RIYADH: In a push towards digitalization, Saudi Arabia’s Ministry of Human Resources and Social Development has approved the adoption of a digital service for the documentation of contracts in public entities.
The aim of the service is to monitor the localization of employment and maintenance contracts in public entities under the Labor Localization and Maintenance Initiative, the Saudi Press Agency reported.
The initiative wants to raise the nationalization rates in public entities in addition to increasing the efficiency and skills of Saudis.
The new facility comes as part of a series of electronic services provided by the ministry through the Qiwa platform, which is designed to enhance digital practices in the sector.
The platform serves as the main interface for the labor sector and aims to organize and monitor all transactions between various parties in the system, including employees, government, and private establishments.
The recent decision regarding the Labor Localization and Maintenance Initiative will have a broad impact, encompassing all establishments that have contracts with government entities or where the state holds a stake of at least 51 percent.
The decision applies to various sectors, including employment and maintenance, city cleaning, road operation, catering services, and IT operations.
To comply with the decision, establishments with employment and maintenance contracts with public entities are required to upload contract data onto the Qiwa platform using the dedicated Labor Localization and Maintenance Contracts service.
The implementation of the decision will occur in three stages, taking into account the size of the establishments involved.
The first stage starts on Dec. 1, 2023, for large establishments. The second stage will begin on June 1, 2024, for medium-sized establishments, while the third stage will apply to all other establishments starting from Dec. 1, 2024.
During the Saudi Economic Association Conference in May, Saudi Minister of Human Resources and Social Development Ahmed Al-Rajhi stated that the Kingdom has helped provide job opportunities to over 500,000 Saudi nationals in the private sector since 2019.
The minister added that the goals of women’s empowerment initiatives, which were scheduled for 2025, were achieved in 2022, with female participation in the workforce now reaching 36 percent, ahead of the 2030 target of 30 percent.
