عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Arabia Approves ‘Golden Handshake’ Program Inspired by Global Models

Employees at the Saudi Ministry of Human Resources and Social Development booth at a conference (X)
Employees at the Saudi Ministry of Human Resources and Social Development booth at a conference (X)
TT
TT

Saudi Arabia Approves ‘Golden Handshake’ Program Inspired by Global Models

Employees at the Saudi Ministry of Human Resources and Social Development booth at a conference (X)
Employees at the Saudi Ministry of Human Resources and Social Development booth at a conference (X)

Saudi Arabia has introduced the “Golden Handshake” program to offer financial incentives for government employees to voluntarily resign.

The goal is to reduce costs related to salaries and benefits for long-serving workers, creating space for others with lower salaries and skills suited to the country’s digital transformation.

The government has allocated SAR 12.7 billion ($3.38 billion) for the first three years of the program, inspired by similar global initiatives.

As of the fourth quarter of 2024, Saudi Arabia’s public sector employs 1.2 million people, excluding the military. The kingdom spends about 40% of its budget on salaries and employee compensation, with SAR 544 billion ($145 billion) set aside for this in 2024.

Experts, who spoke to Asharq Al-Awsat, have differing opinions on the financial compensation under Saudi Arabia’s “Golden Handshake” program for government employees. One expects the severance package to range from 12 to 24 months of salary, while another estimates it could be from 24 to 60 months of salary.

While the “Golden Handshake” is not new in Saudi Arabia, where large companies offer early retirement packages, it is a new approach for the public sector, which is traditionally seen as offering job security.

The Saudi program is similar to global initiatives encouraging voluntary resignations when employees’ skills are no longer needed. For example, the US offers up to $25,000 for employees who leave voluntarily, while the UK offers up to £149,800 for retiring police officers.

Dr. Mohammed Dulaim Al-Qahtani of King Faisal University expects compensation to range from 12 to 24 months of salary. For example, with a monthly salary of SAR 15,000, the package could range from SAR 180,000 to SAR 360,000.

Badr Al-Anzi, board member of the Saudi Human Resources Association, believes the compensation could range from 24 to 60 months of salary. For example, with a monthly salary of 15,000 riyals, the minimum compensation would be SAR360,000, and the maximum could reach SAR900,000.

Priority for the program will be given to employees with lower qualifications, and it will be available only after other options, such as transfers and skill development, have been explored. Employees close to retirement are excluded.

The government has also allowed agencies to announce vacant positions internally for five days before following regular procedures, to fill positions through transfers between government departments.

The program is expected to provide financial liquidity, encourage private-sector innovation, improve government efficiency, and reduce the financial burden on the state budget. The Ministry of Human Resources and Social Development is coordinating with relevant authorities to set the program’s guidelines.

Ultimately, the “Golden Handshake” is a significant initiative aimed at improving the efficiency of the public sector, with attractive financial compensation expected for those who participate.

 

Most Viewed

 
 
Business

Chinese Factory Slump Eases, but Weak Services Signal Uneven Recovery

Workers install a tunnel‑boring machine at a factory in Jinhu county in eastern China's Jiangsu province on Aug. 25, 2026. (Chinatopix via AP)
Workers install a tunnel‑boring machine at a factory in Jinhu county in eastern China's Jiangsu province on Aug. 25, 2026. (Chinatopix via AP)
TT
TT

Chinese Factory Slump Eases, but Weak Services Signal Uneven Recovery

Workers install a tunnel‑boring machine at a factory in Jinhu county in eastern China's Jiangsu province on Aug. 25, 2026. (Chinatopix via AP)
Workers install a tunnel‑boring machine at a factory in Jinhu county in eastern China's Jiangsu province on Aug. 25, 2026. (Chinatopix via AP)

China's factory activity improved in August on stronger demand but remained in contraction, while services activity stayed weak, underscoring deepening imbalances in the economy and fueling calls for policy measures to boost the economy.

The divergence between manufacturing and service sectors suggests that China will continue to rely on manufacturing and exports to drive growth as momentum remains under pressure from lackluster domestic consumption and investment.

The official manufacturing purchasing managers' index (PMI) picked up to 49.8 from 49.2 in July, remaining below the 50-mark separating growth from contraction, a survey by the National Bureau of Statistics showed on Monday. It beat the median forecast of 49.6 in a Reuters poll.

NBS data showed both demand and output improved in August, with sub-indexes ‌for new orders ‌and production returning to expansion territory above 50.

TOO EARLY TO PREDICT ECONOMIC ‌RECOVERY

"Domestic ⁠demand seems to ⁠be coming back, although it's more likely to have been driven by AI and exports than by policy expansion," said Xu Tianchen, senior economist at the Economist Intelligence Unit.

Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said it was too early to conclude the economy had rebounded.

The non-manufacturing purchasing managers' index (PMI), which covers services and construction, remained unchanged at 49.0, matching July's reading, the weakest since December 2022.

"Because China's services sector is primarily domestically focused, this suggests domestic demand remained relatively sluggish in August," Lynn Song, ING's Greater China chief economist, said in a note. "For ⁠now, the PMI data suggests that we are due for another month of ‌relatively sluggish domestic activity data in August, with any potential rebound ‌likely to be limited."

The August PMIs for equipment manufacturing and high-tech manufacturing both came in above 51, while consumer goods ‌and high-energy-consuming industries stayed in contraction, according to data released by the NBS.

Zhang Liqun, an analyst with the ‌China Federation of Logistics & Purchasing, said that with the manufacturing PMI reading still in contraction, business confidence remained unstable.

"Continued government investment in public goods should be strengthened to effectively drive increased orders for businesses, continuously consolidate and enhance business confidence, and further strengthen factors contributing to economic stabilization and recovery."

SIGNS OF PREVAILING WEAKNESS

Economic data released earlier this month showed that growth remained under ‌pressure at the start of the second half, with goods consumption and industrial output both slowing.

Fixed-asset investment extended declines and the property market is still ⁠struggling to find a ⁠bottom more than five years into a slump.

Exports remained a growth driver, helped by robust demand for AI-related shipments that lifted prices for Chinese-made high-tech goods, but the profit squeeze felt by manufacturers relying on domestic demand weighed on overall industrial profits.

China's top leaders pledged in late July to introduce additional policies to support the economy as growth slowed to a more-than-three-year low of 4.3% in the second quarter, and vowed to accelerate fiscal spending on already-budgeted infrastructure projects for the remainder of the year.

The finance ministry recently expanded loan interest subsidies for small private firms and consumers to spur demand, while the central bank said this month it would roll out measures without signaling explicit cuts to policy rates or banks' reserve-requirement ratio.

ING's Song said the positive impact from interest subsidies "may be relatively marginal," and expects more measures in the weeks ahead.

In a sign the government will not unveil large-scale stimulus, an article published this month in the People's Daily, the Communist Party's official newspaper, said China is not excessively reliant on strong policy stimulus and that it is capable of achieving its annual economic growth target.

Business

Gold Hits Near Two-Week Low on Fed Chief’s Hawkish Stance

Gold bars are displayed at a gold jewellery shop in the northern Indian city of Chandigarh May 8, 2012. (Reuters)
Gold bars are displayed at a gold jewellery shop in the northern Indian city of Chandigarh May 8, 2012. (Reuters)
TT
TT

Gold Hits Near Two-Week Low on Fed Chief’s Hawkish Stance

Gold bars are displayed at a gold jewellery shop in the northern Indian city of Chandigarh May 8, 2012. (Reuters)
Gold bars are displayed at a gold jewellery shop in the northern Indian city of Chandigarh May 8, 2012. (Reuters)

Gold fell on Monday to its lowest in nearly two weeks after US Federal Reserve Chair Kevin Warsh signaled that interest rate hikes may be needed to ease price pressures, while escalating Middle East tensions fueled inflation fears.

Spot gold fell 0.8% to $4,417.04 per ounce by 0406 GMT, hitting its weakest level since August 19. Prices dropped more than 3% on Friday.

US gold futures declined ‌1.4% to $4,466.80.

"Gold is ‌still licking its wounds after the hawkish ‌tone struck ⁠by Warsh at ⁠Jackson Hole. US military action in Iran has put upward pressure on oil prices, and this has added to gold’s woes from an inflation standpoint," said Tim Waterer, chief market analyst at KCM Trade.

Though viewed as a hedge against inflation, gold typically loses appeal in a rising interest rate environment as it does not yield ⁠interest.

The Fed will "have work to do" if policymakers ‌don't get the confidence they need ‌that inflation is heading down to 2%, Warsh said on Friday at ‌the Jackson Hole economic symposium, coming closer than he has to ‌acknowledging rate hikes may be needed.

Markets currently see a 60% chance of a Fed rate hike in September, according to the CME FedWatch tool.

Iran's energy hub of Kharg Island is being blown to smithereens, US ‌President Donald Trump said on social media, after forces hit two rocket launchers on another island ⁠in the first ⁠known American strikes on Iran since late July. Oil prices were up more than 2%.

A series of US labor market reports is due this week, including job openings, the ADP employment report, weekly jobless claims and nonfarm payrolls data.

"NFP has the potential to either extend gold’s post-Jackson Hole softness or provide the catalyst for a short-covering bounce," Waterer said.

Spot silver fell 0.4% to $66.10, platinum declined 1.3% to $1,797.03 and palladium slipped 2.5% to $1,386.96.

BMI said silver prices were likely to stay near current levels, supported by steady investment demand and constrained mine supply, while easing physical tightness and softer demand would limit further gains.

Business

Riyadh to Host Inaugural Water Regulation Forum in November

A night view of the Saudi capital Riyadh. (SPA)
A night view of the Saudi capital Riyadh. (SPA)
TT
TT

Riyadh to Host Inaugural Water Regulation Forum in November

A night view of the Saudi capital Riyadh. (SPA)
A night view of the Saudi capital Riyadh. (SPA)

The Saudi Water Authority (SWA) will launch the inaugural edition of the Water Regulation Forum in Riyadh on November 1. Established as an annual global platform for advancing regulatory excellence and international cooperation across the water sector, the forum is being organized in strategic partnership with the International Desalination and Reuse Association (IDRA).

A statement from SWA on Sunday said the forum will bring together water regulators, policymakers, experts, and sector leaders from around the world, with the participation of 28 speakers from 24 countries, four international organizations, and 25 government entities that are counterparts to the authority.

The diverse participation reflects the range of regulatory experiences and models represented and provides an opportunity to showcase regulatory practices and exchange expertise on developing regulatory frameworks and governance across the water sector.

The forum comes amid rapid developments across the global water sector that require regulatory frameworks capable of keeping pace with changes in resources, services, technologies, and investment models. Approaches to these developments vary from one country to another according to the nature of their water resources and their institutional and regulatory frameworks.

The forum will address key issues shaping water-sector regulation worldwide, including governance, scarcity management, compliance, utility performance, private-sector partnerships and financing, water reuse, and regulatory integration, drawing on a diverse range of international experiences.

The forum will be held alongside the IDRA World Congress 2026, hosted by the Kingdom in Riyadh from November 1-5, under the patronage of Minister of Environment, Water and Agriculture Abdulrahman Alfadley.

The forum is expected to announce the launch of its first edition in 2027, serving as a platform for knowledge and expertise exchange and for strengthening cooperation among regulatory authorities worldwide.