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Federation of Saudi Chambers Launches Employee Leasing Initiative with 50 Financing Entities

Federation of Saudi Chambers Launches Employee Leasing Initiative with 50 Financing Entities

Friday, 12 August, 2022 - 08:00
Initiatives to improve the market of HR companies and expand their business. (Asharq Al-Awsat)

The Federation of Saudi Chambers (FSC) launched an initiative to encourage banks and various financial institutions to provide finance products and installment services for employee leasing in the Saudi market. This comes in light of the high demand for manpower and the increase in the volume of investments and projects.

The initiative was revealed during an extensive meeting held by the National Committee for Human Resources Companies at the headquarters of the Federation of Saudi Chambers, in the presence of the Saudi Central Bank and more than 50 representatives of banks and financing entities operating in the Kingdom.

Human resources companies presented studies indicating the clients’ need for employee leasing finance and installment services.

They pointed to their reliance on stable and sustainable products and industry that constitute an investment opportunity for all in light of the volume of the labor market in the Kingdom.

According to a statement by the FSC, the discussed studies pointed out that human resources companies provide various advanced services and products, including leasing by the hour.

They have also invested millions of riyals in advanced technologies and systems to manage their various processes.

The FSC, represented by the National Committee for Human Resources Companies, underlined its demand for financing entities to provide financing solutions for employee leasing sector by reviewing the components, market size and the available opportunities.

The global HR market is estimated at about $400 billion, while the Kingdom's share of this amount does not exceed 0.4%, with investments estimated at more than SAR6 billion ($1.6 billion), despite being ranked the third globally in terms of attracting foreign labor.

The companies’ share at the Saudi labor market, which includes 10.5 million workers, is about 8% in the private sector and domestic workers.

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