Saudi Arabia Bans 107 Firms From Employing Foreign Workers

Posted on April 1, 2007

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Samir Al-Saadi, Arab News

JEDDAH, 1 April 2007 — The Ministry of Labor has warned employers that it is serious about Saudization and has banned 107 companies from recruiting foreign workers because they have failed to meet Saudization targets. Twelve of the 107 companies had a zero percentage of Saudization and only eight of the companies reached 1 percent.

Sulaiman Al-Misyadi, general manager of Fares Bundugji Establishment, one of the 107 companies, welcomed the ministry’s push for Saudization but said one of the reasons his company had been banned is that their core business is in cleaning and that very few Saudis are interested in such jobs. He said a large number of Saudis had applied for jobs and been employed as supervisors but that most of them then left after a short time in search of new careers. […]

The official unemployment rate among Saudi men is put at nine percent and among women at 22 percent. The CIA Fact Book cites local bank estimates that put the unemployment rate at 13 percent among Saudi males. According to some estimates, it is as high as 25 percent. The figures are for 2004. [More]

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