More than 341,000 Saudi businesses don’t employ nationals

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An official source at Saudi Arabia’s Labor Ministry has claimed there are more than 341,000 small businesses exclusively run by foreigners, the al-Madinah daily reported on Wednesday.

These entities, which employ about nine or fewer foreigners, have not appointed a single Saudi citizen, said the source.

He said the monthly fees of SR200 imposed on foreign workers since Nov. 15, 2012, were caused by many factors, including the increasing number of expatriates in the country.

Director of the ministry’s joint media center Abdulaziz al-Shamsan said private establishments that are entirely managed by foreigners represented over a third of all small businesses in the Kingdom.

Al-Shamsan said the ministry was committed to implementing the Cabinet’s decision to levy a fee of SR200 on foreigners who exceed the number of Saudis in each business.

He said under the decision of the Council of Ministers, the money collected from these fees will go to the Human Resources Development Fund.

This article was first published in the Saudi Gazette on August 15, 2013

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