Saudi Arabia: Announces Key Labour Law Amendments to Improve Work Environment

The Saudi government has approved key amendments to several articles of the Labour Law, aiming to create a more attractive work environment and contribute to sustainable development in line with the goals of Vision 2030.

The Human Resources and Social Development Ministry has stated that the new amendments include 38 articles, deleting seven articles, and adding two new articles to the Labour Law.

These amendments align with the Saudi employment market strategy as well as international agreements ratified by the country.

The ministry has stated that the new amendments will take effect after 180 days from the date of their publication in the official Gazette.

The amendments aimed to improve the labour market in the country, enhance job stability, preserve the rights of parties to the contractual relationship, in addition to developing human resources, enhancing training opportunities for workers, and increasing job opportunities for citizens.

The amendments took into account the interests of all parties to the contractual relationship.

These included an expansion of the item on holidays and labour contracts; adding definitions of the terms: resignation and assignment; adding an article specifying the procedures for resignation; amending the grievance procedures for the worker; and adding penalties for practicing the activity of employing workers without a licence from the ministry.

The new amendments also stipulate that the employer must formulate a special policy for the training and qualification of employees in order to raise their skills and improve their standard.

A number of amendments were also made in the item on maritime work.

The ministry has explained that the new amendments were made after an extensive study.

This study involved standard comparisons with labour laws in several countries as well as an analysis of best global practices.

Over 1,300 participants offered their opinions and suggestions on the proposed amendments to various articles of the Labour Law.

These inputs were collected via the Istitlaa survey platform, run by the National Competitiveness Centre.

This is in addition to sharing opinions and advice with private sector establishments, relevant government agencies, labour committees, and a number of specialists and experts in human resources through workshops and consultative meetings.

These amendments are formulated to reinforce the directive to develop existing systems and regulations.

The aim is to contribute to supporting the market, production and service sectors.

The amendments also provide an appropriate legislative environment and support small and medium enterprises.

Ultimately, the goal is to create more job opportunities for citizens and achieve sustainable development goals.

These goals align with the labour market strategy and the targets of Vision 2030.

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Saudi Arabia: Allows 100% Foreign Ownership in Most Business Sectors

The Saudi Vice Minister of Commerce and CEO of the National Competitiveness Centre (NCC) noted that the Kingdom allows 100% foreign ownership in most business sectors, a significant factor in attracting international investment.

This was highlighted during the Saudi-Korean Business Forum, where the Commerce Minister has emphasised that Saudi Arabia’s Vision 2030 has led to substantial economic diversification, fostering sustainable and inclusive growth, and encouraging innovation across various business sectors.

The forum, attended by the Saudi Ambassador to Korea and approximately 400 representatives from both public and private sectors, has highlighted the strategic trade relations between Saudi Arabia and Korea.

The Commerce Minister highlighted the collaborative efforts to boost economic prosperity, noting that trade volume between the two nations reached $35 billion from 2019 to 2023. Additionally, 174 commercial records were issued to Korean companies up to last April.

The Korean Minister of Trade emphasised the expanding Saudi-Korean economic and trade partnership across vital sectors such as automotive and shipbuilding, as well as emerging areas like AI, data centres, and smart cities.

He also noted the growth in trade services and stressed that the Korea-GCC Free Trade Agreement would elevate economic cooperation to a new level.

The NCC CEO outlined significant reforms aimed at boosting the Kingdom’s competitiveness.

She has highlighted the positive transformations in the Saudi economy and business environment.

Notably, 820 economic reforms have been implemented by 60 government agencies since 2016 in nine key areas, with 1,200 laws and regulations issued and updated to strengthen the legal framework.

The NCC CEO has also emphasised the digitisation of government services, which has reached 97%, and the activation of virtual commercial court sessions at a 99% rate, significantly improving litigation efficiency.

She has also mentioned that the establishment of the Saudi Business Centre has streamlined business licensing requirements by 55%.

The forum, organised by the NCC, the Federation of Saudi Chambers of Commerce, and the Korean Chamber of Commerce and Industry, aimed to expand economic partnership opportunities between the two nations.

It included two dialogue sessions: “Innovation and Technology,” featuring representatives from the Ministry of Investment, Monshaat, SDAIA, and Korean companies Naver and Rebellions, which discussed the role of government initiatives in promoting innovation and technology adoption.

The second session, “Advanced Manufacturing and Infrastructure,” was attended by representatives from various ministries and institutes, and tackled key developing sectors in advanced manufacturing and the challenges and opportunities posed by digital transformation in infrastructure development.

Nine agreements were signed by companies from both sides, marking a successful conclusion to the forum.

The event was held on the second day of the Saudi delegation’s visit to Korea from 29 July 2024 to 31 July 2024.

It was preceded by meetings between the Commerce Minister and Korea’s Minister of Trade, Industry and Energy, and Minister of Trade, where discussions focused on strengthening trade relations and cooperation in global trade issues, particularly in removing trade barriers and increasing exports.

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Saudi Arabia: Oversight And Anti-Corruption Authority Law Approved

Al-Eqt, 23 July 2024: The Council of Ministers has approved the Oversight and Anti-Corruption Authority Law.

The Authority’s Chairman has stated that the law will contribute to strengthening the role of the Authority in exercising its powers with regard to combating financial and administrative corruption in all its forms and manifestations.

The law will contribute to strengthening the role of the Authority in combating financial and administrative corruption.

It aims to preserve public funds and protect the nation’s capabilities.

Additionally, it ensures that perpetrators of corruption crimes are prosecuted and held accountable as per legal and regulatory requirements.

The law also facilitates the recovery of funds and proceeds resulting from these crimes to the state’s public treasury.

The law affirms the complete independence of the authority and empowers it by granting the necessary powers to exercise its duties, perform its tasks, and consolidate its role with complete impartiality.

He has stated that the system identifies the types of corruption crimes the Authority is responsible for.

These include bribery, assault on public funds, abuse of power, and any other crime classified as a corruption crime under statutory provisions.

The law also outlines the authority’s powers in administrative oversight, investigation and administrative prosecution, safeguarding integrity, promoting transparency, and international cooperation with regional and international bodies and organisations within the authority’s remit.

It covers investigating aspects of financial and administrative corruption, as well as criminal investigation and prosecution.

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Saudi Arabia: Central Bank Launches Government Banking Services Platform

Al-Sharq Al-Awsat, 14 July 2024: The Saudi Central Bank (SAMA) has launched the government banking services platform (Naqd), which allows government agencies to easily access their accounts with the Central Bank and carry out financial operations on a secure digital platform.

According to SAMA, this step comes within the framework of the Central Bank’s strategy to provide banking services to government agencies and support digital development.

It will contribute to the digitisation of government agencies’ financial operations services offered for their accounts with the Saudi Central Bank, under a unified and secure digital platform.

It will also facilitate round-the-clock access to their account information and account management, in addition to immediate follow-up of the operations carried out to and from government agencies’ accounts.

The platform aims to provide electronic banking services that support government financial transactions.

It is designed to improve the user experience, improve efficiency and productivity in financial transactions by using the latest technology, and contribute to reducing the time required for implementing government banking procedures.

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Saudi Arabia: Shura Calls on External Investment Laws Review

Al-Watan, 8 July 2024: The Shura Council has called upon the Investment Ministry to list the regulations and decisions related to the field of foreign direct investment for the Saudi investor, review them, and make the necessary proposals.

The aim is to improve national investments in international trade.

In its decision, the Shura Council has also called on the Ministry to develop a methodology to measure the generation of Saudi jobs in investment, and to build indicators to measure and verify them periodically, in line with the labour market strategy.

The Council has stressed that the Ministry, in coordination with the General Authority for Statistics – must develop a methodology to build an investor confidence index and measure it periodically in line with international practices.

In the same decision, the Shura Council has called on the Ministry of Investment to work with the Distinguished Residence Centre to develop sustainable policies and work mechanisms that ensure compatibility and integration between the preparation of sectoral investment plans and distinguished residency products.

It has also called on the Ministry to work with the media system to develop specific communication and media initiatives that enhance investment confidence in the Kingdom and protect it from external media misinformation.

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Saudi Arabia: Supreme Judicial Council Approves Three-Judge Panel System For Criminal Cases

Arab News, 3 July 2024: Criminal cases in the Kingdom will be heard by a three-judge panel at criminal courts, pending approval from the head of the Supreme Judicial Council.

The decision will be implemented gradually in collaboration with the relevant departments of the council and the Ministry of Justice.

The council has issued a series of decisions aimed at promoting judicial safeguards and improving the quality of judgments.

These include approval for family cases to be exclusively heard by 12 personal status courts and a selection of personal status panels in general courts located in regions that do not have personal status courts available.

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Saudi Arabia: Deadline for Transferring Domestic Workers Salaries Via Digital Wallets Announced

Al-Madina, 22 June 2024: The Musaned Program has confirmed that transferring domestic workers’ salaries via digital wallets will be mandatory as of the beginning of next July, as part of the measures being implemented to control the recruitment sector.

The “Musaned” program confirmed that transferring domestic workers’ salaries via digital wallets will be mandatory starting from the beginning of July 2024, as part of the measures being implemented to regulate the recruitment sector.

The program has advised benefiting from the domestic workers’ salaries icon available in digital wallets, as it is a tool for documenting wage payment.

Only the employer can transfer their salaries, as the worker’s data is available to them.

In a related context, the program indicated that until 1 July 2024, transfers can be made through the channels approved by the “Musaned” platform’s domestic workers’ salary transfer system to document the payment of salaries.

The Musaned platform for recruiting domestic workers achieved remarkable achievements in the recruitment sector for the year 2023.

The total number of recruitment contracts made through the Musaned platform reached more than two million contracts, in a proactive step that imrpoves the platform’s international status.

New countries were added to the list of countries available for recruiting domestic workers, such as Ethiopia, Burundi, Sierra Leone, Tanzania, and Gambia.

The number of countries available for recruiting female domestic workers reached 33 countries, providing many different options for beneficiaries.

In response to economic changes, the Ministry has reviewed costs, services provided, and systems.

As a result, the platform lowered the maximum recruitment prices for domestic workers in 2023 for several countries.

These countries included the Philippines at 14,700 riyals, Uganda at 8,300, Kenya at 9,000 riyals, Sri Lanka at 13,800, Bangladesh at 11,750 riyals, and Ethiopia at 5,900 riyals.

With increased competition among service providers, beneficiaries can find the most affordable options with the highest service quality and satisfaction through the platform.

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