The new labour policy, called Nitaqat, might lead to the denial of job opportunities for large number of expatriates from India, especially from Kerala, Chief Minister Oommen Chandy said in a letter to Prime Minister Manmohan Singh.
"It has come to my notice that the Kingdom of Saudi Arabia has initiated strong steps to implement Nitaquat law to expand employment avenues to its nationals which may ultimately lead to the denial of job opportunities for expatriates," he said.
Seeking Centre's intervention considering the seriousness of the matter, Chandy wanted the government to use "our cordial relations with that country so that they may take a liberal approach regarding the implementation of Nitaquat."
Under the new policy, 10 per cent of jobs even in small and medium business establishments should be reserved for Saudi nationals.
In 2011, 2.28 million Keralites were working abroad. Of them, some 570,000 are in Saudi Arabia, a report said.