Saudi Arabia's plan to limit foreign worker visas in an effort to boost the employment of nationals will have negative effects on the economic growth and inflation rates, according to Citi’s Middle East chief economist.
“There is the possibility that many private sector companies will be shut down as a result of strict implementation ... Their possible failure would be likely to have an impact on economic growth, as the private sector goes through an adjustment period,” Citi’s Farouk Soussa said in a research note.
Companies in Saudi Arabia will have a three-month period to September 7 to achieve a set quota of Saudi employees, Labor Minister Adel Fakieh told Al Arabiya TV on Tuesday.
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