Construction

Egypt to aid Saudi contractors

By Neha Bhatia

Posted on March 5, 2014

Kingdom will work with Egypt labour union to support local contractors

The Kingdom’s crackdown on illegal migrants has affected Saudi contractors’ operations

Saudi contractors could soon be using the resources of their Egyptian counterparts as the labour shortages in the country push contractors to look at alternative arrangements.

Local media reports had earlier revealed that the Kingdom was suffering from a labour shortage following the government’s crackdown on illegal migrants in Saudi Arabia, and its consequent effects on construction activity in the Kingdom.

To overcome these shortages, a meeting between the Saudi National Contractors Committee and the Egyptian Union for Contractors was held in Riyadh, where the latter agreed to offer its services following the implementation of a ‘proper mechanism…to obtain visas’.

“Many Saudi contractors are utilising Egyptian expertise in technical work that do not require their presence at the site, especially as their services are reasonably priced,” a statement from the committee said.

Saudi contractors also added they are suffering due to the Ministry of Labour’s conditions, wherein the contractors are not permitted to hire workers until the construction site is handed over to them.

Additionally, both parties discussed the obstacles faced by foreign investors, such as banks that do not provide guarantees for foreign investors. Egyptian representatives also expressed concerns regarding contractors who sublet contracts, requesting for clear regulations to ensure their rights.

Furthermore, the Egyptian side noted that the rules set down by Saudi Arabian General Investment Authority (SAGIA), such as the requirement of 75% Saudi representation in the workforce, hinders foreign investment in the country.

According to a report by local daily The Saudi Gazette, delayed paperwork was also a complaint brought forth by Egyptian representatives.