KSA This Week: Enforceable wage contracts from 6 August, $5.3bn into private markets, No.1 in global ICT
This week from the Kingdom: Saudi Arabia's enforceable wage-contract rules reach all employees from 6 August, international investors poured $5.3 billion into private markets, the CMA opened applications for a first commodity exchange, card spending held above $3.3 billion, Saudi Arabia kept the world's No.1 ICT ranking, and Saudi-France trade reached $12 billion. Here is what matters for employers and businesses in Saudi Arabia.
Labour & Saudisation
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Saudi Arabia is completing a major overhaul of employment contracts that makes documented wage terms directly enforceable. The Ministry of Human Resources and Social Development's Qiwa platform has been integrated with the Ministry of Justice's Najiz enforcement system, so wage clauses in a Qiwa-documented contract can be enforced directly before the enforcement courts.
The rollout runs in three phases: new contracts from 6 October 2025, fixed-term contracts on renewal from 6 March 2026, and all indefinite or open-ended contracts from 6 August 2026. Contracts must now set out a detailed wage breakdown, including GOSI social-security deductions, the resulting net wage, and the monthly pay date.
If an employer fails to pay, an employee can file an enforcement request through Najiz — within 30 days for full non-payment, or 90 days for partial non-payment.
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Source: Pinsent Masons
Investments
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Foreign private-capital investment in Saudi Arabia's private markets reached SR20 billion ($5.3 billion) in 2025, about 60 percent of the Kingdom's total private-capital investment, according to a Saudi Venture Capital Co. (SVC) report on global investment in Saudi private markets.
The foreign investor base has grown more than fivefold, from 28 investors in 2019 to 148 in 2025, spanning North America, Europe and Southeast Asia, with more than SR40 billion of foreign private capital invested since 2019. Venture capital remains the main gateway — Saudi Arabia is the largest VC market in the MENA region for a third straight year — while private equity and private debt deepen.
SVC credited macroeconomic stability, regulatory modernisation and government-backed catalytic capital, with foreign interest broadening from fintech and e-commerce into healthcare, enterprise software and logistics.
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Source: Arab News
Finance & Capital Markets
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Saudi Arabia's Capital Market Authority (CMA) has opened applications for authorisation to run commodity-exchange activities, a 123-day window that began on 1 July and closes on 31 October. The CMA intends to grant one licence to operate a commodity exchange in the Kingdom during this period.
The focus will be on secondary-market trading in commodity and metals derivatives contracts, aimed at widening the range of financial instruments, boosting market attractiveness and strengthening Saudi Arabia's position in global capital markets. The move follows the revised Capital Market Law and the Securities Exchanges and Depository Centers Regulations.
It is the latest step in a fast-modernising capital market that has also opened to foreign investors and eased rules for securities activities.
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Source: Arab News
Economy & Trade
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Saudi point-of-sale (POS) transactions rose 1.9 percent week on week to SR12.60 billion ($3.36 billion) in the week ending 27 June, according to Saudi Central Bank (SAMA) data, staying above $3 billion despite a 1.1 percent dip in transaction volume to 224.3 million.
Food and beverage led at SR1.97 billion (up 2 percent), with restaurants and cafes at SR1.57 billion, followed by clothing at SR1.02 billion and transport at SR950.6 million. Riyadh recorded the highest spend at SR4.49 billion, ahead of Jeddah at SR1.75 billion.
The steady growth reflects sustained consumer confidence and the Kingdom's continued shift toward digital payments and a cashless economy under Vision 2030.
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Source: Arab News
Technology
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Saudi Arabia retained the top global ranking in the International Telecommunication Union's 2026 ICT Development Index with a score of 99.8 out of 100, leading 159 economies for a second consecutive year. It scored full marks for universal connectivity and 99.6 for meaningful connectivity.
The Kingdom led the GCC, ahead of the UAE (98.8), Qatar and Kuwait (98.4). Its telecommunications and technology market reached SR199 billion ($53.1 billion) by the end of 2025, growing at an 8 percent compound annual rate over five years — the largest and fastest-growing in the MENA region. Internet usage hit 100 percent and median mobile speed reached 216 Mbps.
The Communications, Space and Technology Commission linked the result to sustained investment in digital infrastructure, cloud, AI and public-private partnerships under Vision 2030.
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Source: Arab News
Tourism
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Artificial intelligence is becoming embedded across Saudi Arabia's fast-growing tourism sector, from itinerary planning to bookings and personalised recommendations, industry leaders told Arab News.
Muzzamil Ahussain, CEO of leading travel brand Almosafer, said AI now works out traveller intent — who is going, with whom, for what purpose and budget — and that its models have lifted conversion rates by 22 percent, shifting the sector from a 'click economy' to a 'conversation economy.' Almosafer's platform runs on more than 250 million lines of code handling about 10 billion requests a month, with roughly half its code AI co-authored. It is working with the Saudi Tourism Authority to surface emerging destinations such as Abha, Tabuk, the Red Sea and Qiddiya.
IBM's Saudi VP Ayman Al-Rashed said trust and data governance will be decisive as AI spreads across airlines, airports, hotels and travel platforms.
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Source: Arab News
Global & Partnerships
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Saudi-France bilateral trade rose 7.8 percent year on year to $12 billion in 2025, the secretary-general of the Federation of Saudi Chambers, Sultan Al-Musallam, said at the Vision Golfe forum in Paris. French investment in the Kingdom has nearly tripled, from SR7 billion to SR19 billion ($5.06 billion).
Around 500 French companies now operate in Saudi Arabia, 30 of them with regional headquarters in Riyadh, across sectors from MICE and culture to tourism and the creative economy. Al-Musallam pointed to hotel group Accor, active in the Kingdom and 'actively recruiting Saudi talent,' as a model others could follow, with Expo 2030 and the FIFA World Cup set to open further opportunities.
The Kingdom's private sector, now 52 percent of GDP, is targeted to reach 65 percent by 2030 under the Federation's 2026-2030 strategy.
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Source: Arab News
Projects & Real Estate
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Saudi hospitality developer Amsa Hospitality has signed agreements with Radisson Hotel Group and Accor to create almost 400 hospitality units across Riyadh and Qassim, announced at the Future Hospitality Summit in Riyadh.
The SR400 million ($106.5 million) Radisson project in Riyadh will deliver 240 villas and apartments and is due to open by the end of 2026; CEO Muin Serhan said the exclusive asset will require a workforce of about 170 Saudi talents across its facilities, with returns expected to exceed SR1 billion. Accor's Palm Qassim hotel, part of the Handwritten Collection, will add 142 rooms near Buraidah's airport, also opening by year-end.
The deals add to a fast-scaling hospitality pipeline as the Kingdom pushes toward its Vision 2030 goal of over 150 million annual visitors.
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Source: Arab News
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