Real Estate

Labour crisis hits Saudi projects

  • PTI, Dubai
  • |
  • Updated: Jul 23, 2013 11:07 IST

Nearly 36% of construction projects in Saudi Arabia have been hit by labour crisis following the Gulf Kingdom’s decision to introduce a labour law, according to a report.

There were 250,000 registered construction project contracts in Saudi Arabia before the first grace period to legalise expatriate workers ended on July 4.

However, 90,000 of these registered contracts, belonging to various small contracting companies have since been cancelled. The newspaper quoted Raed Aqeili, a member of the National Committee in Saudi Chambers, as saying that most big projects were affected by the decision (to introduce Nitaqat law) because they relied on small companies for employment.

The ‘Nitaqat’ law makes it mandatory for local companies to hire one Saudi national for every 10 migrant workers. As a result, a number of people from foreign countries who were working without valid work permits and runaways have come under the scanner.

Saudi King Abdullah bin Abdulaziz has extended the amnesty period for illegal foreign workers in the country by four months to November 4, bringing relief for thousands of immigrant workers, including Indians, who are yet to regularise their documents.

 

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