Recruitment offices in the Eastern Province have agreed to establish a joint venture – a mega recruitment firm – by the name of ‘Sharqiya Recruitment Company'. The capital of the company has not been decided yet but it will exceed SR100 million, as required by the new Ministry of Labor regulation. The recruitment committee at Sharqiya Chamber of Commerce and Industry (SCCI), headed by Muhammad Al-Muhamadi, will be responsible for conducting a feasibility study, determining the number of shareholders of the company and completing the legal procedures for setting up the company. The prospective owners and shareholders of the company have paid the first installment of the capital and have said that the company will start business in four months, according to a report in Al-Hayat newspaper. “Each member will have the choice to decide how much he will pay for the company's capital. Over SR100 million will be collected from the members of the recruitment company. The company's work will include hiring labor and housemaids for public and private sectors,” sources told Al-Hayat. The shareholders unanimously agreed that the company will not focus on housemaids and drivers only, but also on recruiting labor for public and private sectors. The recruitment company will be managed by a 100 percent Saudi workforce, the report said. Owners of recruitment firms must gather SR50 million to provide housemaid services and SR100 million to offer labor services to public and private sectors. A source said that if the company is not able to come up with the required capital, shareholders from the non-recruitment sector will be allowed to be partners in the company. As per regulations, five recruitment companies should be set up all over the Kingdom within six months and the owners of the companies should be from the recruitment sector. The companies should start their business activity within one year of obtaining licenses. The Ministry of Labor may give a six-month grace period based on the labor minister's decision.
