RIYADH: Businessmen here are still unclear about the proposed new zones system introduced by Adel Fakieh, Minister of Labor, to be implemented on June 8. The system is an attempt to deal with foreign recruitment and unemployment in the country. Saad Al-Mogil, Deputy Chairman of the Chamber of Commerce and Industry in Riyadh, said their meeting with Fakieh failed to answer questions they had about the new system. He said businessmen are eagerly awaiting the application of the new system so that they can see its merits and demerits and determine its practicality. Al-Mogil called on the ministry to apply the new system in stages. “Unemployment is a big national problem and can only be solved in reconciling the private and government sectors. It should be understood that the unemployment problem is a common national concern.” He emphasized that businessmen should cooperate fully with the ministry to solve this critical problem. He said businessmen will not hesitate to approach the minister to inform him about difficulties they face with the new system. “The ministry should not be too demanding and companies and establishments should work in good faith to achieve this national goal.” He hoped that the plan would help increase training for Saudi jobseekers because this will make it easier for them to be employed. Dr. Fahd Bin Juma, a prominent Saudi economist, was critical of the system, saying it will never serve the Saudi economy or reduce unemployment. “The system will result in several companies shutting down and pulling out of the market. It will increase inflation and unemployment. Saudis won't accept jobs like tea boys, plumbers, carpenters and drivers. Therefore, the industrial and government sector should be developed further because most Saudi jobseekers eye these sectors.” He said small- and medium- sized businesses are weak and their contribution to Gross National Product is not more than 28 percent. According to reports, the zones or “Nitaqat” system, will see private companies and establishments classified into 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 ministry expects the system to completely wipe out black market in visas where foreigners run businesses using Saudis. Companies in the yellow category that do not fulfill Saudization conditions, should correct their status in order to get the iqamas of their workers renewed. The iqamas of those foreign workers in red category companies will not be renewed at all, irrespective of the years they have spent in the Kingdom. The new Nitaqat system allows for the renewal of iqamas without any condition for expatriates who work in companies in the green and excellent category. The new measure would not apply to house servants as their iqamas would be renewed automatically.
