Saudi Arabia is changing tack in its labour reforms, softening the blow to companies with money for subsidies and training while trying to lure Saudis to the private sector with more attractive working conditions.
A draft law would limit working hours at companies to entice new employees and adjustments are being made to recent rules. Meanwhile the government is spending billions of riyals to help pay Saudi workers’ salaries, and is setting aside more money to smooth the path of the most sweeping economic reforms in decades.
Authorities launched labour reforms in 2011 after the Arab Spring uprisings to head off political unrest by reducing unemployment. They also want to lower the cost to the economy of Saudis’ dependence on comfortable but expensive state jobs.
