Skip to main content

Saudi labor reform opens new opportunities for economy

Recent reforms enacted by the Saudi government aim to crack down on illegal immigrants and curb the use of migrant laborers.
Ethiopian migrants walk on the side of a road during their journey from the Red Sea Yemeni town of Medi to Haradh town on the border with Saudi Arabia March 22, 2012. Some 12,000 migrants, mostly from the Horn of Africa, are stranded in Haradh, which they use as a stepping stone to reach Saudi Arabia, according to the International Organization for Migration (IOM).     REUTERS/Khaled Abdullah (YEMEN - Tags: POLITICS SOCIETY IMMIGRATION) - RTR2ZPE5
Read in 

November 2013 was the deadline given by the Saudi Arabian government for foreign workers in violation of residency or work regulations to correct their status. At that time, a campaign was launched to search for any remaining workers in violation of regulations. During the "correction" period, more than 1 million foreign workers left or were deported, while more than 3 million changed their status.

During the same period — less than a year — more than 250,000 Saudi citizens gained employment in the private sector, while a little more than 700,000 citizens entered the private sector in the past three years. This last figure is close to the total number of Saudis working in the private sector four years ago, before the start of labor-market reform projects initiated by the Ministry of Labor. The end of the deadline, the campaign to search for violators and the continuation of legislation and laws enacted by the Ministry of Labor to reform the structure of the labor market, reduce the flow of cheap foreign workers and push more Saudi citizens to enter the private sector all indicate a radical change in the form of the Saudi economy. This change will not be limited to economic aspects alone, but will extend to affect social and political issues.

Access the Middle East news and analysis you can trust

Join our community of Middle East readers to experience all of Al-Monitor, including 24/7 news, analyses, memos, reports and newsletters.

Subscribe

Only $100 per year.