Saudi, Kuwait slaps local quotas, a cause of worry for expats

Riyadh - 13 June 2011: Saudi Arabia has imposed new quotas on companies in the kingdom to employ local staff, with cuts in permits for foreign workers if they fail to comply, even as Kuwait plans residency caps on expatriates to bring down their number in the country to 45 per cent of the population.

The Saudi Labour Ministry on Saturday launched the latest stage of its "Nitaqat" (Ranges) programme aimed at prodding local firms to employ Saudis as the oil-rich kingdom battles unemployment among its largely young population.

From September 10, the new programme will determine whether companies - according to their sector of activity and size - are entitled to employ foreign workers depending on their performance in abiding by the quotas.

Banks with a workforce of up to 500, for example, would need a Saudi workforce of at least 49 per cent. Those in the wholesale trade with the same number of staff have to employ a minimum of 19 per cent of Saudis, with the same quota applied to media, insurance and government schools.

Officials put the unemployment rate at 10 per cent. But the figure jumps to around 30 per cent among women, who are excluded from jobs in many sectors under the strict rules of segregation in the kingdom.

The population of Saudi Arabia surged last year to over 27 million, more than 30 per cent of them expatriates.

Residency cap in Kuwait

Meanwhile, Kuwait is planning to introduce residency caps on foreigners to bring down their number in the country to 45 per cent of the population, reported 'Gulf News'.

According to the 2010 census, expatriates make up 69 per cent of population while Kuwaitis only 31 per cent.

"The government will suggest imposing a cap of six years on unskilled labourers, eight years on semi-skilled employees, ten years on semi-skilled employees who are with their families and 12 years on skilled employees. Foreigners with rare expertise will be given an open stay," a source told 'Annahar' daily.

The proposal to limit the number of foreigners will be submitted by a committee made up of representatives from the ministries of interior, foreign affairs, social affairs and commerce as well as from the Supreme Council for Planning and Development, the daily said on Sunday.

Violators of the residency caps, both individuals and companies, will be prosecuted under the government's proposal.

source: GN