Saudi Arabia could increase cost of foreign staff

Saudi Arabia is considering increasing the cost of hiring foreign workers in another measure designed to encourage more nationals into the private sector.

Labour Minister Adel Fakeih said the Council of Ministers had asked his ministry to examine the issue, as well as penalising private employers who forged Saudisation quotas, state media reported.

Saudi Arabia has set minimum numbers of locals that must be employed by businesses in various sectors, with hefty penalties for non-compliance.

There are approximately nine million expats in the kingdom, which has a total population of about 27 million.

“Another study is also in the pipeline to compel those companies, which are involved in fake Saudisation, to pay the cost of employing the required number of Saudis,” Fakeih said.

It was recently reported that Saudi authorities are considering setting a minimum wage for nationals that would be double that for expats.