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)
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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.



Hormuz Reopening to Release Wave of Oil Supply, Depress Prices

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
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Hormuz Reopening to Release Wave of Oil Supply, Depress Prices

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

Middle Eastern crude oil markets could come under further pressure if the Strait of Hormuz reopens on Friday following the US-Iran interim deal, releasing millions of barrels of oil stranded in the Middle East Gulf into global markets, industry executives said.

The wave of supply comes after Gulf producers ramped up exports via ship-to-ship transfers off the United Arab Emirates and Oman this month, which depressed spot differentials for Middle East crude to discounts on Tuesday.

Kpler analyst Muyu Xu said in a June 17 note that the reopening of the Hormuz Strait could unleash some 93 million barrels of stranded non-Iranian barrels from the Arabian Gulf, while producers are expected to continue supplying cargoes through less visible channels.

Some traders estimated that about 50 million barrels are set to be released as some cargoes had already been shipped out. In addition, the lifting of US restrictions on Iranian crude could also release some 72 million barrels stranded on tankers west of Chabahar, with volumes set to rise further if Washington grants broader sanctions relief, ‌Kpler said.

Iran's fleet has ‌been gearing up to boost exports with three of its tankers this week exiting the ‌strait, ⁠which carried about ⁠a fifth of the world's oil and liquefied natural gas shipments before the US and Israel attacked Iran on February 28.

US President Donald Trump and Iranian President Masoud Pezeshkian digitally signed the 14-point agreement to end the war on Wednesday, US and Iran officials said. Iran's foreign ministry said the agreement was already in effect.

ASIAN BUYERS COMMITTED TO SUPPLY ARRIVING JUNE TO AUGUST

While supply is set to surge, most Asian refiners have already booked crude cargoes to arrive in June to August and several refineries in China are scheduled to shut for maintenance, refining and trade sources said, reducing demand for immediate supplies.

Consultancy Energy Aspects tracked more than 1.8 million bpd of Chinese refining capacity that will be shut for turnarounds in July, including ⁠nearly 1.2 million bpd at private firms.

China's throughput, already at a near four-year low in ‌May, is expected to slide further to about 12.4 million bpd this month, before recovering ‌above 13 million bpd in July with state-owned refiners raising runs, it added.

Many Chinese refiners paused spot buying this week as they eyed the reopening ‌of the strait and details of the agreement.

Although weaker crude prices improved refinery economics and narrowed losses, fuel demand in China ‌is expected to stay subdued as a result of the country's rapid adoption of electric vehicles.

"A large-scale increase in crude buying appears unlikely unless Beijing relaxes restrictions on product exports and/or proceeds with another round of strategic petroleum reserves replenishment," said Kpler's Xu.

Some Middle Eastern crude suppliers offered cargoes to independent refiners in eastern Shandong province, two sources said, but at prices higher than sanctioned oil from Iran and Russia.

Crude sellers will need to cut prices further to attract ‌demand once the strait opens, given that some of them, including TotalEnergies, still have unsold cargoes, said one Singapore-based trader. The sources declined to be named as they were not authorized to speak ⁠to the media.

"Refiners are expecting profitability ⁠to be quite poor in the second half of the year," a South Korean industry official said.

"So rather than it being a matter of securing a specific crude, this is becoming a fight over economics," he added.

ASIA OIL DEMAND SHIFTING BACK TO MIDEAST

Still, refiners are preparing for the eventual rise in Middle Eastern supply, which is expected to cool Asia's demand for oil from the Americas. Taiwanese state refiner CPC said it was ready to import heavier grades with a higher sulphur content, to produce more bitumen and sulphur to meet domestic demand if the strait reopens. Some Middle Eastern oil producers have asked Indian refiners to consider buying the committed supplies under their term deals, which would reduce their purchase of oil via spot tenders, sources at three refiners said.

Kpler expects a gradual recovery in Indian demand for Gulf oil to potentially support an additional 400,000 bpd to 600,000 bpd of Middle Eastern imports through August as refiners rebalance their crude slate.

"Increased supply of Middle Eastern crude oil would deepen contango in regional oil benchmarks," an Asian trader said.

Benchmark Dubai's premium to swaps returned to positive territory on Wednesday after slipping into a discount of 46 cents on Tuesday, Reuters' data showed.

In a contango market, prompt prices are lower than those in future months indicating comfortable supplies.


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
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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
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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.