector is the only sector that relies on expat workers and it is nearly impossible to Saudize it.” 

Zahran said that the average worker’s salary in the sector ranges from SR1,000 ($270) to SR2,000 per month. “No Saudi youth will accept work for less than SR3,000. There is no way to Saudize professions such as a plumber or carpenter, where up to 90 percent of the workers are expats,” he added.

 He said that the cost of each worker has reached up to SR9,800 per year before their salary, housing and Iqama transfer fees were taken into account. Contractors in the industry also face difficulties because projects are seasonal, Zahran said.

“Each contractor handles a project for one year in a specific city, then has to move to another city when the project is completed. In this case they are forced to relocate the workers. Is there any Saudi worker who likes to travel from one city to another every now and then? That is why it is very difficult to Saudize this sector.”

Saudi Minister of Commerce and Investment Majed Al-Qasabi told a recent gathering in Riyadh that a review on all fees, including expatriate workers’ fees, will be submitted to the relevant authorities.

He said that the ministry’s mission is to facilitate procedures and strengthen investment, and highlighted the role of the chamber of commerce in eliminating obstacles in the business sector. 

Al-Qasabi said that the government will continue to review and improve systems and procedures in order to create more investment opportunities.


‘A goal scored. A performance seen. A moment shared.’: How ‘play’ is at the heart of Qiddiya City’s vision

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‘A goal scored. A performance seen. A moment shared.’: How ‘play’ is at the heart of Qiddiya City’s vision

  • Morgan Parker of Qiddiya Investment Company spoke to Arab News about the integrated city cenetred on sport, entertainment and culture

RIYADH: About 40km outside Riyadh, a new city is taking shape, guided by a long-term urban vision that places people, experience, and quality of life at its center.

Qiddiya City will span more than 360 square kilometres (three times the size of Paris) and is being developed as a fully integrated city centered on sport, entertainment, and culture. It will be home to more than 500,000 residents, welcome millions of domestic and international visitors annually, and support more than 200,000 jobs in leisure, tourism, creative industries, and business.

But for Morgan Parker, vice chair of the management committee at Qiddiya Investment Company, the ambition of the city is best understood through a single idea.

“At its heart, Qiddiya City is about play,” Parker said on the Flavors of Ambition podcast. “Not just entertainment but play as something deeply human, something that drives wellbeing, creativity, and connection.

“Some of the most powerful memories in life are experiences. A goal scored. A performance seen. A moment shared with others.”

Qiddiya City, he explained, is designed to create the conditions for those moments to happen at scale, and over generations.

“Imagine a whole city dedicated to facilitating those experiences,” Parker said. “That’s what we’re building.”

Six Flags Qiddiya City is now open, featuring 28 rides, including the world-record-breaking Falcon’s Flight, set dramatically against the Tuwaiq cliffs. Aquarabia, the region’s largest water theme park, is scheduled to open soon, alongside world-class film studios and the Sir Nick Faldo-designed Qiddiya City Golf Course, built around an inclusive “three sixes” format designed to lower barriers to participation.

Major sports infrastructure is also advancing. The Speed Park Track, a landmark motorsports facility, will host global racing events including a Formula One Grand Prix, while a state-of-the-art horse racing venue is under development.

The Prince Mohammed bin Salman Stadium will stage top-tier football and entertainment events, including matches at the 2034 FIFA World Cup. Elsewhere, a world-first gaming and e-sports district is set to redefine one of the fastest-growing global industries.

Beyond attractions, Qiddiya City is being developed as a real place to live. More than 20 neighbourhoods will offer apartments, townhouses, villas, and branded residences, supported by more than 30 educational facilities, world-class healthcare, 120-plus hotels, vibrant retail streets, and a connected business hub.

“This is the chance to do something that isn’t encumbered by legacy,” Parker said. “So many great cities around the world are constantly having to reinvent themselves around their own histories. Here, we can plan a city from scratch, using everything we’ve learned over millennia, and everything we’ve learned in the digital age, and bake that into the blueprint from day one.”

Rather than retrofitting solutions later, sustainability, smart-city technology, mobility, and lifestyle considerations are embedded from the outset. This includes future high-speed rail connectivity linking Qiddiya City to King Salman International Airport in about 30 minutes and to KAFD in 17 minutes, alongside a dedicated metro line with eight stations.

One of the most common questions Parker is asked reveals a basic misunderstanding of what the city is intended to be: when will Qiddiya City be finished?

“I always answer by asking where the person is from,” he said. “London? New York? Dubai? And then I ask: Is that city finished? They don’t finish. They reinvent themselves. They adapt to society’s needs.”

That thinking, for Parker, shapes how Qiddiya City is being built.

“This is not a project,” he said. “It’s an initiative. What I like to call a ‘giga-initiative’. Projects have an end date. Cities don’t. Qiddiya City is being designed to evolve over generations.”

Historically, cities were defined by geography — ports, rivers, trade routes — and built around the exchange of goods, services, or finance. Qiddiya City represents a different model.

“This is a new genre of city,” Parker said. “One that isn’t centered on trading goods or finance, but on trading experiences.”

As global mobility increases, Parker believes the most successful cities will be those that are deliberate about what they stand for.

“It’s OK not to be everything to everyone,” he said. “The places that thrive are the ones that double down on what they do best.”

For Qiddiya City, that focus is clear.

“New York is known for finance. Paris for art and culture. San Francisco for technology,” Parker said. “Qiddiya City is positioning itself around experiences. If you work in sport, entertainment, or culture, why wouldn’t this be a place where you create, innovate, or bring your team?”