RIYADH — The balanced (Mawzoon) Nitaqat system, which comes into effect on Dec. 11, 2016, will put an end to the dominance of expatriate workers in critical jobs and bring down the unemployment rate, said Deputy Labor and Social Development Minister Ahmed Al-Humaidan. Addressing a press conference, he said: "The revised system will also improve the job market situation, raise the quality of employment, generate suitable jobs for Saudi men and women, create a secured and attractive working environment and end unproductive Saudization." "The new Saudization system comes in line with Vision 2030. It will realize the objectives of the National Transformation Program," Al-Humaidan said while expressing his deep concern over the growing unemployment rate in the country. He emphasized the need to address the issue of expats occupying important jobs, falling productivity of the job market, low participation of women and the gap between academic courses and job market requirements. "We'll take quick measures to address job market challenges," he added. Al-Humaidan said the Mawzoon system aims at qualitative improvement of Saudization by increasing the employment rate, helping Saudis to get high-salaried jobs, increase the number of female workers in companies and ensure job stability for Saudis. Speaking about the Saudization of the telecom sector, he said: "It's being carried out as part of targeting potential sectors that offer good job opportunities for young Saudi men and women. We implemented this system after holding talks with telecom companies for the last six months." He compared the ministry's inspection campaign on targeted sectors to the cheetah that hunts down its prey after closely observing its movement. "The ministry carries out its inspection campaigns making use of its research and monitoring capabilities," Al-Humaidan said. "We'll inspect a firm when we learn there are discrepancies" such as salary difference and fake Saudization, he added. Al-Humaidan highlighted the success achieved by the Saudization program over the past year as it encouraged private companies to employ required number of Saudis to fulfill Nitaqat conditions. "Most companies have reached now secured levels," he said. However, the deputy minister stressed that companies should offer more jobs to slash unemployment rate among the Saudis. Asked about the expected result of Mawzoon, he said: "It would result in the employment of more Saudis and increase the number of firms in the yellow category of the Nitaqat. At the same time, most companies will remain in the green zone." The ministry introduced Mawzoon as part of its efforts to encourage private firms to employ more Saudis and bring about a spate of reforms in the job market in line with Vision 2030. Under the new Mawzoon system companies would be categorized into three groups: Firms having 50 to 99 workers, firms with 100 to 199 workers, and those with 200 to 499 workers. The ministry has decided to cancel all the previous regulations that stand in the way of the new Nitaqat system, which will be implemented from Dec. 11 this year.
