Saudi Labor Market to Witness Radical Reforms

The Saudi Ministry of Human Resources and Social Development is committed to implementing radical reforms in the labor market in both the public and private sectors (Asharq Al-Awsat).
The Saudi Ministry of Human Resources and Social Development is committed to implementing radical reforms in the labor market in both the public and private sectors (Asharq Al-Awsat).
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Saudi Labor Market to Witness Radical Reforms

The Saudi Ministry of Human Resources and Social Development is committed to implementing radical reforms in the labor market in both the public and private sectors (Asharq Al-Awsat).
The Saudi Ministry of Human Resources and Social Development is committed to implementing radical reforms in the labor market in both the public and private sectors (Asharq Al-Awsat).

The Saudi Ministry of Human Resources and Social Development underlined its commitment to implement radical reforms in the labor market in both the public and private sectors. Those reforms, according to the ministry, include a set of initiatives that would increase economic participation, raise skills and productivity and improve market efficiency, in line with the goals of the Kingdom’s Vision 2030.

In comments to Asharq Al-Awsat, the ministry said that the reforms aim to support the development of existing systems and regulations, thus contributing to reforming the labor market and providing the appropriate legislative environment for the private sector, increasing its growth and creating an appropriate work environment that motivates the workers.

“The Saudi labor market has witnessed in recent years an escalating and continuous development, which reflects the leadership’s determination to support this sector as the backbone of the economy. Moreover, the Kingdom is witnessing an influx of huge investments, which requires keeping pace with the development by benefiting from the experiences of other countries, to reach the aspired goals under the leadership of the Saudi Crown Prince,” a former member of the Council of Saudi Chambers, Abdullah Al-Meleihi, told Asharq Al-Awsat.

Al-Meleihi added that the proposed amendments aim to improve the work environment, raise efficiency and maximize competitiveness to meet the requirements of the new leading projects, including The Line and NEOM.

Consultant and professor of law at the Institute of Public Administration in Riyadh, Dr. Osama Al-Obaidi, told Asharq Al-Awsat that the draft amendment of the labor system aims to improve the business environment, reform the labor market, and provide an appropriate legal and regulatory framework for the development of the private sector, as well as supporting women’s participation.

Al-Obaidi stated that reducing the percentage of required nationalization for companies would help curb the costs and increase profits, thus boost economic growth.

The amendments will also lead to an increase in the localization of jobs by reducing the weekly working hours to 40 hours instead of 48 hours and adjusting the working hours in Ramadan to 30 hours per week instead of 36 hours, according to Al-Obaidi.

For his part, Economist Dr. Khalil Khoja told Asharq Al-Awsat that the package of amendments, proposals, procedures and initiatives recently launched by the Ministry of Human Resources and Social Development would enhance the digital economy

“The amendments cannot be separated from the Kingdom’s plan to provide decent job opportunities for citizens by intensifying rehabilitation and training programs that aim to produce qualified and professional cadres,” he emphasized.



OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters
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OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters

OPEC cut its forecast for global oil demand growth this year and next on Tuesday, highlighting weakness in China, India and other regions, marking the producer group's fourth consecutive downward revision in the 2024 outlook.

The weaker outlook highlights the challenge facing OPEC+, which comprises the Organization of the Petroleum Exporting Countries and allies such as Russia, which earlier this month postponed a plan to start raising output in December against a backdrop of falling prices.

In a monthly report on Tuesday, OPEC said world oil demand would rise by 1.82 million barrels per day in 2024, down from growth of 1.93 million bpd forecast last month. Until August, OPEC had kept the outlook unchanged since its first forecast in July 2023.

In the report, OPEC also cut its 2025 global demand growth estimate to 1.54 million bpd from 1.64 million bpd, Reuters.

China accounted for the bulk of the 2024 downgrade. OPEC trimmed its Chinese growth forecast to 450,000 bpd from 580,000 bpd and said diesel use in September fell year-on-year for a seventh consecutive month.

"Diesel has been under pressure from a slowdown in construction amid weak manufacturing activity, combined with the ongoing deployment of LNG-fuelled trucks," OPEC said with reference to China.

Oil pared gains after the report was issued, with Brent crude trading below $73 a barrel.

Forecasts on the strength of demand growth in 2024 vary widely, partly due to differences over demand from China and the pace of the world's switch to cleaner fuels.

OPEC is still at the top of industry estimates and has a long way to go to match the International Energy Agency's far lower view.

The IEA, which represents industrialised countries, sees demand growth of 860,000 bpd in 2024. The agency is scheduled to update its figures on Thursday.

- OUTPUT RISES

OPEC+ has implemented a series of output cuts since late 2022 to support prices, most of which are in place until the end of 2025.

The group was to start unwinding the most recent layer of cuts of 2.2 million bpd from December but said on Nov. 3 it will delay the plan for a month, as weak demand and rising supply outside the group maintain downward pressure on the market.

OPEC's output is also rising, the report showed, with Libyan production rebounding after being cut by unrest. OPEC+ pumped 40.34 million bpd in October, up 215,000 bpd from September. Iraq cut output to 4.07 million bpd, closer to its 4 million bpd quota.

As well as Iraq, OPEC has named Russia and Kazakhstan as among the OPEC+ countries which pumped above quotas.

Russia's output edged up in October by 9,000 bpd to about 9.01 million bpd, OPEC said, slightly above its quota.