Saudi Arabia launches insurance policy to protect expatriate workers

Insurance is part of a package of measures introduced by the ministry to safeguard the rights of employers and employees. (Reuters/File)
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Updated 09 October 2024
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Saudi Arabia launches insurance policy to protect expatriate workers

  • Authorities to enforce penalties for employers who fail to meet their obligations, official says

RIYADH: Saudi Arabia’s Ministry of Human Resources and Social Development and the Insurance Authority have launched an insurance service that will cover unpaid wages for up to six months and provide travel assistance for expatriates in the Kingdom in the case of private sector defaults.

Director general of international communications and cooperation, Abdulrahman Al-Zaid, told Arab News: “The Expatriate Worker Wage Insurance Service for Private Sector Defaults is part of the ministry’s ongoing efforts to protect both workers and employers, while enhancing the overall efficiency and appeal of the Saudi labor market.

“The initiative is designed to create a more secure labor environment, making Saudi Arabia a leading hub for international talent.”

The service covers specific benefits as outlined in the policy, allowing foreign workers in defaulting companies to receive their entitlements — within the financial limits of the policy — and provide a plane ticket to return to their home country, if they wish to do so, within the policy’s financial limits, he said.

Insurance is part of a package of measures introduced by the ministry to safeguard the rights of employers and employees.

Al-Zaid explained how the insurance policy works for the benefit of the expatriates: “In rare cases when wages are not fulfilled, this insurance service will cover unpaid wages and entitlements for up to six months, with a maximum compensation payout of SR17,500 ($4,661) provided the combined rights of all workers do not exceed the overall insurance coverage limit for the company.”

But this payout is contingent on 80 percent or more of the workers in the establishment not having received their wages or entitlements, per the ministry’s regulations.

The initiative is part of the ministry’s commitment to creating a fair and secure labor environment for employers and employees.
 
Affected workers who wish to return to their home countries will be provided with a travel ticket, with cover up to SR1,000 ($266).
 
Al-Zaid said a worker is entitled to a return ticket to their home country “if they wish to leave the country directly without transferring their services to another company and can provide proof of completing all necessary procedures for departure, such as obtaining an exit visa and proof of a travel booking to their home country.”

Private sector employees wishing to apply for the insurance policy can submit claims through the designated insurance company responsible for handling compensation claims.

The ministry will oversee the process to ensure compliance and smooth execution of the service.
 
The introduction of this service does not absolve employers of their responsibilities, and they will still be fully responsible for meeting their wage obligations.

“The ministry will continue to enforce strict measures, including penalties for employers who deliberately fail to meet their obligations,” Al-Zaid added. 
 
Abdul Ghaffar is an expat, originally from India, who has been living in the Kingdom for the past 24 years working as a senior consultant in talent development.

When asked if he had ever been affected by a company defaulting in Saudi Arabia, Ghaffar said: “I have never personally witnessed any instances where companies defaulted on paying my salary. But one of my close friends, who worked for a private construction company, was facing financial difficulties.

“The company delayed salaries for several months, causing significant stress for him and his family. It becomes very critical, especially (for) expatriates who rely on timely wages to support their families back home.”

He said that the situation was resolved but it took months for the individual’s account settlement and exit process. The case highlighted the vulnerability that expatriate workers face in such circumstances, he added.

The ministry and the Insurance Authority's new policy aims to protect expatriates from vulnerabilities such as these.

“I believe the new wage insurance policy is a positive step forward. It shows that the Ministry of Human Resources and Social Development is taking the necessary steps to protect expatriates working in Saudi Arabia,” Ghaffar said. “This policy will not only provide financial relief to workers impacted by company defaults but also create a more secure and attractive environment for expatriates considering working in the Kingdom.”

Ghaffar said of the new policy that the “travel ticket assistance also reflects the ministry’s understanding of the needs of expatriates who might want to return home in such situations.”

He said he believes the new initiative will “enhance Saudi Arabia’s reputation as a fair and competitive destination for international talent.”

The insurance cover for eligible workers began on Oct. 6, 2024. 


Olive presses in Tabuk process harvest from 1.8 million trees

Updated 11 sec ago
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Olive presses in Tabuk process harvest from 1.8 million trees

RIYADH: Olive presses in the Tabuk region are currently processing the harvest from more than 1.8 million olive trees, which yield 94,000 tonnes of olives and more than 12,250 tonnes of olive oil.

The primary olive varieties are Arbequina, Arbosana, nabalie and souri, the Saudi Press Agency reported.

The geography of the Tabuk region and its proximity to a Mediterranean climate, makes it one of the Kingdom’s most important areas for producing various crops.

In addition to olive oil, the region is known for its grapes, apricots, peaches, strawberries, mangoes, oranges and mandarins, with several varieties cultivated to prioritize quality over quantity.

Agriculture is a key economic sector in Saudi Arabia, contributing to self-sufficiency and exports. The government has prioritized the sector by providing farmers with soft loans, agricultural machinery, pumps and other essential equipment.

The regional branch of the Ministry of Environment, Water and Agriculture supports farmers by encouraging the use of advanced agricultural technologies and offering specialized consultations to maximize yields.

It also organizes seasonal agricultural festivals in cities, governorates and centers in the region, timed to coincide with harvest seasons.

The Olive Festival is the region’s premier seasonal event, providing a vital marketing platform for farmers to sell olive products and derivatives.

It is held alongside other events throughout the region, supporting the agricultural community and promoting local produce. 


Thai business meets Arab flair in Riyadh

Updated 15 sec ago
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Thai business meets Arab flair in Riyadh

  • Fair highlights products, brands aiming to tap into Saudi market

RIYADH: The Thailand International Mega Fair brought Thai businesses in contact with Arab flair in Riyadh.

The three-day event, which concluded on Sunday, showcased Thailand’s presence in the Middle East by featuring innovative Thai products and services across various industries.

Marking a historic collaboration between Thailand and Saudi Arabia, the fair signaled a new era of trade, investment, and cultural exchange.

One of the featured brands was Oud Era, a Thai lifestyle brand offering oud-infused products including perfumes, oils, oud chips, and body care items. Its perfumes incorporate Arabian notes like musk, rose, and amber.

Kasaama Pohsa, chief brand officer at Oud Era, said that the oud is sourced directly from the brand’s agarwood factory, ensuring an entirely in-house production process.

Thailand is recognized as one of the leading exporters of oud, which is valued for its longevity and a scent that intensifies as the wood matures. Pohsa said that her clientele primarily comprises customers from Gulf countries.

Pohsa said: “The reason that we came to this exhibition is because we saw the high potential of the Saudi market. It is a very big market with high purchasing power.”

The fair also showcased fashion brands like Marada Clothing, a label known for its distinctive textiles and bold designs.

Panasan Suksanguan, brand officer of Marada, told Arab News that the brand aims to establish itself in the Middle Eastern market with its unique take on long dresses.

Suksanguan said: “We want to be the first ones from Thailand to be here. Whenever you think about fashion in Thailand, you think of me.”

The event showcased more than 200 brands offering prominent Thai products across sectors including food and beverages, tourism and hospitality, health, automotive parts, smart agriculture, innovation, and fragrances.

It was organized by Index Creative Village in collaboration with the Chamber of Commerce and Board of Trade of Thailand, and Cosmos Events company, with support from the Royal Thai Embassy in Saudi Arabia, and the Tourism Authority of Thailand.

The event attracted thousands of visitors, including specialists and buyers, and helped to create opportunities to connect with industry experts, suppliers, and sector leaders to foster partnerships and support business expansion in the Kingdom.

Visitors also participated in various events, including seminars, discussion panels, and forums, which provided valuable insights into the region’s economic landscape.


New project to plant 90,000 trees in Hali Wildlife Park

Updated 51 min 15 sec ago
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New project to plant 90,000 trees in Hali Wildlife Park

RIYADH: The National Center for Vegetation Cover Development and Combating Desertification has launched a project to restore Hali Wildlife Park in Al-Qunfudhah governorate, Makkah region.

Part of the Saudi Green Initiative, the project aims to enhance vegetation cover and promote sustainable environmental goals, according to the Saudi Press Agency.

The initiative involves planting 90,000 native and wild trees, such as vachellia tortilis, tamarix aphylla, vachellia seyal, balanites aegyptiaca, maerua crassifolia, delonix elata, salvadora persica, leptadenia pyrotechnica and acacia nilotica.

The trees will cover approximately 6 million sq. meters, irrigated using water from nearby dams. A 6-kilometer pipeline will be built to channel water from Wadi Hali Dam to the park.

Hali Wildlife Park is known for its scenic landscapes, diverse vegetation and proximity to Wadi Hali Dam, attracting local and international visitors.

The center’s afforestation efforts contribute to creating green spaces, preserving endangered native plants, lowering temperatures, improving air quality, and controlling sand encroachment.

The center is committed to enhancing and managing vegetation sites, protecting natural resources, combating illegal logging, and safeguarding biodiversity, the SPA reported.


‘Climate action must be a collective effort,’ says COP CEO Soltanov

Updated 17 November 2024
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‘Climate action must be a collective effort,’ says COP CEO Soltanov

  • Fight against climate change will fail unless countries come together
  • National interest linked with global actions

BAKU: Countries from around the world must come together in a “collective effort” to fight climate change, COP29 CEO Elnur Soltanov told Arab News.

“When we say, ‘in solidarity for a greener world,’ we mean that climate action must be a collective effort. Unless it is collective, it won’t work, and we risk losing everything,” said Soltanov.

He pointed out the moral imperative of international solidarity, particularly for nations that contribute minimally to global warming yet suffer the most from its effects, such as African countries and small island nations.

“African countries, contribute less than 4 percent to global warming, but the majority of climate-vulnerable countries are in the African continent,” he said.

For example, as of last year, extreme heatwaves during summer have critically affected the northern parts of Africa, such as Tunisia. The temperature in Tunis reached 49°C, whereas Agadir in Morocco, recorded 50.4°C, according to the World Meteorological Organization.

One of the major components of this solidarity is climate finance, which Soltanov believes is essential for creating a fair balance of responsibilities among nations.

“Different countries have different responsibilities, in terms of what is happening in the world today. There are beneficiaries, there are not so many beneficiaries, so this balance and fairness between them could only be provided in case we are moving collectively, and to move collectively, we believe we should deliver on climate finance this year,” he said, stressing that climate finance is critical for enabling of collective action.

Soltanov acknowledged that the outcomes of such gatherings are frequently scrutinized.

“The crisis we are facing is real, it is significant and therefore whenever it is helped, whatever the outcomes are, there will be criticism. It is not about Azerbaijan, it is not about Saudi Arabia, it is not about any country,” he said.

Despite the criticism, the CEO prefers to be heavily focused on achieving tangible results and delivering meaningful climate action instead of focusing on who to blame for this global environmental problem.

“We are ready to listen to constructive arguments,” he said. “What would I tell everybody is, if you want to serve that national interest of Azerbaijan, you need to serve the global interest, which is about producing outcomes and deliverables in terms of tackling the climate crisis.”

He added: “Our focus is on delivering action, climate action, that is really consequential.”

Soltanov noted that developed countries have special responsibilities to assist others, highlighting the need for a cooperative approach to ensure that nobody is left behind.

“We don’t see the difference between oil producing or oil consuming country because oil transactions, gas transactions and coal transactions happen in a free market. Nobody is forced to buy from anybody.”

He added: “Therefore, all the countries are oil countries and all the countries are gas countries because the entire global development models are based on hydrocarbons, and we are trying to figure out these alternative models of development so that development and energy security, development and poverty are not things we choose from, they happen at the same time.”

Azerbaijan and Saudi Arabia, for example, can share their capabilities, experience, and partnerships to bring more to the table.

“We believe that, the way we look at, if there is anything Saudi Arabia, a country like Azerbaijan, could do for us, they are valuable in terms of experience and technology they acquire because they are at the forefront of the other forms of energy developments.”


Saudi Arabia to host 6th UN World Data Forum in 2026

Updated 17 November 2024
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Saudi Arabia to host 6th UN World Data Forum in 2026

  • Kingdom’s successful bid endorsed by High-Level Group for Partnership, Coordination, and Capacity-Building in Statistics (HLG-PCCB)

RIYADH: Saudi Arabia was confirmed on Friday as host of the sixth edition of the UN World Data Forum in 2026, Saudi Press Agency reported on Saturday.

The announcement was made at Friday’s conclusion of the fifth edition, held in Medellin in Colombia and attended by representatives from all 193 UN member states.

The Kingdom’s successful bid was endorsed by the High-Level Group for Partnership, Coordination, and Capacity-Building in Statistics (HLG-PCCB), recognizing Saudi Arabia’s significant progress and commitment to leveraging data for sustainable development.

Fahad Aldossari, president of the General Authority for Statistics (GASTAT), expressed his congratulations to King Salman and Crown Prince Mohammed bin Salman for their continued support.

He acknowledged their backing and the role it has played in strengthening GASTAT’s global presence and expertise, enabling it to compete on an international scale.

Aldossari noted that hosting the 6th UN World Data Forum was a testament to Saudi Arabia’s comprehensive advancements across various sectors, particularly in data and statistics.

“This forum will be an invaluable platform for sharing technical expertise, fostering partnerships with national statistical offices worldwide, and enhancing global cooperation in statistics,” he said.

He also expressed gratitude to Colombia’s government, the UN, and the National Department of Statistics (DANE) for their successful organization of the 5th forum, as well as to the HLG-PCCB and participating representatives for their dedication. 

The UN World Data Forum is a premier global event, drawing more than 20,000 participants from government bodies, national statistical offices, international and regional organizations, academia, civil society, and the private sector.

It addresses challenges in global data and statistics, fosters collaboration, and underscores the importance of data in shaping effective policies and initiatives.