Saudi labor migration legislation is considered one of the toughest in the region. The new reform should somewhat improve the position of guest workers, but not all.
Labor migrants at a construction site in Riyadh
Of the 34 million population of Saudi Arabia, almost a third are labor migrants. At the moment, their legal status is completely controlled by the employer, which makes foreigners vulnerable and allows them to be exploited.
Saudi rules governing the terms of employment of foreign workers – the so-called “kafala” – are considered one of the most stringent in the Gulf countries. However, in early November, the kingdom’s authorities announced major reforms in this area. Riyadh has followed the example of neighboring Qatar, which has also relaxed its immigration laws in recent years.
Main facts about one of the richest and most closed states in the world:
The most expensive company in the world operates in Saudi Arabia
And part of it is going to be privatized at the largest IPO in history. Saudi Arabian Oil Co., or Aramco, is the country’s largest oil company and the most valuable company in the world. Its market value, according to the most conservative estimates, exceeds a trillion dollars. And there can be found Saudi Arabia job vacancy.
This is higher than the current leader among public companies, Apple Inc. (about $ 747 billion). As part of a large-scale privatization plan, Saudi Arabia is preparing to sell a 5% stake in Aramco for at least $ 50 billion next year. It will be the largest initial public offering (IPO) in history. Money for the country will come in very handy – the reserve fund has noticeably lost weight over the years of low oil prices: from 730 billion in 2014, it decreased to 493 billion in April 2017.
Oil was discovered in Saudi Arabia in 1938, and its exports now account for more than 91% of revenues. The development of the fields began with a joint venture with the Americans, California-Arabian Standard Oil, but the kingdom gradually bought out and eventually nationalized the company.
A visa is required to enter the kingdom. But tourist visas don’t exist
Citizens of all countries of the world (except Kuwait, UAE, Bahrain and Oman) need a visa to enter.
But Saudi Arabia does not issue tourist visas, but is going (not for the first time, though). Before issuing them, the most realistic ways of visiting the kingdom for non-Muslims is a transit visa or buying air tickets with a long connection at the country’s airports.
Third part of population is labor migrants
The Saudis are young. About 67% of the total population of the kingdom is under 30 years old, and the median age is 28.3 years (versus 29.6 years in the world).
In total, about 33 million people live in the country, almost a third of them are labor migrants.
Relief for migrants in Saudi Arabia
The new system, which will take effect in March 2021, will change the position of approximately seven million guest workers – including construction workers, IT professionals and retail workers. They will no longer need to ask their employer for permission to leave Saudi Arabia or re-enter the country, which is considered one of the most inhumane elements of current legislation. The reform also provides that after the expiration of the contract and subject to a number of conditions, migrants will be able to change jobs without the consent of the previous employer.
Some of the migrants pin their hopes on the reform. Meanwhile, the reform is primarily based on economic rather than humanitarian considerations. Saudi Arabia intends to diversify its economy, reduce its dependence on oil exports and combat rising unemployment. The kingdom’s authorities hope that the migration reform will lead to increased competition in the labor market, higher wages and, accordingly, will contribute to the gradual ousting of migrants by the local population.
