Saudi Arabia’s Ministry of Labour said it rejected nearly 63 percent of work visa applications in 2016 as the kingdom prepares to implement new curbs on foreign workers later this year.
In its annual report, the ministry said it approved 316,212 work visa applications last year out of 849,228, according to the Saudi Gazette.
The kingdom is preparing to implement a new version of its Nitaqat grading program for companies from September 3.
Reuters reported in March that the system, which grants firms with higher ratios of Saudi workers preferential treatment, will be tightened with much higher ratios needed to receive the top 'platinum' category in some sectors.
Documents seen by Reuters showed construction firms with between 500 and 2,999 workers would need a 100 percent Saudi workforce to receive platinum. The same applies to the retail sector.
More than 60 industries are said to be affected by the changes.
A ministry spokesperson was quoted as saying the new system was aimed at improving market performance and creating more job opportunities for Saudis.
“We are trying to create a safe and conducive work environment and to put an end to unproductive nationalisation of jobs,” the spokesperson told the Saudi Gazette.
He added that small and medium-sized businesses would be divided into two categories under the new system.
Saudi Arabia aims to reduce unemployment among Saudis from 12.1 percent to 9 percent by 2020.
