‘Saudization’ still on track, says DFA

The Department of Foreign Affairs (DFA) on Thursday belied reports that Saudi Arabia had deferred the implementation of the “nitaqat,” or the Saudization program that requires companies in the Middle East kingdom to hire more Saudi nationals.

It is not true that the Saudi labor ministry had moved to March 2012 the implementation date of the complex labor scheme, the DFA said.

The Saudization program has been in effect since June 11, it said, quoting the Philippine embassy in Riyadh.

“From this date, all Saudi companies, estimated to number around 300,000, are required to nationalize, or populate their workforce with Saudi nationals (for those who have not done so) or speed up the hiring of Saudis (for those who are slow to comply or are not complying),” read an embassy advisory.

About 90 percent of the workforce in the kingdom is composed of foreign migrant workers, including more than 1.5 million Filipinos.

According to the embassy, Saudization will adversely affect the employment of Filipino workers only “if the Saudi government pushes through with a sustained implementation of the policy.”

“However, there will be no massive, short-term displacements of overseas Filipino workers (OFWs) as feared by some sectors,” it said.

DFA spokesperson Raul Hernandez explained that Saudi companies categorized as “red,” or those that have not complied with the program, are given six months, or until December 2011 to comply.

Firms categorized as “yellow,” or those that have begun their programs but have yet to achieve the quota, have nine months, or until March 2012 to comply.

Companies categorized as “green” are those that have sufficiently met the desired percentage of Saudi nationals in their workforce.

Saudi labor guidelines set a 49-percent quota of Saudi employees in big banks, and at least 19 percent in commercial, media, insurance and education ventures.

Household workers are not covered by the Saudization scheme.

The embassy said semi-skilled or unskilled OFWs in the yellow- and red-designated companies will most likely be affected, “particularly if their lengths of stay in Saudi Arabia have exceeded six years and whose work permits could not be renewed, could still be hired by green category companies.”

“OFWs in the green category may change their jobs except to posts restricted to Saudi nationals,” the embassy explained.

Citing the complexity of the nitaqat scheme, the mission said “it is not possible at this time to provide an accurate number of OFWs who might be affected by Saudization, pending the completion of the categorization of Saudi firms on Aug 30.”