Saudi Arabia showcases labor market reforms at a UN forum as part of its Vision 2030
The Kingdom of Saudi Arabia actively participated in the Second International Migration Review Forum at the United Nations headquarters in New York, where the Kingdom’s Permanent Representative to the United Nations, Ambassador Abdulaziz Al-Wasil, reviewed the great progress made by the Kingdom in the field of labor market reforms and governance of migrant labor migration, as an integral part of the Kingdom’s Vision 2030 objectives.
Vision 2030: The Engine of Labor Reforms
These reforms come within the framework of the comprehensive National Transformation Plan, “Vision 2030,” which aims to diversify the Saudi economy, reduce its dependence on oil, and build a prosperous economy and a vibrant society. To achieve these goals, it was essential to develop a more attractive and globally competitive work environment, ensuring the attraction of top talent from around the world, while protecting the rights of all employees, whether citizens or residents.
Key initiatives for developing the labor market
During the forum, Ambassador Al-Wasel highlighted a number of landmark initiatives launched by the Kingdom, most notably the “Contractual Relationship Improvement Initiative,” which replaced the traditional sponsorship system. This initiative grants migrant workers fundamental rights, such as the freedom to change jobs upon contract expiration without requiring employer approval, the freedom to leave and re-enter the country, and the freedom to leave the Kingdom permanently, thus enhancing market flexibility and efficiency. He noted that these efforts were reflected in the Kingdom’s submission of its first Voluntary National Review on the implementation of the Global Compact for Migration, underscoring its commitment to international standards.
The economic and social impact of the reforms
Al-Wasel emphasized that effective management of legal migration represents a genuine opportunity and a fundamental driver of growth and development. Expatriate workers in the Kingdom play a pivotal role in the economy, not only through their direct contribution to the labor market but also through the remittances they send to their home countries. These remittances, amounting to tens of billions of dollars annually, are a vital lifeline for the economies of many nations, contributing to sustainable development and improving the living standards of millions of families worldwide. These reforms not only serve the Saudi economy but also strengthen international partnerships and achieve mutual benefits between the Kingdom and labor-exporting countries.
International partnership for achieving sustainable development
The Permanent Representative stressed that achieving optimal migration management requires a strong and effective international partnership based on respect for the sovereignty of states and their national priorities. He explained that the Kingdom's efforts aim to create a leading model in the region for labor market management, in line with the UN Sustainable Development Goals, and to enhance the Kingdom's position as a globally attractive destination for work and investment.
