Attempt for Saudiization in the contracting sector


 Riyadh - The Saudi Contractors Authority and the Human Resource Development Fund under the Ministry of Manpower and Social Development have launched a Saudiization project in the contracting sector. The effort is to Saudiize a few sectors of employment in collaboration with companies working in the contracting sector. Efforts are underway to fully review the statistics on contracting sector employees and Saudiize four sectors of employment. It is estimated that 30 lakh people are employed in the contracting sector. More than 90 percent of them are foreigners. 


The Human Resource Development Fund said the plan was to provide jobs in contracting companies for Saudi youth who are qualified in four jobs: supervisor, construction technician, space technician and road technician. It will train Saudi youth in these professions and nurture their skills through training centers approved by the Technical and Vocational Training Corporation. During the training period and after entering the job, the youth will be given career guidance through the scheme and will be monitored. The Human Resource Development Fund said that they will be provided training and employment in contracting institutions with the financial assistance of the Human Resource Development Fund.


In Saudi Arabia, the unemployment rate is 11.8 percent. A few days ago, the Ministry of Manpower and Social Development decided to implement 20 per cent Saudiization in the engineering sector. It will take effect from January 14. The new decision applies to all companies that employ five or more engineers. The minimum wage for Saudi engineers working in private companies should not be less than 7000 riyals for inclusion in the repatriation. 


In the first phase, the new decision aims to provide employment to 7,000 Saudi engineers. Twenty per cent Saudiisation will be made mandatory to provide employment to all indigenous engineers currently employed in the country. Currently, there are about 5,000 Saudi engineers. Twenty per cent Saudiisation will also be possible in the near future to provide employment to those who graduate with an engineering degree. The Ministry of Manpower and Social Development has stated that the Saudiization ratio applicable to private companies and institutions will increase each year according to the number of engineering graduates graduating each year. 


The Ministry of Manpower and Social Development will take disciplinary action against companies that do not implement a certain percentage of Saudiisation in the engineering sector. Penalties will be imposed, including suspension of online services to institutions. Saudi Arabia will enforce a number of penalties in the engineering workforce, including suspension of new visas in the engineering profession, ban on sponsorship change of foreign engineers, ban on change of profession, and suspension of issuance of new work permits to foreign engineers and renewal of work permits. 

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