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Home - March 2021

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ECONOMIC TRENDS

Data from the fourth quarter of 2020 points to a strong rebound, with both oil and non-oil sectors contributing positively to economic growth.


OIL AND GAS

Preventing a flood of oil has helped oil producers get a better price for their product at a time when global consumption starts to gather pace.

REAL ESTATE

Even with the pandemic, the amount of mortgages lent to nationals rose by a whopping 87% in 2020.

FINANCIAL SERVICES

Digital transformation has allowed financial institutions in the country to provide seamless service to customers during these tough times.


RENEWABLE ENERGY

The government has bold plans to source half of the country’s electricity from renewable energy in less than a decade.


CEMENT

Manufacturers reported impressive sales growth from late 2020 to early 2021 despite challenges brought about by the pandemic.

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 IN THIS EDITION

New labour reforms taking effect in March in Saudi Arabia are set to boost labour mobility, boost worker-employee relationship and attract highly skilled foreign workforce in the country.

The Labor Reform Initiative (LRI), part of the National Transformation Program, will develop a robust job market, boost labour skills and create a dynamic work environment in the kingdom.

“LRI allows job mobility and regulates the Exit and Re-Entry Visa issuance. It applies to all expatriate workers in the private sector, and includes specific control measures put in place to take into account the rights of both parties of the contractual relationship,” according to the Ministry of Human Resources and Social Development.

The initiative is in parallel to the Wage Protection System, digitation of workforce contracts, Labor Education and Awareness Initiative, and the launch of “Wedy” for the settlement of labour disputes.

Indeed, improving the work environment is key to attracting skilled labour and developing a strong domestic workforce. With countries fighting for talent and focused on upgrading its workforce, Saudi Arabia’s new labour reforms will go a long way in creating an attractive destination for knowledge workers.

The kingdom has also made huge strides in improving women’s access to the job market. A new report by the World Bank on Women, Business and the Law (WBL), notes that Saudi Arabia took a number of measures recently to improve work environment for women.

The kingdom eliminated all restriction on women’s employment and lifted bans on women working at night, according to the bank, which raised its standing among its global peers.

On a scale of 1 to 100, the kingdom scored 80 points in WBL 2021, up from 70.6 in WBL 2020. The report placed Saudi Arabia in 2020 as the first among GCC countries and second in the Arab world. The kingdom got full 100 points in five of the eight criteria such as: mobility, workplace, pay, entrepreneurship and pensions.

While the kingdom is investing billions of dollars in hard infrastructure, and developing new sectors, the focus on labour market reforms is also going to play a crucial role in the overall success of the economy.
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