A Saudi manpower recruitment company, Dar Al-Estiqdam, will be set up soon with a capital of SAR100 million (USD 27 million) in Jeddah, according to a decree issued by Commerce and Industry Minister as reported by Arab News.

The capital of SAR100 million will be divided into 10 million shares with a face value of SAR10 each. The founders will be subscribed in all the company's shares, and the city of Jeddah will be the headquarters of the company, according to an official statement from the ministry.

The company's activities include practicing mediation in recruiting manpower and providing labour services including domestic workers and labourers for public and private sectors.

The ministry's approval for the establishment of this company comes as part of the state's policy and efforts to promote the economic activity in various sectors and to raise the competitiveness of the national economy in facing the regional and international challenges and competitions.

A senior ministry official said the doors would remain open for the establishment of more private recruitment companies provided they adhere strictly to the conditions approved by the ministry.

"The ministry's decision to give the opportunity to everyone to establish a recruitment company was promoted by its keenness to achieve variety, justice and competitiveness in the labour market for the benefit of both the companies and clientele," he said.

He explained that the issuance of the final licenses by the ministry to the recruitment firms depends on three conditions: the scale of demand for foreign labour; their ability to accommodate workers and provide them with the required services; and their ability to abide by the ministry's rules and conditions.