Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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Nationalization of Procurement Professions

New Order or Decree

Authors: Sara Khoja, Partner, and Sarit Thomas, Knowledge Management Counsel – Clyde & Co

Under Ministerial Decree No. 141612 dated 11-09/1444 AH, private sector companies with three or more employees working in the below procurement professions will need to reach a Saudization rate of 50% by December 24, 2023:

• Purchasing manager
• Purchasing representative
• Contracts manager
• Private trademark supply specialist
• Bidding specialist
• Procurement specialist

Nationalization of Postal and Freight Activities

New Regulation or Official Guidance

Authors: Sara Khoja, Partner, and Sarit Thomas, Knowledge Management Counsel – Clyde & Co

The following postal and freight activities are subject to a Saudization requirement of 100% by October 26, 2023:

• Freight brokers
• Freight forwarders (freight brokers by sea)
• Packing and unloading
• Loading and unloading of air cargos
• Freight handling activities
• Transport and marine freight agencies
• Accredited air freight agencies
• Shipping and distributing goods services
• Air freight consolidation agencies
• Air freight handling of goods and parcel services
• Cargo handling activities
• Receiving and unloading goods and products from conveyors, describing them and arranging them on the shelves
• Loading and unloading of cargo and passenger baggage, regardless of the mode of transport
• Air transportation of goods

The following professions are exempt from the above requirement provided that the percentage of these professions does not exceed 20% of total workers in one shift at a time: professions in loading and unloading, packaging, and wrapping, shelving, product sorting, wheelbarrowing, storing and facility cleaning.

New Special Economic Zones

Important Action by Regulatory Agency

Authors: Sara Khoja, Partner, and Sarit Thomas, Knowledge Management Counsel – Clyde & Co.

Four new Special Economic Zones (SEZ) have been established in the Kingdom which will offer incentives for companies seeking to expand their business to strategic locations within the Kingdom, including Riyadh, Jazan, Ras Al-Khair, and Makkah. The new zones will be regulated by the Economic Cities and Special Zones authority.

It has been announced that an integrated government services platform will be established, which will streamline and simplify the processes related to the issuance of business licenses and employment of workers, including the introduction of standardized employment contracts, exemption from expat levy fees, and the ability to transfer workers across different companies within a SEZ. Saudization requirements are likely to continue within the SEZ, but relaxation on corporate tax rates, and customs duties on imports and production is expected.

Qiwa Employee Transfer Services Restricted

Important Action by Regulatory Agency

Authors: Sara Khoja, Partner, and Sarit Thomas, Knowledge Management Counsel – Clyde & Co.

Qiwa platform will stop the transfer of employees between establishments in instances where the establishment has reached the maximum permissible limit of professions of employees who are not related to the establishment’s licensed activity. The platform demands that establishments obtain employees with the relevant profession in line with the establishment’s licensed activity.