Saudi Arabia’s labor reforms seen as big boost for private sector

The Labor Reform Initiative is aimed at improving contractual relations between workers and employers. (Aramco)
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Updated 05 November 2020
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Saudi Arabia’s labor reforms seen as big boost for private sector

  • New initiative aims to develop and improve the labor market environment and raise its competitiveness

JEDDAH/RIYADH: Saudi Arabia’s new labor reforms, announced Wednesday, will benefit foreign skilled workers in the Kingdom’s private sector while ensuring flexibility of movement say ministers.

Saudi Arabia’s Ministry of Human Resources and Social Development (MHRSD) unveiled the Labor Reform Initiative (LRI) under the National Transformation Program (NTP), which will improve the contractual relationship between workers and employers in a drive to make the job market in Saudi Arabia more attractive.

Commenting on the initiative, which was a collaboration with the Ministry of Interior, MHRSD’s Minister Ahmed Sulaiman Al-Rajhi tweeted: “We have launched a Labor Reform Initiative, one of the initiatives of the National Transformation Program, through which we seek to develop and improve the labor market environment and raise its competitiveness to enable human resources in accordance with the Kingdom’s Vision 2030.”

The initiative, which comes into effect on March 14, 2021, will help foreigners to acquire a residency status that is not tied to a specific employer or employment status, a key reform in the sponsorship system, bringing Saudi Arabia closer to labor market regulations in advanced economies.

Fadhel Saad Al-Buainain, a member of the Shoura Council and an economic expert, said the Kingdom seeks to improve the work environment for the private sector to meet the international standards. The Kingdom has implemented numerous initiatives to protect wages and improve the work environment, housing conditions and insurance.

“This initiative protects an employee’s dignity and freedom and guarantees for the employer compliance with the contract. The Saudi government is keen to reform the business sector and the labor market and to adhere to the requirements of the International Organization of Labor,” he told Arab News.

By allowing job mobility, regulating the issuing of exit and reentry visas and protecting the rights of both employee and employer, it will contribute to increasing the efficiency of the work environment.

Mohammad Sabbah, a business development specialist from Jordan residing in the Kingdom for 20 years and specializing in the Saudi market, described the initiative as a step in the right direction, noting that investment in Saudi Arabia is safe. It is vital for the employee-employer relationship to be flexible as such things can develop business overall, he said.

Saudi Arabia has introduced similar initiatives in the past to relax restrictions on the mobility of foreign workers and to protect the rights of the workforce, including the Wage Protection System, the digital documentation of work contracts, the Labor Education and Awareness Initiative, and the launch of “Wedy,” an arbitration process where labor ombudsmen and case officers are available to help employees and employers in a dispute.

Under the new initiative, employers will be required to document digitally employee contracts to reduce the disparity between Saudi workers and expatriates as more than 150,000 labor disputes have been filed in the past 3 years. The MHRSD aims to solve labor cases amicably through its settlement administration. The initiative will also help to regulate the unorganized labor force in the Kingdom, which is estimated to be in the millions.

The reforms will allow expatriate workers to transfer between employers after their contract expires, without the need for the employer’s consent. The initiative also outlines conditions applicable during the validity of the contract, provided a notice period of three months and specific measures are adhered to.

The exit and reentry visa reforms will allow expatriate workers to travel outside Saudi Arabia without their employer’s approval after submitting a request. The Final Exit Visa reforms allow foreign workers to leave Saudi Arabia after the end of their employment contract without the employer’s consent. The employer will, however, be notified electronically of their departure.

The LRI outlines that employees must bear all consequences, financial or otherwise, if they break the employment contract.

Tarek Al-Akil, the president of ACE Group, said the old sponsorship system did not meet the requirements of the employer-employee relationship. He said the new measures were bold and will assist Vision 2030’s aim to catapult the Kingdom forwards.

LRI services will be made available to the public through the smartphone app Absher, the MOI’s portal that enables residents of the Kingdom to benefit from e-services provided by the sectors of the ministry and the MHRSD’s Qiwa portal.

Saudi Arabia expects the new initiative to have positive economic effects, including developing the local market and the flexibility of work, increase the productivity within the private sector, attracting highly skilled talent, and ultimately contributing to achieving the goals of the Kingdom’s Vision 2030 reform plan through the National Transformation Program.


Saudi Arabia welcomes independent committee’s report on UNRWA’s performance

Updated 24 April 2024
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Saudi Arabia welcomes independent committee’s report on UNRWA’s performance

  • Saudi Ministry of Foreign Affairs stresses importance of the commitment of donor countries to the organization

RIYADH: Saudi Arabia has welcomed an independent committee’s report on the performance of the UN Relief and Works Agency for Palestine Refugees, the Saudi Press Agency reported on Wednesday.
The Saudi Ministry of Foreign Affairs said the Kingdom backed the report, which confirmed UNRWA’s main role in supporting the relief, humanitarian and developmental efforts of the Palestinian people.
The ministry further reiterated Saudi Arabia’s emphasis on the importance of the commitment of donor countries to UNRWA to ensure the sustainability and effectiveness of all forms of support for refugees in a way that reduces their suffering, especially in light of the Israeli occupation’s continued violations of international law and international humanitarian law.


EU Embassy, Arab News honor makers of Saudi ‘Horizon’ documentary

Updated 24 April 2024
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EU Embassy, Arab News honor makers of Saudi ‘Horizon’ documentary

  • Princess Lamia: ‘Screening is a reminder of our shared responsibility to protect precious ecosystems’
  • Ambassador Farnaud: ‘The Saudi Green Initiative and the European Green Deal have shared goals’
  • Abbas: ‘We are delighted to partner with the EU envoy to showcase Saudi Arabian wildlife in a captivating manner’

RIYADH: The makers of a recently produced, highly acclaimed documentary on Saudi wildlife were honored at a special screening of the film “Horizon” at the residence of the EU ambassador in Riyadh.

The new documentary, produced by the Konoz Initiative, is part of a collaboration between the Saudi Ministry of Media’s Center for Government Communication and the National Center for Wildlife.

It explores the ecological treasures and unique habitats of the Kingdom.

Princess Lamia bint Majed Saud Al-Saud, secretary-general of Alwaleed Philanthropies, was a guest of honor. Princess Lamia, through her work with Alwaleed Philanthropies, has recently announced an initiative called Atlai, an innovative artificial intelligence platform to support global efforts to combat deforestation.

Princess Lamia bint Majed Saud Al-Saud (L), secretary-general of Alwaleed Philanthropies, was a guest of honor at the event. (AN photo/ Huda Bashatah)

The screening was followed by a presentation of an honorary certificate to Abdullah Alahmari, CEO of Konoz initiative, and Yazeed Albader, associate producer of “Horizon.” This was presented by EU Ambassador to Saudi Arabia Christophe Farnaud, Princess Lamia and Arab News Editor-in-Chief Faisal Abbas.

Farnaud said: “The ‘Horizon’ documentary captures the breathtaking beauty of Saudi Arabia’s diverse natural landscapes and wildlife.

“For centuries, much of the Arabian Peninsula, including Saudi Arabia, held a mysterious attraction for European explorers and travelers.”

The ambassador spoke of the significance of protecting the environment due to basic human needs such as food and water, and dependency on the health of our global environment.

An honorary certificate is presented to Abdullah Alahmari, CEO of Konoz initiative, and Yazeed Albader, associate producer of “Horizon.” (AN photo/ Huda Bashatah) 

“The Saudi Green Initiative and the European Green Deal have shared goals. We all depend on nature for our food, air, water, energy and raw materials. Nature and biodiversity make life possible, provide health, and drive our economy. Nature is also our best ally in tackling the climate crisis,” he said.

“Climate change, economic diversification and transitioning to renewables remain priority areas for both the EU with its policy of European Green Deal as well as for Saudi Arabia with its Vision 2030.”

Princess Lamia gave her thoughts on Saudi Arabia’s fascinating natural wonders that are featured in the film.

“Through ‘Horizon’ we are transported to the breathtaking beauty and rich biodiversity of Saudi Arabia. This documentary promises to immerse us in the heart of the Kingdom’s diverse wildlife and scenery,” she said.

The makers of a documentary on Saudi wildlife were honored at a special screening of the film “Horizon” at the residence of the EU ambassador in Riyadh. (AN photo/ Huda Bashatah)

“Tonight’s screening is not only a celebration of Saudi Arabia’s rich natural heritage but also a call to action — a reminder of our shared responsibility to protect and conserve the precious ecosystems that define our world.

“In a time where our forests and natural ecosystems are disappearing at an alarming rate, Atlai, created by Alwaleed Philanthropies, is a testament to the power of innovation and collaboration. It’s about igniting a passion for preservation, a fervor for conservation, and a commitment to safeguarding our planet for generations to come.”

Abbas expressed appreciation for the Saudi team behind the “Horizon” documentary, saying: “We are delighted to have partnered with the EU delegation to host a special screening of this remarkable documentary which showcases Saudi Arabian wildlife in a truly captivating manner.”

Arab News Editor-in-Chief Faisal Abbas. (AN photo/ Huda Bashatah)

He added: “As part of Arab News Green and Blue initiative, which focuses on environment and sustainability, we are also proud to present the Saudi team behind the ‘Horizon’ documentary with a certificate of appreciation, and thank them for their contribution in preserving and showcasing the wonders our beloved Kingdom has to offer.”

Arab News has recently launched its Green And Blue, an initiative which discusses environmental subjects regarding climate change, desertification, wildlife preservation, sustainability, and green energy, with a close emphasis on the environment in Saudi Arabia.

The CEO of Konoz initiative expressed how thrilled he was to attend the screening of the movie.

“This documentary sheds light on the beauty of Saudi Arabia, its versatile terrain and highlights the wildlife we are blessed to have in the Kingdom,” Said Alahmari.

The makers of a documentary on Saudi wildlife were honored at a special screening of the film “Horizon” at the residence of the EU ambassador in Riyadh. (AN photo/ Huda Bashatah)

He expressed his appreciation to the Minister of Media Salman bin Yousef Al-Dossary for his constant support in ensuring that the movie highlights the Kingdom and reaches a broader audience.

The associate producer of the work explained how the documentary took more than 260 days of shooting and more than 2,000 hours of recording because it covered all the regions.

“If you want to shoot some of the animals, you may not get luck on the spot. So, you have to do some scouting, you have to arrive a couple of days before, stay for weeks to spot a nice shot, or to get that perfect skyline with the clouds, sunset or sunrise,” said Albader.

“I was honored to be here, the screening was great. It is a pleasure to be here with the ambassadors, and to see how a lot of people care about nature and wildlife. This is just the beginning of many events to come.”

“Horizon” is now available on Netflix internationally.


Inaugural Umrah and Ziyarah Forum focuses on innovative ways to enhance pilgrim experience

Updated 24 April 2024
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Inaugural Umrah and Ziyarah Forum focuses on innovative ways to enhance pilgrim experience

  • The 3-day event, which concluded on Wednesday, included 6 discussion sessions and 24 workshops led by 29 experts

JEDDAH: The inaugural Umrah and Ziyarah Forum concluded on Wednesday at the King Salman International Convention Center in Madinah. During the three-day event, participants discussed ways to foster collaborations, enhance the pilgrimage experience and improve the services provided for pilgrims.

The agenda for the forum, organized by the Ministry of Hajj and Umrah in partnership with the Pilgrim Experience Program, included six discussion sessions and 24 workshops led by 29 experts and specialists.

The topics they covered included services for pilgrims and other visitors, advancements in air travel services for pilgrims, financial systems in the Umrah and ziyarah sectors, and development opportunities in housing and hospitality services.

Other discussions focused on services at ports, the automation of operations, ways to improve the efficiency of workers, and the important role of services provided for visitors at holy sites and throughout their journeys in Makkah and Madinah.

One of the key topics was air travel services, with discussions about the growth in flight numbers and the need to provide a comprehensive range of services throughout pilgrims’ journeys beyond those purely focusing on their rituals. For example, participants highlighted plans for the expansion of Madinah Airport to better accommodate the increasing numbers of pilgrims and other visitors arriving there.

Another discussion examined financial services in the Umrah and ziyarah sector, and explored the options for international money transfers, ways to develop financial procedures, and innovative digital solutions for processing transactions.

Other topics included development opportunities in housing and hospitality services, during which speakers emphasized the importance of transparency and the need for full compliance by service providers with the terms of their contracts.

The final day of the event featured two panel discussions, one about the role of technology in finding solutions to the challenges in guest services, and the other on ways to carefully develop historical sites to enrich the historical and spiritual experiences for visitors to Makkah and Madinah.


Who’s Who: Swaied Al-Zahrani, CEO of Saudi Credit Bureau

Updated 24 April 2024
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Who’s Who: Swaied Al-Zahrani, CEO of Saudi Credit Bureau

Swaied Al-Zahrani has been the CEO of the Saudi Credit Bureau, also known as SIMAH, since March 2018.

As CEO, Al-Zahrani has guided SIMAH’s short and long-term strategies, ensuring a competitive landscape within the market.

He led major restructuring to enable a future-proof operating model and enhance customer experience. He is focused on improving the governance, risk management, and data management framework and practices.

Al-Zahrani is also a board member of Qarar, a decision analytics company specializing in tailored customer management and lending process automation solutions based in Riyadh, and a board member at Tassnief, the first local credit rating agency licensed by the Capital Market Authority.

He has nearly two decades of experience in the financial sector and is known for his ability to maximize shareholder value through effective strategies, committed to driving innovation and excellence in the financial industry.

Prior to his current role, he worked as chief operations officer at the Social Development Bank in Riyadh from January 2016 to March 2018. He led the bank’s transformation program, focusing on building a new strategy, organizational restructuring, automation and digitalization, customer experience, and risk controls while promoting a savings culture aligned with national strategies.

Al-Zahrani worked for nine years at Al-Rajhi Bank in various domains including IT, business, and banking operations groups, where he participated in major transformation programs.

He holds a bachelor’s degree in computer science from King Abdulaziz University in Jeddah.


Saudi embassy in Cairo receives Kingdom’s first female astronaut

Updated 24 April 2024
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Saudi embassy in Cairo receives Kingdom’s first female astronaut

Saudi Arabia’s Ambassador to Egypt Osama Nugali on Wednesday received Saudi astronaut Rayyanah Barnawi, who is currently visiting Egypt, at the embassy in Cairo.

Nugali congratulated Barnawi, the first Saudi female astronaut, on her achievement which affirmed the progress Saudi Arabia is witnessing in all fields, including the space sector and its technologies, in light of its ambitious Vision 2030.

Barnawi, who is a scientist specializing in cancer stem-cell research, traveled into space as part of the Axiom Mission 2 to the International Space Station last year.