Saudi construction on road to recovery
Saudi contractors wary of employing undocumented workers due to penalties
Following the government crackdown on undocumented labourers in the country, the Saudi construction sector is reportedly recovering following a slump in productivity.
Construction workers are being given temporary jobs that last the duration of on-site construction activity. While the private sector prefers taking loans to indulge in construction, high labour costs act as decisive factors in the final decision. Saudi individuals choose expat workers from Egypt and South-Asian countries.
After the crackdown by the authorities, Saudis are apprehensive about employing undocumented workers for fear of penalty. Many contracting establishments, a major source for expat labour in the Kingdom that were functioning in violation of rules and regulations, have also closed down.
Statistics by the Saudi Council of Chambers show there were 200,000 registers contracting companies before the crackdown, and the number has nearly halved since the campaign began.
Riyadh, Jeddah and Dammam are largely dominated by undocumented expat workers, starting from labourers who unload sand to electricians, plumbers and carpenters.
The report by Arab News adds that citizens in Jeddah, were struggling to add finishing touches to their houses (masonry, painting, etc), and while the situation is supposedly improving, the costs of undertaking these activities have increased.
