SAUDI ECONOMY
King Salman approves US$3.1 billion plan to ease expat fee costs
King Salman has approved plans to allocate SAR 11.5 billion (US$3.1 billion) as reimbursement to those companies that have paid the 2018 expat levies. An estimated 350,000 companies are expected to benefit from the decision, with the aid requiring businesses to have increased their number of Saudi employees.
Bloomberg – 9 February 2019
Saudi finance minister predicts GDP growth in 2019
The Minister of Finance recently predicted a 2.6 per cent GDP growth in 2019. The IMF, however, has lowered the growth forecast for the Kingdom to 1.8 per cent from the previous 2.4 per cent predicted in October 2018. The IMF has highlighted trade risk factors including Brexit and the US-China trade war. For 2020, the IMF has raised its prediction for Saudi growth by 0.2 per cent in January to 2.1 per cent.
Bloomberg – 25 January 2019
Arab News – 22 January 2019
Tightening relationships between Saudi Arabia and India
On his recent visit to New Delhi, Crown Prince Mohammed bin Salman expressed his expectation of more than US$100 billion in investment opportunities over the next two years. These investments will cover a wide range of sectors including energy, petrochemicals, infrastructure, agriculture, manufacturing and others, with the Kingdom aiming to expand its non-oil trade with India.
The visit has also included talks over an Indo-Saudi cooperation in combatting terror, with the Prince's visit taking place during the mourning of the 40 security personnel killed in the terrorist attack at Pulwama.
Arab News – 20 February 2019
GENERAL LEGAL DEVELOPMENTS
New Implementing Regulations of the Labour Law issued
New Implementing Regulations of the Labour Law (IRs) have been issued by Minister of Labour resolution 70273 dated 11/04/1440H (corresponding to 18/12/2018) abrogating the IRs of 1437H.
The most prominent amendments to the IRs include requiring employers to have at least 75 per cent of their total workforce be comprised of Saudi nationals. However, the limit can be lowered given the absence of required technical competency or qualified personnel.
We will be offering a comprehensive review of the IRs and any amendments in an upcoming Insight.
Expatriate fees for 2019
The updated fees for expatriate residents in the Kingdom have been released, with the residency permit (Iqama) issuance and renewal fees given as follows:
- issuance of a residency permit for domestic workers – SAR 600;
- renewal of a residency permit for domestic workers/house drivers – SAR 650;
- issuance and renewal of residency permits for private sector employees – SAR 650.
Saudi Expatriate News – 3 March 2019
New Competition Law approved by the Council of Ministers
A new Competition Law has been approved by the Council of Ministers in its session falling on 28/06/1440H (corresponding to 05/03/2019G). Accordingly, the General Authority for Competition (GAC) has published a brief leaflet highlighting the primary differences between the old and new iterations of the law.
The most notable amendments to the law include relaxing the implementation of articles regulating the following activities, based upon the notion that such activities lead to an improvement in the performance of the market or that the benefits to the consumer outweigh the detriment to competition:
- agreements between competing firms;
- abuse of a dominant position;
- informing the GAC of any action resulting in an economic concertation (defined as 40 per cent market share in the old implementing regulations of the law).
The exact details of these provisions remain unclear. However, it appears that GAC is moving towards a more liberalised policy with regards to market regulation.
gac.gov.sa – 5 March 2019
Block visas now valid for two years after 2017
Block visas, the Ministry of Labour and Social Development (MLSD) quotas allowing sponsorship of foreign workers, are now being issued for two-year durations for private sector employers. This decision repeals the policy of 2017 limiting the amount of time afforded to employers to hire a foreign employee to one year after issuance of the visa.
Palladium Mobility Group – 27 January 2019
Online registration process for employment contracts
The MLSD has issued a draft Decision compelling all private employers to upload their employment contracts to the General Organisation for Social Insurance (GOSI) website. The law is expected to come into effect soon and will require employers to complete the uploading process before 2020.
Lexis Middle East – 9 March 2019
General Entertainment Authority announces live music permits
The new CEO of the General Entertainment Authority has announced new initiatives aimed at establishing Saudi Arabia as an international entertainment destination. This has included long-term contracts with both local and international partners to offer theatrical events, comedy shows and live music events.
Arab News – 22 January 2019
New terror financing law comes into effect
A new anti-terrorism law has been published in the Saudi Gazette, cracking down on 12 forms of financial activity used to fund terrorist groups. The law targets entities that aim to fund terrorist networks under the guise of operating as lending organisations, charities or private banks. Further, a witness protection programme has been established to provide those involved with combatting terrorism and their families with relocation services.
The National – 29 January 2019
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