Saudi denies intent to deport foreign workers [May 31 2011]

Saudi Arabia's labor minister said in Riyadh today that only private sector companies that fail to employ enough Saudi nationals would face restrictions on the renewal of their expatriate employees' work permits, clarifying earlier comments that jolted the business community in the oil-rich country.

Adel Fekyeh was quoted by the pan-Arab daily Al-Hayat on Monday as saying that foreigners who had been in the kingdom for six years would not have their permits renewed — a move he explained as part of Saudi Arabia's push to boost job opportunities for its citizens. Late Monday night, the ministry sought to clarify his remarks, saying there was no blanket policy barring the renewal of work permits for long-term expatriate employees and that the restrictions were targeting companies not complying with regulations requiring at least five to 10 percent of their laborers be of Saudi nationality.

"Companies that, after requests by the ministry over long years, do not comply with their obligations will not have work permits renewed," Fekyeh said in an interview with Arabic satellite channel Al-Arabiya. Saudi labor officials are looking to begin implementing a new incentive program for the private sector. Under the program, companies would be divided into four categories: "excellent" and "green" for those that comply with the nationality quotas, and "yellow" and "red" for those that do not. The initial remarks sent a ripple of unease through the Saudi business community, which relies heavily on foreign labor in a range of sectors.