Saudi Arabia Links Recruitment to Digital Systems to Strengthen Compliance and Wage Protection

Participants at the Global Labor Market Conference in Riyadh (SPA)
Participants at the Global Labor Market Conference in Riyadh (SPA)
TT

Saudi Arabia Links Recruitment to Digital Systems to Strengthen Compliance and Wage Protection

Participants at the Global Labor Market Conference in Riyadh (SPA)
Participants at the Global Labor Market Conference in Riyadh (SPA)

Saudi Arabia’s labor market is undergoing rapid transformation driven by reforms under Vision 2030, aimed at strengthening compliance, protecting wages, and improving the efficiency of the business environment. These efforts run in parallel with expanding the integration of recruitment into digital systems, advancing international partnerships to regulate labor mobility, and supporting workforce diversification, thereby reinforcing institutional trust and international cooperation in labor market governance.

In this context, Dr. Tariq Al-Hamad, Deputy Minister for International Affairs at the Ministry of Human Resources and Social Development, told Asharq Al-Awsat that labor market reforms in the Kingdom have delivered tangible progress in modernizing regulations, enhancing worker protection, and creating a more dynamic and inclusive work environment. He noted that these transformations are no longer confined to the domestic level, but have expanded to include a more structured international dimension through bilateral agreements, including those signed with Nepal and Nigeria, which serve as governance tools to regulate labor mobility and strengthen worker protection.

Labor market shifts

Al-Hamad said the reforms have achieved measurable progress in updating regulatory frameworks, enhancing worker protection, and improving operational efficiency, with clear gains in participation, compliance, and productivity. He added that updates to labor mobility regulations since 2021 have enabled greater flexibility for workers to move between employers within regulatory frameworks aligned with international best practices. This shift was reinforced by the Contractual Relationship Improvement Initiative launched in March 2021, which marked a pivotal transformation in regulating job mobility.

At the institutional level, more than 11 million employment contracts have been documented via the Qiwa Platform, enhancing transparency and raising compliance levels in the private sector. He added that the implementation of a wage protection system has introduced preventive safeguards and strengthened trust between parties to employment contracts.

Strengthening worker protection

Alongside these changes, the worker protection framework has seen notable progress. Al-Hamad stated that more than 90 percent of private-sector establishments are compliant with the Wage Protection Program, ensuring accurate and timely salary payments.

He added that labor dispute resolution procedures have become faster, more efficient, and more transparent. The reforms have also driven greater inclusivity, with female labor force participation more than doubling between 2018 and 2024, one of the fastest growth rates globally. Meanwhile, around 2.48 million Saudis have joined private-sector jobs since 2020.

Deputy Minister for International Affairs at the Ministry of Human Resources and Social Development, Dr. Tariq Al-Hamad (Asharq Al-Awsat)

International cooperation

As reforms accelerate, they are no longer confined to the domestic level, increasing the need for a structured international framework to sustain them. Al-Hamad emphasized that organized international labor cooperation is a strategic priority, as it strengthens the Kingdom’s position as a partner committed to ethical recruitment, regulatory modernization, and shared responsibility. It also reinforces institutional trust and diplomatic cooperation in labor markets.

He explained that these agreements align cross-border labor mobility with modern regulatory standards, transparency requirements, and digital compliance systems. The expansion of such agreements, including those with Bangladesh, Nepal, and Nigeria, reflects a shift from traditional recruitment models toward long-term institutional partnerships between governments, providing more stable labor mobility channels and strengthening trust.

Governance enhancement

Reflecting this direction, Al-Hamad said agreements with Nepal and Nigeria regulate the full worker lifecycle, from recruitment licensing and contract documentation to wage transparency and dispute coordination and resolution mechanisms. He added that they enhance oversight of recruitment agencies, clarify contractual obligations, and establish institutional cooperation between governments to monitor compliance and resolve complaints efficiently.

He also noted that linking these agreements to digital infrastructure, such as the Qiwa platform and the Wage Protection Program, ensures that commitments are translated into enforceable mechanisms supported by real-time monitoring. This is complemented by joint oversight frameworks and regular information exchange, strengthening continuous supervision and accelerating the handling of labor cases.

Aligning skills with economic needs

As part of improving market efficiency, Al-Hamad stressed that aligning labor mobility with sectoral economic needs is a core pillar of the labor market strategy. Recent agreements are increasingly based on specific sector needs, ensuring recruitment is driven by actual demand rather than volume, particularly in sectors such as construction, tourism, logistics, healthcare, and advanced services.

He explained that the ministry relies on digital data through the Qiwa platform to continuously analyze market needs and identify skills gaps, allowing recruitment to be directed in line with economic requirements. Coordination with partner countries prior to worker arrival also helps verify skills, improve workforce readiness, and reduce skills gaps from the outset of employment.

He added that workforce planning is increasingly integrated with major national projects to ensure expatriate labor complements, rather than replaces, localization efforts. This is supported by programs such as Nitaqat, which incentivize the hiring of national talent across sectors.

International recognition of reforms

At the global level, these reforms have received growing recognition. Al-Hamad noted that the International Monetary Fund has pointed to tangible outcomes, including declining unemployment among Saudis, increased female participation in the labor market, and growth in private-sector employment.

He added that the “A Decade of Progress” report, developed in cooperation with the World Bank, highlighted structural transformations in the labor market.

The International Labour Organization has also commended the Kingdom’s role in developing labor policies and engaging in global dialogue, reflecting its growing status as a model in labor market reform, inclusivity, and economic flexibility.

Future priorities

Al-Hamad concluded that the next phase will focus on deepening international cooperation at both bilateral and multilateral levels by expanding labor agreements with new countries and strengthening partnerships with international organizations such as the International Labour Organization and the World Bank. These efforts aim to support knowledge transfer and policy development.

He added that the ministry is working to enhance collaboration with the private sector, academic institutions, and international stakeholders to keep pace with labor market transformations, with the goal of consolidating the Kingdom’s position as a trusted global partner in labor market development and delivering sustainable outcomes.



Three Saudi-Flagged Vessels Transit Strait of Hormuz after Washington-Tehran Agreement

Vessels in the Strait of Hormuz near the beach of Bandar Abbas, Iran, June 17, 2026. Amirhosein Khorgooi/ISNA/via WANA (West Asia News Agency)/Handout via REUTERS
Vessels in the Strait of Hormuz near the beach of Bandar Abbas, Iran, June 17, 2026. Amirhosein Khorgooi/ISNA/via WANA (West Asia News Agency)/Handout via REUTERS
TT

Three Saudi-Flagged Vessels Transit Strait of Hormuz after Washington-Tehran Agreement

Vessels in the Strait of Hormuz near the beach of Bandar Abbas, Iran, June 17, 2026. Amirhosein Khorgooi/ISNA/via WANA (West Asia News Agency)/Handout via REUTERS
Vessels in the Strait of Hormuz near the beach of Bandar Abbas, Iran, June 17, 2026. Amirhosein Khorgooi/ISNA/via WANA (West Asia News Agency)/Handout via REUTERS

Three Saudi-flagged supertankers transited the Strait of Hormuz on Thursday, according to ship-tracking data, just hours after US President Donald Trump signed a temporary agreement with Iran aimed at ending the conflict and reopening the vital shipping route.

According to a Reuters analysis of maritime traffic data, the three vessels were carrying a combined 6 million barrels of crude oil. The tankers departed from Saudi ports on the Arabian Gulf, marking the largest commercial oil shipment to pass through the strait in weeks.

In recent months, Saudi Arabia had relied primarily on its Red Sea export terminal at Yanbu to ship crude to global markets, adopting the route as a strategic alternative to avoid risks stemming from the conflict that erupted on Feb. 28 and disrupted the flow of hundreds of millions of barrels of oil from Gulf producers through the Strait of Hormuz.

The transit of the Saudi tankers is seen as a strong indication that operations along the waterway are beginning to normalize and that the geopolitical risks that have threatened global energy security in recent months may be easing.


EU Wrestles over How to Tackle China Export Flood

There is a growing consensus in the European Union that it is too dependent on China. Nicolas TUCAT / AFP/File
There is a growing consensus in the European Union that it is too dependent on China. Nicolas TUCAT / AFP/File
TT

EU Wrestles over How to Tackle China Export Flood

There is a growing consensus in the European Union that it is too dependent on China. Nicolas TUCAT / AFP/File
There is a growing consensus in the European Union that it is too dependent on China. Nicolas TUCAT / AFP/File

EU leaders will grapple on Thursday over whether the bloc needs new beefed-up trade defenses to curb the surge of Chinese exports deemed an existential threat to European industry and jobs by Brussels.

There is a growing consensus in the European Union that it is too dependent on China, and Brussels fears this makes it vulnerable to potential coercion and supply shocks, AFP said.

The bloc's trade deficit in goods hit around 360 billion euros ($417 billion) last year, meaning Chinese exports sharply exceeded the EU's.

"Our trading relationship with China has reached a point that requires a reset. Not confrontation, but rebalancing," EU trade chief Maros Sefcovic said.

While EU capitals agree on a common diagnosis on China, the positions differ on the cure.

One way to beef up the EU's arsenal could be creating a new tool to impose sector-specific tariffs such as chemicals or green tech -- taking a page out of President Donald Trump's playbook.

French President Emmanuel Macron last month called for a "European equivalent of Section 301" -- the trade tool Trump has employed to set sweeping tariffs -- arguing Europe's "sovereignty is at stake".

Germany has until now adopted a cautious posture because its economy is more exposed to potential retaliation, while Spain has sought to avoid tensions as it chases Chinese investment.

But Berlin appeared to be coming around to France's way of thinking.

A German official said Berlin was "open" to new tools if they are necessary so long as they were "not targeted at specific recipients".

Concern about Chinese dominance is not limited to the EU.

Fears are rising in the West over Beijing's control in the market for rare earth minerals used in everyday electronic appliances, and China was on the menu during talks between G7 leaders in France this week.

The real wake-up call came last year when China imposed export controls on rare earths, sending shockwaves across supply chains globally.

- China's massive subsidies -

Brussels often evokes the need for fair competition, pointing to the unfair advantage Chinese companies have because of massive state subsidies.

Between 2005 and 2024, Chinese firms received around three to eight times more government support than firms in the Organization for Economic Co-operation and Development, according to the OECD, which called it "a conservative estimate".

Over dinner, the leaders will chew over what current tools the EU can use to address the imbalance and whether there should be new instruments and actions, which the European Commission has stridently pushed for.

The discussion will reveal just how far the EU will go to protect its industries, with leaders due to guide the commission on its next steps.

"There may be a member state or two who are more cautious," an EU diplomat said, but he said the majority see "the situation the same way".

"We have to be ready to do more," he said.

The commission, in charge of EU trade policy, is also mulling whether to introduce safeguard measures for the chemicals industry, like it did for steel.

- EU appetite for a fight? -

Even as its resolve appears to be hardening, the EU has showed no appetite to trigger a broader trade war with China.

Fears over Chinese retaliation are not unfounded.

After the EU hit Chinese electric cars with higher tariffs in 2024, China imposed anti-dumping duties on European cognac.

And Beijing has vowed to retaliate if the EU pushes through rules that would exclude certain products manufactured outside the bloc from public contracts.

Sefcovic has invited Chinese Commerce Minister Wang Wentao to Brussels later this month as the bloc still hopes it can prevent escalation through dialogue with China -- but an EU official would not confirm the visit.


Oil Prices Sink Further as Trump Signs Deal to Reopen Hormuz

(FILES) This aerial view shows the fuel depot of Aral at the Ruhr Oel petroleum refineries of BP Gelsenkirchen GmbH in Gelsenkirchen, western Germany on March 9, 2026. (Photo by Ina FASSBENDER / AFP)
(FILES) This aerial view shows the fuel depot of Aral at the Ruhr Oel petroleum refineries of BP Gelsenkirchen GmbH in Gelsenkirchen, western Germany on March 9, 2026. (Photo by Ina FASSBENDER / AFP)
TT

Oil Prices Sink Further as Trump Signs Deal to Reopen Hormuz

(FILES) This aerial view shows the fuel depot of Aral at the Ruhr Oel petroleum refineries of BP Gelsenkirchen GmbH in Gelsenkirchen, western Germany on March 9, 2026. (Photo by Ina FASSBENDER / AFP)
(FILES) This aerial view shows the fuel depot of Aral at the Ruhr Oel petroleum refineries of BP Gelsenkirchen GmbH in Gelsenkirchen, western Germany on March 9, 2026. (Photo by Ina FASSBENDER / AFP)

Oil prices tumbled again Thursday after US President Donald Trump and his Iranian counterpart signed off on a deal to end their war and reopen the Strait of Hormuz.

The news boosted optimism for a lasting peace between the two nations after more than three months of war that has rattled energy markets and fueled a fresh spike in inflation.

However, the upbeat mood on trading floors was tempered by expectations the US Federal Reserve will hike interest rates before year's end, after its new boss held his first policy meeting and acknowledged "persistently high prices are a burden for the American people", reported AFP.

Trump put his signature to the memorandum of understanding in Versailles after a G7 summit, telling reporters: "Just signed it."

Iranian foreign ministry spokesman Esmaeil Baqaei, quoted by state news agency IRNA, said the document "was finalized with the signatures of the presidents".

All eyes are now on the strait, through which a fifth of world oil normally passes and which Tehran effectively closed after the United States and Israel launched their war on Iran on February 28.

"As a first step, Islamic Republic of Iran will instantly reopen the Strait of Hormuz and the United States of America will immediately lift the naval blockade," Pakistan's Prime Minister Shehbaz Sharif, whose officials mediated the agreement, said on X.

The deal will see Washington commit to immediately waive oil sanctions and facilitate the release of a $300 billion reconstruction fund, while Tehran agrees to dilute its enriched uranium as talks on a longer-term agreement are held.

Crude fell more than three percent Thursday, extending the losses sustained since news broke at the weekend. Both main contracts have plummeted more than 15 percent since last week, when talk of an agreement began swirling.

"A signed MOU and a faster path toward reopening the Strait of Hormuz should pull some of the panic premium out of crude," wrote Stephen Innes at SPI Asset Management.

"That matters because oil was not just trading war risk. It was trading the possibility that reserve drawdowns and blocked Gulf flows would create an energy cliff."

Equities were mixed as they struggled to maintain the positive momentum seen this week.

Seoul was again at the forefront of the gains, ploughing past 9,000 points for the first time thanks to another surge in chip titans Samsung and SK hynix as the AI boom continues apace.

"South Korea supplies around 80 percent of the world's memory chips, and artificial intelligence is expected to continue growing for at least another decade," Kim Dae-jong, a professor at Sejong University, told AFP.

"Semiconductors account for roughly half of South Korea's industrial output, and this is seen as the biggest reason why Kospi broke through the 9,000-point mark."

Tokyo, Singapore, Taipei, Mumbai and Manila also rose but Hong Kong, Shanghai, Sydney, Wellington, Bangkok and Jakarta fell along with London. Paris was flat while Frankfurt rose.

The mixed performance followed the Fed's latest policy meeting that saw it hold rates as expected but indicate it could hike in the next six months.

The gathering was the first for new boss Kevin Warsh, who flagged the fact that inflation has been well above the bank's two percent target for years but vowed to "deliver price stability".

"Persistently high prices are a burden for the American people, but the recent past need not be prologue," he said after the meeting at which he also wanted wide-ranging reforms at the bank.

Warsh was appointed by Trump, who has launched an unprecedented assault on the Fed's independence and called previous boss Jerome Powell incompetent for not cutting rates enough.

Analysts pointed out that the Fed's post-meeting statement did not make mention of an easing bias, as it had done previously.

The fact there was more emphasis on prices rather than jobs was also noted.

Data this month has shown inflation at a three-year high, while the labor market remains healthy.

"While there is no suggestion the Fed's dual mandate has shifted away from unemployment as well as price stability, markets have been left with a view (that) the emphasis appears to have shifted to the latter for now," wrote National Australia Bank's Gavin Friend.