Saudi Gazette report DAMMAM — Several leading contractors have expressed concern on the lack of legal workers available in the market. Fearing the shortage may affect their ability to execute government projects on schedule, the contractors called for implementing a royal decree that would grant them necessary visas within two weeks, Al-Eqtisadiah newspaper reported. Hamad Hamroor, a member of the national contractors committee at the Council of Saudi Chambers, said current conditions do not encourage investors in this sector despite the availability of large projects. He said many construction contractors have refused to accept civil projects due to a lack of workers. The shortage of legal workers has already stalled many projects, he added. In addition to the lack of legal workers, contractors are also complaining of rising prices of building materials. “Building material prices have increased by 300 percent during the past three years. A ton of steel costs SR3,600, while it used to cost SR1,200 only a few years ago. Visa costs have increased from SR1,000 to SR2,000, and contractors have to pay SR2,400 to the labor office for each worker,” Hamroor said. Ali BuKhamseen, another member of the national contractors committee, expressed his concern at a lack of response by the government to the unprecedented rise in building material prices. “Building material prices have risen tremendously while government tenders have not taken into account this rise. This has put contractors in a difficult situation where they are committed to complete the contracted projects despite the rise in costs,” he said.
