Saudi Arabia to Open Labor Offices in Move Seen Eliminating Brokers

Saudi Arabia to Open Labor Offices in Move Seen Eliminating Brokers
Labourers work on a construction site in Dubai Marina February 28, 2009. Dubai’s government said on February 25 $10 billion in bond proceeds from the UAE central bank would be enough for now to help the Emirate’s companies pay off debts and restructure to deal with a real estate slump. REUTERS/Steve Crisp (UNITED ARAB EMIRATES) – RTXC6ZR

The Saudi Cabinet on Monday approved the opening of labor attache offices in several countries, according to the Saudi Press Agency.

The new offices will be hosted by the Saudi embassies in Egypt, India, Philippines, Pakistan, Bangladesh, Indonesia and Sri Lanka. The decision comes after a recommendation by the Standing Committee of the Council of Economic Affairs and Development.

Mns of expatriate workers live and work in the kingdom, mostly employed in labor intensive industries such as the construction sector. Estimates on the percentage of foreign workers in the country range between 20% and 35% of the total population.

Recently the case of tens of thousand foreign workers stranded in Saudi Arabia has attracted attention after construction giant Saudi Oger stopped food deliveries and payments to its laborers in reaction to its financial difficulties.

The move is seen as aiming to eliminate the role of brokers – who often inflate fees for domestic workers – in recruitment efforts by companies seeking to recruit foreign workers, reported ME Construction News.

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