11,000 Saudi firms closed down due to Nitaqat, finds study

Some 11,000 Saudi firms have closed down due to the implementation of Nitaqat program to support Saudization, according to a study conducted by Massachusetts Institute of Technology (MIT) which is participating in training Saudi workers online in coordination with the Ministry of Labor.

September 21, 2014

 


 


By Saleh Al-Zahrani 


& Abidah Al-Hussein


Okaz/Saudi Gazette


 


JEDDAH/JUBAIL – Some 11,000 Saudi firms have closed down due to the implementation of Nitaqat program to support Saudization, according to a study conducted by Massachusetts Institute of Technology (MIT) which is participating in training Saudi workers online in coordination with the Ministry of Labor. 


 


The closures occurred in 16 months since the beginning of implementation of the Nitaqat program in 2011, found the study, which said that during this period 96,000 Saudis were employed in the private sector.


 


Meanwhile, Director of the Information Center in the Ministry of Labor Tayseer Al-Mufarrij said employers cannot reduce a worker’s salary during his or her training period. Nitaqat has specified SR3,000 as the minimum salary for a male or female Saudi employee, according to the Saudization percentage. A Saudi employee whose salary is less than SR3,000 is not counted as one Saudi as regards the Saudization percentage in the firm.


 


Several Saudi women in a number of firms in Jubail have lodged complaints against their employers for salary cut during training.


September 21, 2014
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