RIYADH: The Saudi Arabian General Investment Authority (SAGIA) has announced companies in the red category of the Nitaqat program will have to sign an undertaking to ensure they continue to receive the authority’s services, at least for the short-term.
Such companies do not fulfill the Saudization targets as required by the Nitaqat program implemented by the Ministry of Labor last year. The ministry had announced a grace period for such companies to improve their status.
The undertaking to be signed by a red category company stipulates it would fulfill the regulations governing the employment of Saudis, SAGIA said in a statement on Monday.
It stressed SAGIA’s commitment to Nitaqat. SAGIA will not exempt any company from Nitaqat targets, the statement said.
Ali bin Muhammad Shanaimer, undersecretary to SAGIA’s governor and executive president of operations, has instructed its offices to offer services to investors on the basis of the Nitaqat program.
The Nitaqat program aims to find long-term and short-term solutions to growing unemployment in the Kingdom. The program divides private companies into excellent, green, yellow and red categories based on the level of their Saudi workers. It set a grace period for yellow and red category companies to employ the stipulated number of Saudis or else face severe consequences.
The statement said red category companies should contact SAGIA to receive a warning letter that also provides a grace period of not more than three months to rectify failure to fulfill any licensing terms including implementing Saudization targets set by the Labor Ministry.
The authority will also take action if any company violates foreign investment regulations.
The statement made it clear that SAGIA’s priority will be to companies in the excellent category followed by those in the green category.
The SAGIA has also been collaborating with the Labor Ministry and the Human Resources Development Fund to hold workshops on initiatives to find employment opportunities for Saudi youths.
The statement also said its move comes in line with the government’s efforts to find employment opportunities for qualified Saudis passing out in large numbers from universities and training institutes.
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