عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Labor Ministry Improves Contracts to Increase Efficiency

Saudi Ministry of Labor and Social Development Logo
Saudi Ministry of Labor and Social Development Logo
TT
20
TT

Saudi Labor Ministry Improves Contracts to Increase Efficiency

Saudi Ministry of Labor and Social Development Logo
Saudi Ministry of Labor and Social Development Logo

The Saudi labor market is witnessing a tangible progress in improving contracts and raising its efficiency and competitiveness, according to the Ministry of Labor and Social Development.

The Ministry asserted it wants to ensure that the rights of workers are protected through the mandatory electronic documentation program of labor contracts of employees in the private sector by the end of 2020.

The program aims to protect the rights of workers by archiving and documenting their contracts so that they are aware of the data and whether they approve its content or not.

It aims to protect the rights of the parties to the relationship, support emerging business, and remove barriers to business growth.

According to the minister’s new decision, all new contracts will be documented electronically. 

The Ministry has recently held a seminar with the private sector in Riyadh to exchange views on improving the work environment and attract national talents, with the participation of Minister of Labor and Social Development Ahmed al-Rajhi, and a number of business owners and entrepreneurs in the private sector.

Business owners and private sector officials believe it is important to improve the contractual relations in order to create an attractive work environment for citizens and attract competencies to the labor market to serve the Kingdom's economy.

Most Viewed

 
Business

Kuwait’s Merged Warba-Gulf Bank Can Grow for 10 years without Capital Hike

The Kuwait national flag flies at half-mast as the country starts mourning the death of Kuwait's ruling Emir Sheikh Sabah al-Ahmad al-Sabah, in Kuwait City, Kuwait, September 29,2020. REUTERS/Stephanie McGehee
The Kuwait national flag flies at half-mast as the country starts mourning the death of Kuwait's ruling Emir Sheikh Sabah al-Ahmad al-Sabah, in Kuwait City, Kuwait, September 29,2020. REUTERS/Stephanie McGehee
TT
20
TT

Kuwait’s Merged Warba-Gulf Bank Can Grow for 10 years without Capital Hike

The Kuwait national flag flies at half-mast as the country starts mourning the death of Kuwait's ruling Emir Sheikh Sabah al-Ahmad al-Sabah, in Kuwait City, Kuwait, September 29,2020. REUTERS/Stephanie McGehee
The Kuwait national flag flies at half-mast as the country starts mourning the death of Kuwait's ruling Emir Sheikh Sabah al-Ahmad al-Sabah, in Kuwait City, Kuwait, September 29,2020. REUTERS/Stephanie McGehee

The new Islamic banking entity resulting from the merger of Kuwait’s Warba Bank and Gulf Bank will be able to grow for about ten years without raising capital, Warba’s chief executive said.

Shaheen al-Ghanem told Reuters that Gulf Bank’s 7 billion dinars ($22.9 billion) in assets would grow significantly once brought under the Islamic banking framework.

"This gives us a larger market share in Kuwait," he added.

Warba Bank, which has assets of about 6 billion dinars, acquired a 32.75% stake in Gulf Bank in April for about $1.63 billion, and the two began initial steps the following month towards a merger.

Kuwait's central bank on Monday gave Gulf Bank preliminary approval to convert into a sharia-compliant bank.

Al-Ghanem said that the merger with Warba would speed up Gulf Bank's process of converting into an Islamic lender, as systems, procedures, a sharia board, products and staff were already in place.

Warba, meanwhile, is set to gain from Gulf Bank's strong retail business and its more than 50 branches, taking the combined network to about 70 and creating what al-Ghanem said was an institution with the largest branch network in Kuwait.

He said that Gulf Bank has yet to use its capacity to issue Tier 1 or Tier 2 instruments, a "hidden advantage" that the new entity must use to issue sukuk after the merger.

Kuwait hosts ten local banks – five conventional, four Islamic and one specialized lender - and local branches of foreign banks.

Al-Ghanem expects there to be more mergers among Kuwaiti banks, something he views as a healthy development.

"Many bank owners are currently thinking about their next move: remain independent or merge," he said.

In 2024, Kuwait Finance House, Kuwait’s largest Islamic bank, merged with Bahrain’s Ahli United Bank, which also owns a Kuwaiti subsidiary of the same name.