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 authority issues health warning on food import

Updated 5 sec ago
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Saudi authority issues health warning on food import

RIYADH: The Saudi Food and Drug Authority issued a warning about Country Butcher Boy beef pepperoni, manufactured in the UAE.

According to the Saudi Press Agency, the 250-gram packages with an expiration date of March 1, 2025, are contaminated with Listeria monocytogenes, a bacterium posing serious health risks, confirmed by lab tests.

The authority advised the public to avoid consuming the product and dispose of any units they may have.

Steps have been taken to remove the contaminated product from the market, and regulatory action is being pursued against the importing company, the SPA reported.

Violations of food laws can result in severe penalties, including up to 10 years in prison, fines of up to SR10 million ($2.6 million), or both.

The authority reiterated its commitment to food safety and will continue taking action against violators. Consumers can report food safety concerns to the authority’s call center at 19999.


Thai Embassy joins Riyadh greening initiative

Updated 10 min 17 sec ago
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Thai Embassy joins Riyadh greening initiative

RIYADH: The Royal Thai Embassy recently took part in a volunteer initiative at Aba Samri National Park in the Murat governorate of Riyadh region, in collaboration with the National Center for Vegetation Cover Development and Combating Desertification.

Part of the National Greening Season, the activity aims to enhance vegetation, curb land degradation, and plant native and adaptive species, supporting the Saudi Green Initiative, the Saudi Press Agency reported.

The embassy’s involvement promotes vegetation restoration and aligns with the center’s call for broader environmental engagement from all sectors. The scheme improves air quality, reduces dust storms and restores ecosystems, the SPA added.

The National Greening Season, a core element of the broader program, fosters public-private partnerships, volunteerism, and awareness about afforestation and combating desertification.

The center leads efforts to protect and restore vegetation sites across Saudi Arabia, addressing challenges such as wildfires, illegal logging and unregulated grazing to safeguard natural ecosystems.


Hayy Matsuri celebrates Japanese, Saudi cultural traditions

Updated 43 min 27 sec ago
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Hayy Matsuri celebrates Japanese, Saudi cultural traditions

  • Three-day festival features performances by Japanese and Saudi artists alongside a host of cultural-inspired activities 
  • Event coincides with the 70th anniversary of diplomatic relations between Japan and Kingdom

JEDDAH: Art Jameel, in collaboration with the Consulate General of Japan in Jeddah and Abdul Latif Jameel Motors, has launched the second edition of Hayy Matsuri, a cultural festival celebrating the fusion of Japanese and Saudi traditions, arts, and innovation. 

The festival runs until Jan.11 at Hayy Jameel, and marks the 70th anniversary of diplomatic relations between Japan and Saudi Arabia.

This year’s event features exclusive performances by Japanese music project Electronicos Fantasticos! and sound artist Daisuke Tanabe, both making their Saudi debut. 

Their groundbreaking work, which transforms everyday objects and repurposed electronics into musical instruments, will be showcased in collaboration with Saudi artists such as DesertFish, Akram Ali, and Abstract Crew. Together, they explore memories of the past, present, and future through immersive audiovisual performances.

The festival has already garnered immense public interest, with more than 3,000 visitors attending on its opening day.

The festival runs until Jan.11 at Hayy Jameel, and marks the 70th anniversary of diplomatic relations between Japan and Saudi Arabia. (Arab News)

Antonia Carver, director of Art Jameel, highlighted the festival’s importance in fostering cultural exchange.  “Through the Jameel family’s great history of philanthropy and long-standing relationship with Japan through ALJ Motors and Toyota, we have a special cultural connection here to explore through Hayy Matsuri. 

“This year marks 70 years of Toyota in Saudi Arabia and 70 years of diplomatic relations between Japan and Saudi Arabia, making it a particularly significant year for us. 

“The enthusiasm for Japanese culture in Saudi Arabia is immense, as demonstrated by the overwhelming response we received during our open call for the Hayy Matsuri market and the crowds here tonight — the creativity and passion for Japan that exists here is truly remarkable. 

“This year’s highlight is a set of performances and workshops by Electronicos Fantasticos!, a groundbreaking band that transforms old technology into instruments. Their fusion performance with Saudi musicians is a perfect example of the cross-cultural exchange we aim to foster at Art Jameel, showcasing how music, cinema and the arts can unite and communicate across cultures in an exciting and compelling way.”

Daisuke Yamamoto, consul general of Japan in Jeddah, expressed his enthusiasm for the event and its role in strengthening Saudi-Japanese ties. “Hayy Matsuri, held in wonderful cooperation with Hayy Jameel for the second consecutive year, strengthens the bonds of friendship and cultural exchange between Japan and Saudi Arabia. 

“This festival showcases various forms of Japanese culture, introducing them to Saudi society, and we are excited to have welcomed over 5,000 visitors last year, with hopes of seeing even more this year. 

The festival runs until Jan.11 at Hayy Jameel, and marks the 70th anniversary of diplomatic relations between Japan and Saudi Arabia. (Arab News)

“As Saudi Arabia embraces cultural openness through its Saudi Vision 2030, Japan is proud to partner with the Kingdom in achieving these cultural goals, and Hayy Matsuri plays a vital role in this mission. 

“This year, as Japan and Saudi Arabia celebrate the 70th anniversary of diplomatic relations, we are reminded of the importance of cultural exchange, as demonstrated by the recent signing of an MoU between Saudi Arabia’s minister of culture and Japan’s minister of education, culture, sports, science, and technology.”

The festival offers an array of workshops, performances, and activities that reflect Japanese and Saudi cultural practices. Visitors can enjoy a traditional tea ceremony, Ikebana flower arrangements, Japanese calligraphy, and origami. 

Interactive sessions such as manga drawing, fan art illustration, a board games zone, printmaking activations and cosplay competitions provide creative outlets for all ages.

An open cultural market, supported by Monochrome Community, brings together over 30 vendors, celebrating a fusion of local and Japanese creativity. 

The market features brands and artisans, such as Taiyo Matcha, The Boba Bar, and Onigiri Bites, offering visitors a range of authentic and innovative cultural experiences. 

Founders of Taiyo Matcha, Anas Jeelani and Ai Nakamura, launched their products at the festival, aiming to elevate matcha standards in Saudi Arabia. 

“We noticed that the matcha sold in the Saudi market is not as authentic as we are used to in Japan. We thought if we could bring authentic matcha from Japan and sell it at competitive prices, it would raise the standard for matcha in Saudi Arabia,” Jeelani said.

Workshops such as “Manga Drawing: The Hero’s Story” by Mohamed Almadan immerse participants in Japanese art techniques.

Almadan said: “In this workshop, we focused on creating a space-themed story where everyone had the chance to both write and draw their own manga. 

“My goal is to guide participants in building their unique stories and characters while making the process approachable and fun.”

Alliance Française Saudi Arabia, in collaboration with Hayy Cinema, presents Rendez-vous with French Cinema as part of the Hayy Matsuri 2025 festival. 

Larry Lamartiniere, managing director of Alliance Française, expressed his excitement about the collaboration, saying: “As the newest resident of Hayy Jameel, we are thrilled to partner on Hayy Matsuri 2025 to highlight the strong cultural ties between France and Japan.”

“Our collaboration features two key components: the screening of ‘The Truth,’ a French-Japanese film directed by Hirokazu Kore-Eda, and a workshop dedicated to exploring the influence of Japanese culture on French traditions. 

“France, now the second-largest market for Japanese animation and manga, has embraced various aspects of Japanese culture, from martial arts like judo to the growing popularity of sushi. 

“Through this partnership, we aim to showcase the cultural synergy between the two nations and emphasize France’s role as a global cultural powerhouse. 

“We hope to introduce audiences to the French perspective, encourage them to learn French, and offer them a deeper understanding of the fascinating world of manga, anime, and Japanese pop culture. 

“The workshop will provide a unique opportunity to explore these cultural connections, and attendees can also dive into our newly available French manga collection at the Alliance Francaise library.”


Saudi fund supports Tunisia with hospital projects

Updated 50 min 10 sec ago
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Saudi fund supports Tunisia with hospital projects

RIYADH: The Saudi Fund for Development recently signed agreements to strengthen Tunisia’s healthcare sector by completing hospitals in Sbiba, Kasserine governorate, and El Jem, Mahdia governorate.

Funded through a soft loan, this initiative highlights Saudi Arabia’s commitment to strengthening bilateral ties and supporting development in Tunisia, the Saudi Press Agency reported.

The signing ceremony, held at the Tunisian Ministry of Health in Tunis, was attended by Tunisian Minister of Health Mustapha Ferjani, Saudi Ambassador to Tunisia Abdulaziz Al-Saqr, and the fund’s director general for Arab countries operations, Bandar Al-Obaid.

Ferjani expressed gratitude to King Salman and Crown Prince Mohammed bin Salman for their continued support of Tunisia, emphasizing that this project reflects the Kingdom’s commitment to the Tunisian healthcare sector.

Al-Saqr reaffirmed Saudi Arabia’s dedication to advancing joint development projects in Tunisia, financed through various Saudi entities, and stressed the fund’s commitment to completing all its initiatives in the country.

The Saudi Fund for Development so far has financed 32 development projects and programs in Tunisia through soft loans exceeding $1.23 billion, along with four grants worth over $105 million to support key sectors, SPA reported.


Kingdom arrests 19,418 illegals in one week

Updated 11 January 2025
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Kingdom arrests 19,418 illegals in one week

RIYADH: Saudi authorities arrested 19,418 people in one week for breaching residency, work and border security regulations, the Saudi Press Agency reported on Saturday.

According to an official report, a total of 11,787 people were arrested for violations of residency laws, while 4,380 were held over illegal border crossing attempts, and a further 3,251 for labor-related issues.

The report showed that among the 1,221 people arrested for trying to enter the Kingdom illegally, 56 percent were Ethiopian, 42 percent Yemeni, and 2 percent were of other nationalities.

A further 136 people were caught trying to cross into neighboring countries, and 19 were held for involvement in transporting and harboring violators, SPA reported.

The Ministry of Interior said that anyone found to be facilitating illegal entry to the Kingdom, including providing transportation and shelter, could face imprisonment for a maximum of 15 years, a fine of up to SR1 million ($260,000), as well as confiscation of vehicles and property.

Suspected violations can be reported on the toll-free number 911 in the Makkah and Riyadh regions, and 999 or 996 in other regions of the Kingdom.