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Saudi’s construction projects take a hit

Saudi Arabia follows GCC

Kingdom's labour reform cancels one third of projects.

July 24, 2013 9:41 by

Saudi Arabia’s construction sector is facing massive setbacks as one third of all the construction projects in the kingdom have been cancelled.

Before the first grace period for illegal foreign labourers to rectify their visa status ended on July 4, there were approximately 250, 000 registered construction project contracts in the kingdom.

Since then, 90,000 of them have been scrapped, according to the National Committee in Council of Saudi Chambers, as reported Arab News. Several of the large projects were affected by this move because they relied on smaller companies for employment.

The labour amnesty, which ends in November, is part of a larger scheme to tackle high unemployment rates among Saudi nationals by reducing the number of illegal workers in the kingdom.

There are roughly 12 million expats in Saudi, with four million of them having corrected their status over the last four months.

The ‘Nitaqat’ law makes it mandatory for local companies to hire one Saudi national for every 10 migrant workers.

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