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Milestone Move: KSA Launches Labour Courts to Protect Workers and Boost Investment

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In what can be described as a landmark move by Saudi Arabia, the Kingdom has announced this week that it will be opening its doors to labour courts aimed at organising its labour market, protecting its workers, and boosting investment. The labour courts, which are seven in total and will be fully digitalized, were officially launched by Justice Minister Walid Al-Samaani and the Minister of Labour and Social Development Ahmed Al-Rajhi.

As stated on the CIC website, there will be a labour court in each of Saudi Arabia’s major cities: Riyadh, Jeddah, Dammam, Makkah, Madinah, Abha, and Buraidah. The new courts have been created with the aim to reduce the time needed to complete litigation, and they will be also be digitally integrated with all government bodies that are relevant to the areas of law it considers.

Minister Al Samaani

According to Minister Al-Samaani, the establishment of the new labour courts is an important step towards growing Saudi Arabia’s labour market and creating a climate that will attract investments. In addition, the courts will help to boost Saudi Arabia’s classification in international indices, while enhancing investment opportunities in the Kingdom by guaranteeing justice in the business sector. Indeed, the new courts are in line with Vision 2030, Saudi Arabia’s national plan to revitalize its business environment, fuel investment, and accelerate economic development in the Kingdom.

Today, Saudi Arabia has around 13 million workers, 10 million of which are foreign and three million who are Saudi, according to official statistics shared by the Ministry earlier in July. The country is expecting these numbers to increase with the development of mega projects across the Kingdom and the resulting increasing demand for labour. That is why the Ministry believes that establishing new labour courts will prove to be a major step towards not only facilitating projects but also ensuring that workers are part of a well-defined system that protects them.

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