From your blogspot on website, your descriptions regarding Saudi Labour Law are very helpful to understand. My name is Jin who works for Hanwha Engineering & Construction company in South Korea, Plant Proposal Team. Recently I have searched for Saudization rate specified in the law but there is nowhere to be found in Saudi Labour Law. Hanwha E&C is in difficult to confirm prior to contract with our owner. In my understanding, Saudization should meet 5% or 10% of total manpower during the execution of construction period. In the other hand, it could be differed depending on area, project, business etc. My concern is about the rumor of Saudization that was spreaded and vague to sustain. If you are available to advise me Saudization on a legal basis in the construction field, please make it clear to understand.
Every country is duty bound to provide employment to its citizens. Saudi Arabia’s unemployment rate stood 8.2 % in 2000 and climbed to 10 % in 2010. 60% of the Saudi population is under the age of 25. Number of Saudis employed in private sector does not exceed 800,000. At the same time around 60 % of the workforce in Saudi Arabia is made up of expat workers. The Kingdom’s natural desire and ultimate goal is to successfully implement Saudization with much of its foreign work force with Saudis to resolve a growing unemployment problem.
Saudization is a very vague area in Saudi labor law. Only few Articles in Saudi labor law explain this subject. Article 3 significantly gives a clear direction that, ‘Work is the right of every citizen. No one else may exercise such right unless the conditions provided for in this Law are fulfilled. All citizens are equal in the right to work’.
The law says in Article 26 (1) that ‘All firms in all fields, and regardless of number of workers, shall work to attract and employ Saudis, provide conditions to keep them on the job and avail them of an adequate opportunity to prove their suitability for the job by guiding, training and qualifying them for their assigned jobs’.
Article 26 (2) clearly explain percentage of Saudization. It says, ‘The percentage of Saudi workers employed by the employer shall not be less than 75% of the total number of his workers. The Minister may temporarily reduce this percentage in case of non-availability of adequate technically or academically qualified workers or if it is not possible to fill the vacant jobs with nationals’.
The above mentioned clause was the loop hole in this law. This Article gives a blanket authority to the Labor Minister to reduce the percentage of Saudization in certain circumstances, i.e, in case of shortage of qualified employees required by companies. As per Ministers decision companies and firms have been asked to Saudize at least 30 % of their jobs while contractors and operation and maintenance firms should have 10 % Saudization.
On 2 April 2006, Ministry of labor reduced Saudization rates for certain categories of jobs from 30% to 10 % after noticing that qualified Saudis not available for those jobs. This decision comes after many businessmen had complained that they had compelled to stop their businesses because of non availability of adequate number of Saudi workers to comply with Saudization regulations and not receiving visas to recruit foreign manpower required for their activities. That decision covers jobs at bakeries, aluminum works, mechanical works, tailoring shops, black smithy, carpentry, auto workshops, laundries, farms, agricultural and animal projects, land transport, driving trailer trucks and other heavy vehicles, gas stations, pharmacies and optical centers. However administrative, financial and receptionist jobs at the above workplaces must be filled by Saudis. If any Saudi intended to work in these categories, he should be given preference. If companies and shops deny Saudis jobs will not get visas. There has been 100 % Saudization of Radiology jobs at all Ministry of Health hospitals and clinics. Saudi E-Government National Portal provides latest information in regard to the minimum ratio of Saudization that, "The establishment or company should have achieved the required rate of Saudi employees as per business: 1. 10% for contracting, operation & maintenance, cleaning sectors and fish and poultry projects 2. 20% for other businesses" As per my understading, the Saudization ratio for a company according to their employee strength is:- 1. 10 or less employees, there must be 10 % Saudis 2. Between 10 and 50 employees, 20 % Saudis. 3. More than 50 employees, 30 % Saudis. Article 33 Clause (2) impose some restrictions and conditions on a non-Saudi worker to get work permit from the Labor Ministry, it says, He possesses the professional and academic qualifications which the country needs and which are not possessed by citizens or the available number of such citizens is insufficient to meet the needs, or that he belongs to the class of ordinary workers that the country needs’. The word "work" in this Article means any industrial, commercial, agricultural, financial or other work, and any service including domestic service. Punishment is mentioned in Article 230. It says ‘A fine of not less than three thousand riyals and not more than ten thousand riyals shall be imposed on any person who violates any of the provisions related to the vocational preparation of Saudi workers to replace others, as provided for in this Law and the decisions issued hereunder’.NEW SAUDIZATION PROGRAM Businessmen in Saudi Arabia are eagerly waiting for the new Saudization program. They are expecting it within two weeks. Because after Jasmine Revolution and the subsequent unrest in Arab countries, Kingdom of Saudi Arabia also giving extreme care on Saudization issue. Saudi government is currently engaged in developing a packaged plan for effective implementation of the Saudization program in private sector companies, organizations and other entities. The labor Ministry will announce its new Saudization plan within two weeks. The plan is being prepared following a Royal decree issued by Custodian of the Two Holy Mosques King Abdullah, which called for intensive efforts to solve the countries unemployment problem immediately. This upcoming plan including the mechanisms to enforce Saudization and punishments for companies which show negligence in implementing the Saudization plan. The plan could prevent defaulters from recruiting foreign workers once and for all; their license may not be renewed and would be denied the Ministry’s services. At the same time, the companies that cooperate with the Saudization plan would get more benefits and incentives from the Government. Every three months the Labor Ministry has to send a report to the King in regard to the companies that cooperate with the Saudization plan and those who did not. The Ministry also thinking of imposing more restrictions on foreign recruitment by classifying and naming jobs in accordance with specialization required. It will also revise salaries being paid to Saudis considering their qualifications and experiences. Companies that employ more Saudis will be given preferences to bid for government contracts. Plans are also under way to provide special training to newly employed Saudis to enhance their efficiency. If you are not still contracted with owner, it is better to wait two weeks to know the exact position of Saudization otherwise contact concerned labor office.
