Saudi Arabia: Council of Ministers Decision No. 50 of 1994 on Saudisation

Title

Saudi Arabia: Council of Ministers Decision No. 50 of 1994 on Saudisation

Date of adoption

Entry into force

In effect

Source:

 – The Ministry of Labour, Kingdom of Saudi Arabia, accessed: 20 June 2014, http://portal.mol.gov.sa/ar/PressReleases/Documents/6.pdf

Abstract

Keywords: Saudi Arabia, Laws & Regulations, Saudisation

This decision contains a number of recommendations for replacing foreign labour with national labour.

In accordance with art. 1, all establishments must seek to attract nationals, hire them and ensure they continue their employment.

Art. 2 requires each establishment that employees twenty or more people to increase the percentage of its Saudi employees by no less than 5% of its total employees each year.

The aforementioned percentage shall be adjusted according to the availability of national manpower and the nature and circumstances of the work and the percentage of Saudi employees for any establishment, activity or area (Art. 3).

Establishments must seek to meet the percentage by hiring national manpower from various professional categories (Art. 4).

Art. 6 lists the penalties for establishments that fail to follow the above rules.