Saudi Plans to Slap 6-yr Cap on Expat Workers


Saudi Plans to Slap 6-yr Cap on Expat Workers

Dubai, May 31 (PTI): Saudi Arabia may soon impose a six-year cap on the residency of foreigners in the country as part of its programme to regulate the local labour market — a move likely to affect a large number of Indians working in that country.

Companies hiring expatriate workers will be given five months after the implementation of the labour reforms programme to regularise their situation, the country's labour minister Adel Al Faqih said.

The reforms will also help tackle the black market for employment visas to the rate of 99%. The ministry would go ahead with the programme and that there would be no leniency in its application, Al Faqih said, according to Saudi daily Al Watan.

The reforms, he said, will aim to boost employment opportunities for Saudis and increasing competitive edge among them.

Gulf countries have raised this issue on several occasions but have had limited success in implementing them. The number of Indian workers in Saudi Arabia is likely to exceed two million by year's end.

  

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Comment on this article

  • Eng. Nayeem Azimi, Riyadh

    Thu, Jun 02 2011

    I do agree with stevie cooments (Sharjah).

    DisAgree Agree [1] Reply Report Abuse

  • Jamal mittur, Riyadh

    Tue, May 31 2011

    Allah Kareem

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  • ISMAIL K PERINJE, PERINJE/YANBU-KSA

    Tue, May 31 2011

    'Mannina Makkalu' rightfully the hiers of the job market in gulf countries but the problem is failure of the govt to creat right set of educational systems in the respective countries.

    The senario and context of the unclear legislation are clearly narrated by GMGC MANGALORE/KSA.

    This time around I am totally differ with SHAHNAWAZ Kukkikatte for his generalising bad people by nationwise!Every nationaality has good & bad and bad people and every community has good and bad people also.

    This legislation still in it's infantry stage and aimed @ nationalising jobs for it's citizens which is a serious problem and which also needs solution in war footing.It is unlikely take off as sheduled and I think the mission is not imposibble but bit difficult.

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  • vinod wilfred tauro, Madanthyar, Dubai

    Tue, May 31 2011

    Your comments about this Saudi is 100% right, th.ese new decrees has come several times and gone to scrap, but nothing has changed in Saudi except few liberal changes happened recently.
    Let us hope for a change.

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  • John Crasta, Hemmady/Kundapur

    Tue, May 31 2011

    What GMCC wrote is correct, this will apply only for the companies, which will not follow saudization policy, not for all companies. All Saudi people knows the importance of skilled workers

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  • Santhosh Bhandary, Mangalore

    Tue, May 31 2011

    It is the need of the hour for Saudi govt. At this stage they cannot take a risk and have to keep their citizens happy and avoid getting into trouble like other arab nations. As per the Saudi labour minister the decision has been taken after long deliberations and there no going back on the same and it will be implemented in phases. It will definitely take sometime before it is fully implemented. India is progresssing like never before and Indians can find employment in the country itself. The blue collar sector is not a privileged lot and they undergo lot of hardship working in the gulf and their reward is not at all proportionate and finally they end up with no savings at all. Thie new rule will not affect the blue collar jobs as Saudis can and never work in that sector. Neither they can work in skilled segment which means only the semi skilled labour force from Asean countries will be affected. The only thing to be noted is that the same person may not be allowed to continue beyond 6 years. However it is too premature to think or discuss on the subject as it will be a long time when it really comes into force.

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  • stevie, Sharjah

    Tue, May 31 2011

    Indian communities and government authorities should not worry on this cap in labour market why?
    1. You got opportunity to refurbish Indian labours and their talents mixing these skilled lobours .
    2. These are the assets of constructing future India.
    3. These labours will satisfy the current labour market demand in India.
    4. Economy wise India can put fresh and restricted migrant procedure pressure on GCC for Indian Skilled workers.
    5. By creating this situation in GCC, many Indians will now opt for settling down in India and further business expansion or investments will be ceased by many countries.
    After all it is a setback for GCC not for India at all.

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  • mohammed, saudi

    Tue, May 31 2011

    i dont think these will happen b/coz there need indians at any cost that to experince one, just pray nothing elss we can do

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  • William, Mangalore, Dubai

    Tue, May 31 2011

    I agree with Mr. Shahnawaz Kukkikatte, Dubai, Udupi.

    DisAgree Agree Reply Report Abuse

  • jacobnelson, mumbai

    Tue, May 31 2011

    good moove because many multinational companies start their business where man=power is available = India.
    if no freedom to chose your own man power when you do the investment then you choose where to start the business.
    easy to impliment but it will not work out.

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  • R.T.Shetty, Kundapur/Doha

    Tue, May 31 2011

    Iam sure they have thought about, economic, social and replacing trained skilled staff n labor problems .This decree if comes in to effect will sure benifit India in long run since thier skilled manpower will be back home and contribute to its development.

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  • ashraf, puttur

    Tue, May 31 2011

    Sure saudi govt. will start act on it. but they will face great havoc in man power sector. at the bigining only they will be forced to withdraw the law from their citizens only. before revoke the law 10 % of un fortunate poor exp. workers might ne gon from saudi. others will enjoy with better opprtunities.

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  • Ryan Saldanha, Mangalore/Singapore

    Tue, May 31 2011

    Before 2008 Recession hit the middle east, most of the sectors like Banking, Insurance, Investments and Oil had reservations for the local population in most of the GCC countries,as they were well paid, minimum working hours and 5 day week jobs. Since markets have collapsed and unable to recover in almost 3 years, its difficult for these countries to sustain local employment, as they arent qualified as an expat or willing to work for the salary offered to an expat, so in short, high salary and low productivity will only affect the bussiness of this region,

    Only Dubai to some extent is trying to explore non oil revenue, whereas countries like KSA, Kuwait, Qatar are heavily depended on energy revenues, accounting for over 90% of their economies. Oil being a natural resource will dry up one day, probably not during our life time, but with countries pressing for alternative sources to oil, it may get difficult for the arabs and other expats in these countries, "What goes around comes around". They have travelled from the Camel to the cadillac,if not foresighted will again be seen on camel backs...........

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  • Jaimini P.B., Manipal

    Tue, May 31 2011

    Mr.Abraham has very clearly commented about the subject.One more thing to add..if locals are recruited, they will not work for small salary like Indians and most important point is that of QUALITY of work. Indians are the CHEAPEST & THE BEST.

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  • GMGC, Mnagalore / Dhahran, K.S.A

    Tue, May 31 2011

    Gentlemen,
    The news narrated above is incomplete.
    According to reliable Govt sources here,all that the minister focused on was his ministry's "Nitaqat" program, which is expected to be applied in two weeks.
    Under this program, private companies and establishments will be classified across three colors —green, yellow and red — according to the number of Saudis they employ.
    The green companies will be given a number of advantages, including recruitment of manpower from foreign countries and the transfer of employees in the yellow and red categories without their companies' consent.
    The proposal does not limit the inflow of expatriates. Once the six years are over fresh expatriates will be able to work in Saudi Arabia hence the problem is not solved as the inflow of expatriates is not limited, and dependence on foreign labor will continue. The economy also could benefit by having highly trained and experienced expatriates stay in Saudi Arabia as they contribute to the economy given that it is already challenging to attract good expatriates into the Kingdom.
    Morover, good companies are always green and faithfully adhere to Saudization policy. Only those which are in the red and yellow need to be cautious and that is also justified in form the Kingdom's perspective.
    I kindly request the media not to propogate incomplete (which sometimes becomes inaccurate) new which may be misleading and cause panic and unnecessary rumours in people's minds.

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  • Abraham Coutinho, Mundkur/Bombay

    Tue, May 31 2011

    It may not be a complete success. Saudi's idea is to curtail the black marketing of employment visa.

    When it was difficult to enter Saudi for white color job on such visa, the other way found is to go there in Labour Visa and work in Air conditioned offices which now Saudi wants for their children. This is Saudi's idea.

    Of course, they will not work in the hot sun. It will be done by ex-partriates/Indians only.

    The Rest, like Doctors, Nurses, Engineers, C.As, Teachers etc, shall not be affected. If they are deported, Saudi shall face problem. To deport this category the Saudi first have to educate and train their children in this feild. Then they can think otherwise.

    In one of the Gulf countries the King passed Decree(order)that Petrol Pump workers should be his citizens only. Ex-partiates were removed. Jobs given to natives. But they could not work filling the Petrol in hot sun. They left the job. Then the King reversed his order. Indians were back again. However, similar order for Taxi Driving Licence was successful. Because there is A.C in it. For total transition it takes a long time.

    For Saudi now it is initial step. First to control black market visa racket. It will work out to some extent and many Indians shall come back.
    Now Saudi younger generation is reported to be the frustrated lot.In order not to revolt, this young generation should be employed else the recent revolt shall come in Saudi also. That is it. That is why this initial step.

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  • Hafeez, mehraj.Manglore

    Tue, May 31 2011

    impossible,become regulation only dreams,insha allah india our great

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  • MOHANDAS KUMAR, Kankanady,Mangalore

    Tue, May 31 2011

    NAMMA MANEYA GANJI OOTA....BETTER.

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  • Calvin, Surathkal/USA

    Tue, May 31 2011

    Current unemployment rate in Saudi is 10.5%. Their outdated education system is the root cause.

    DisAgree Agree Reply Report Abuse

  • Mark Lobo, Manglore - Dubai

    Tue, May 31 2011

    You are right EDWARD, MANGALORE even the scale of expenses are high in INDIA our SALARIES does not matches to new generation in india even the expenses level in INDIA are high which we cannot bear in the time of our vacation pocket empty return back to GCC..........for us particularly there is no hope in GCC and in INDIA.

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  • Shenoy, Mangalore

    Tue, May 31 2011

    Impact and consequences need to be considered before taking any decision.

    DisAgree Agree Reply Report Abuse

  • Malcolm Braganza, Kundapur / Bahrain

    Tue, May 31 2011

    The answer is at the end "Gulf countries have raised this issue on several occasions but have had limited success in implementing them"

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  • EDWARD, MANGALORE

    Tue, May 31 2011

    DEAR FRIENDS THESE DEVELOPMENTS ARE EXPECTED, AS REVOLUTION STARTED ALL OVER THE WORLD, STARTING FROM AFRICA & MIDDLE EAST, AS NEW GENERATION TAKING OVER CHARGE FROM OLD GENERATION. SEE WHAT IS HAPPENING IN INDIA FOR THE CORRUPTION. SO MY DEAR NRIS IN ENTIRE GCC, PLEASE PLAN YOURSELF AS DAYS ARE NUMBERED & THERE IS NO HOPE / FUTURE IN GCC. GOD BLESS YOU ALL.

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  • santosh, Bangalore

    Tue, May 31 2011

    Hey!

    I don't think that will work for another 10 years.

    Let's wait and see.

    DisAgree Agree Reply Report Abuse

  • HENRY MISQUITH, Bahrain

    Tue, May 31 2011

    This type of labor reforms will definetly harm the competetive edge of companies working in the Kingdom of Saudi Arabia.
    Henry Misquith

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  • Sunil Kumar, Kakarla/Qatar

    Tue, May 31 2011

    Impossible! They will suffer.

    DisAgree Agree Reply Report Abuse


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Title: Saudi Plans to Slap 6-yr Cap on Expat Workers



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