The Impact of the Revised Expat Levy on the Saudization Ratio 2

Topic 

The Impact of the Revised Expat Levy on the Saudization Ratio 2

Instructions 

Write a journal paper focusing on The Impact of the Revised Expat Levy on the Saudization Ratio 2

Answer Preview 

However, the |Saudi government faces two primary challenges in its effort to create employment and to raise the standards of living; Firstly, Saudi Arabian age structure is young, with the new number of entry workers increasing every year. This is supported by the fact that Saudi Arabia has one of the greatest birth rates globally. Secondly, Saudi Arabia receives several workers every year from foreign countries. The system does not, however, match the availability of jobs with the market skills for the foreign workers. This means that the foreign workers are bringing in skills already existing in Saudi Arabia. The problem is even further profounded by the sponsorship scheme by the private firms, referred to as the Kafeel system

In an attempt to solve the unemployment situation in the country, the Saudi Arabian government has introduced the program and policy referred to as “Saudization.” The program is directed to replace the expatriate workers gradually with the Saudi workers (Looney, 1992). The private sector is being encouraged and directed to increase the proportion of the citizens in the employment through a policy of punishments and inducements, which charges for Iqamas or work permits and re-entry/exit visas significantly raised. As a result of the policy, the private sector finds it very challenging and expensive to hire expatriate workers. The issuance of the foreign labor visa is also being strictly and rigorously screened.

Word Count: 4600