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Labor market in Saudi Arabia

 

Saudi Arabia is the biggest service market. During recent years, the service market is enlarged gradually because of the high-speed development. According to the statistics of the relative department, service market in Saudi Arabia is hiding the huge business opportunity.

With the development of the project cooperation between China and Saudi Arabia, the pace of bilateral service cooperation is getting quick and more and more service workers are entering the Saudi Arabia market. In order to help Chinese enterprises know more about the service market, policies, legislation and the existing risk in Saudi Arabia, we compile this book as the reference.

Population in Saudi Arabia

Resident population : 23,35 million

Saudi Arabia service market

Saudi Arabia service law and legislation

The foreign labors are restricted by the labor law like the local labors. The basic operation is on sa.mofcom.gov.cn as reference.

The policy main points of introducing the labors into Saudi Arabia is as following

The gulf countries probably restrict the time of residence of the labors as 6 years coincidently because of the resulting career and social problems.

There are 14 million foreign people in gulf area, which is 40% of the entire population and among which there are 7 million in Saudi Arabia. Although the six countries are depending on the foreign labors in the society life , the unemployment problems are still attracting the attention of the entire society.

In order to contain the behavior of faking and abusing the labor visa and create more career chances, Saudi Arabia government supplies the labor visa to the employee is restricted into one year. The employee is admitted to require changing the name and nationality of the labors within half year from the day getting the sanction, but is not agreed to renew or postpone the validity of the visa

The target of Saudi Arabia government is to reduce the population of foreign labors below 20% of the nowadays population of the whole country in 10 years.

 

Saudi Arabia government requires the whole privately-run enterprises employ the local residents not least 30% of the population from July , 2008. All the foreign labors will be substituted besides supermarkets, shopping plazas and grocers.

 

Saudi Arabia government carries out the policy of the enforced healthy insurance for the foreign labors

Saudi Arabia Labor department stipulate the employee need to submit the capital and the operation certification of the company before employing the foreign labors.

From 1st,June,2007, all the stayers whose visa is postponed will be fined 100 riyal.

The age of Warrantor of Saudi Arabia nationality is at least 21

From 25th, July, 2007, the foreign labors escaping from warrantors will be exhibited to be took in or used by any units, individuals .

The measures of protecting foreign labors carried out by Saudi Arabia Labor Department

The company which delay the salary consecutively in 2 months, will be forbidden to employ any labors

If the employees delay the salary consecutively in 3 months, employers can ask the Labor Department to change the warrantors immediately.

Saudi Arabia labor market prospective

Nowadays, gulf countries established the Foreign Labor employment and coordination committee.

Via the great effort, Saudi Arabia government aims to reduce the labor population below 20%of the whole population nowadays in 10 years.

Cooperation situation between china and Saudi Arabia government

Architecture labor

Chinese labor team has developed with the high speed during these 3 years since enter the Saudi Arabia market in 1997.

The items need paying attention on are:

Knowing full scaled about the law of Saudi Arabia, especially the Labor law and strengthening the education of risk awareness. 

Familiar with Saudi Arabia market, and signing the regular contact with the Saudi Arabia employee.

The unit dispatching the labors should strengthen its management and solve the labor dispute.

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