Calling it by its name? Saudi shoura council calls nitaqat system a 'failure'
The Nitaqat system, a scheme that penalises companies based on the percentage of its expatriate employees
Click here to add Fahd bin Juma as an alert
Disable alert for Fahd bin Juma,
Click here to add Human Resource Development Fund as an alert
Disable alert for Human Resource Development ...,
Click here to add Saeed Al-Asheikh as an alert
Disable alert for Saeed Al-Asheikh,
Click here to add Saudi Arabia’s Shoura Council as an alert
Disable alert for Saudi Arabia’s Shoura Council,
Click here to add Shoura Council as an alert
Disable alert for Shoura Council
Saudi Arabia’s Shoura Council members have criticised the labour ministry’s Nitaqat programme and said that it has failed to reduce the rate of unemployment among citizens.
“Companies manipulate the system to give the impression that they have helped Saudis get employed,” Saeed Al-Asheikh, a member of council was quoted as saying in Arab News.
He also said that the Human Resource Development Fund’s (HRDF) achievements have been unsatisfactory.
“Unemployment rates rose to 12.5 per cent in 2012 despite huge amounts of money (SAR12 billion) invested with the fund,” he said.
The HRDF is an independent body that was established by the government to facilitate the employment of Saudis into the country’s private sector.
Another Shoura Council member, Fahd bin Juma, said that benefits of the employment programme are heavily concentrated on major cities and are yet to trickle down to smaller cities.
The council members have also said the fund’s investments, which exceeded SAR12 billion, have provided poor returns.
The HRDF has spent around SAR90 million on plans and studies, according to Arab News.
Juma said in an interview with Al Arabiya last year that Nitaqat’s existence is important but not sufficient to create employment among locals.
“These jobs are always there for Saudis anyway, and they don’t desire them.”
The Kingdom’s official unemployment rate is said to be around 11.8 per cent, but economists estimate that only 30 to 40 per cent of working-age Saudis hold jobs or actively seek work.
Nearly one million foreign workers, out of roughly nine million, are estimated to have left the Kingdom from March to November 2013, due to the non-renewal of visas and a crackdown on illegal workers. The initiative reportedly resulted in the creation of 600,000 jobs for Saudi nationals.
Saudi Arabia recently announced a decision to penalise companies that practice fake nationalisation to avoid being charged under the Nitaqat system.
© Motivate Publishing. All rights reserved.
- Al Tayer bucks the US department store trend with Bloomingdale's Kuwait opening
- Gulf Islamic banks set to outperform conventional banks for second year: Moody's
- Jordan secures EU finance for socioeconomic and environmental programs
- Same-day service deliveries in GCC an untapped market: Wing CEO
- Will terror attacks damper Arabs' appetite for European holidays?
- 'Welcome' to stay: Saudi Arabia says it wont limit stay of expats
- Saudi Arabia to launch system to ensure success of 'Saudization'
- UN Human Rights council gives Saudi seat despite recent violent crackdowns on foreign workers
- The Saudi Files: Embarrassing intelligence details are leaked online
- Executive calls for supporting Saudization even if it 'impacts businesses negatively'