The private sector has welcomed the issuance and renewal of new iqama and work permits for a minimum period of three months.

 The private sector has welcomed the issuance and renewal of new iqama and work permits for a minimum period of three months. Businesses and economists say the new service will bring much relief to the private sector. The new service offers six consolations for companies that rely heavily on foreign workers, such as businesses and contracting firms.

The new service will enable private companies to manage cash flow more efficiently. The new service will also help reduce negative tendencies such as delay in payment of wages and delays in project completion. Industrialists and economists also demanded that arrangements be made to pay old arrears of the levy in similar installments. Under the new system, iqama and work permits can be renewed for a period of three months, six months, nine months and 12 months and the levy and fees can be paid proportionately.

Osama al-Afalik, a contractor and businessman engineer, said they had previously been asked to provide facilities to pay the levy in installments. I would like to thank the concerned departments for facilitating the renewal of iqama and work permits for a minimum period of three months and levying levies and fees accordingly.

The new service will greatly benefit all private sector companies, including those that rely heavily on foreign workers. Currently, the levy on renewing a work permit is 9,600 riyals a year. An organization with many employees will have to find a huge amount of money to renew a work permit. This is a heavy burden for institutions. It is very comforting for the institutions to have the facility to divide and pay this amount.

The new service will also help to avoid problems that may arise due to workers' absconding and the desire to change sponsorship. Huge arrears of levy items have accumulated on many private companies and institutions. This arrears should also be included in the scope of the new system so that it can be paid in installments. Among these, many companies and institutions are facing the problem of non-receipt of arrears due to implementation of government schemes. Engineer Osama al-Afalik said arrangements should be made to pay the old levy arrears in installments so that the new concessions can be availed of.

Industry leader Saud Almarzouki said the new service would play a major role in improving working conditions in the private sector. The new service will enable companies and institutions with large numbers of foreign workers to manage cash flow and make the best use of cash flow without stress.