2014: GCC employment in the year ahead

Analysis

2013 witnessed continued legislative developments in the labour and employment field with a strong emphasis across the GCC on eliminating illegal working, promoting the employment of nationals and regulating the provision of employee benefits such as health insurance. These trends are set to continue into 2014 and we examine below the key developments expected to take place in the coming months.

Kingdom of Saudi Arabia (KSA)

The aim of recent labour reform (starting with the introduction of the Nitaqat system in August 2011) is to ensure an integrated labour market where the gap between employing in the private sector and the public sector (certainly for KSA nationals) is closed. In return for opening up its markets, KSA is requiring foreign businesses (as well as Saudi employers) to invest in Saudi nationals and promote local employment. With 75% of the population being under 25 years of age, the imperative to create jobs and maintain job security for future generations is paramount.

Unlawful working