KSA This Week: Riyadh Air takes off, construction hits a high, labour fines rise
This week from the Kingdom: Riyadh Air takes off, construction awards hit a 2026 high, labour-law fines rise sharply, and tourism Saudisation kicks in. Here is what matters for employers and businesses in Saudi Arabia.
Aviation
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2M+ job applications already received by Riyadh Air |
Riyadh Air, owned by the $1 trillion Public Investment Fund, brought forward its debut London flight after taking delivery of its first Boeing 787-9 Dreamliners earlier than planned. The carrier opened ticket sales for Cairo, Dubai, Jeddah, Madrid and Manchester, with the network planned to reach more than 100 cities by 2030.
The launch is a centrepiece of Vision 2030's push to turn Riyadh into a global aviation hub rivalling Dubai, Doha and Abu Dhabi. PIF predicts the airline will contribute $20 billion to Saudi non-oil GDP and support more than 200,000 jobs globally.
For employers, the scale-up matters: Riyadh Air has already fielded over 2 million job applications and expects to operate 10 aircraft by the end of 2026, signalling sustained demand for aviation, ground-handling, hospitality and corporate-travel services.
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The TASC Take A fast-growing talent and supplier market is opening up. As the fleet scales to 10 aircraft this year, expect sustained demand across aviation, ground handling, hospitality and corporate travel — and the recruitment that comes with it. |
Source: AGBI
Projects & Real Estate
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SR30bn construction contracts awarded in May 2026 |
Saudi Arabia awarded 18 construction contracts totalling more than SR30.03 billion ($7.99 billion) in May 2026 — the highest monthly value of the year, according to the Saudi Contractors Authority. Infrastructure dominated, with 10 projects exceeding SR25 billion, while manufacturing and construction each made up 17 percent.
The single largest award was the Aseer-Jazan Expressway, valued at over SR18 billion, followed by the Sheikh Jaber Al-Ahmad Al-Sabah Road and the Khuzam-Nour Khuzam residential district, both in Riyadh. The Al Rajhi Capital Saudi Construction PMI rose to 51.2 in May, back above the 50-point expansion line.
The Authority expects 20 more projects to be awarded in June 2026, with nearly half in the construction and building sector and most concentrated in the Eastern Province and Riyadh — a clear signal of opportunity for contractors, recruiters and the wider supply chain.
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The TASC Take Contractors, recruiters and suppliers should staff up. With 20 more awards due in June — concentrated in Riyadh and the Eastern Province — the project pipeline points to a busy hiring period. |
Source: Arab News
Ministry & Policy
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SR10,000 new maximum labour-law fine (up from SR1,000) |
Saudi Arabia's Minister of Human Resources and Social Development issued a decision amending the schedule of violations and penalties under the Labour Law, touching 38 articles. The fine for engaging a worker in a profession different from their permit rose to SR3,000-10,000 depending on company size, up from SR300-1,000, while employing a foreign national in a Saudi-only role now carries a SR3,000-10,000 fine.
The reforms also make Qiwa-authenticated employment contracts directly enforceable as executory instruments — no lengthy court process required — and stipulate that only electronically documented contracts are legally recognised. From 6 August 2026, all existing indefinite-term contracts must transition to the new standard contract.
For employers, the message is clear: contract documentation, profession-matching and Saudisation compliance now carry materially higher legal and financial risk, and HR processes should be audited ahead of the August deadline.
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The TASC Take Audit your contracts and profession codes before 6 August. Misclassified permits and undocumented contracts now carry real financial and legal risk — a compliant payroll and contracting partner de-risks this fast. |
Source: Fragomen
Labour & Saudisation
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41 roles tourism professions to be reserved for Saudis by 2028 |
The Ministry of Human Resources and Social Development, with the Ministry of Tourism, published a full list of 41 tourism and hospitality professions to be Saudised in three phases starting 22 April 2026 and running through January 2028. Quotas range from 30 percent to 100 percent depending on the role.
Phase One reserves administrative roles such as receptionist, hotel receptionist and telephone operator at 100 percent for Saudis, with supervisory and specialist roles at 70 percent and operational roles at 50 percent. Chef joins at 30 percent in January 2027, and senior management roles reach 50 percent in January 2028.
Each profession is mapped to a Saudi occupational code, and businesses that miss the deadlines face penalties. With tourism among the Kingdom's fastest-growing sectors, hospitality employers should review workforce plans and recruitment pipelines immediately.
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The TASC Take Hospitality employers need a Saudi-hiring plan now. Reception and front-desk roles localise to 100% first, and missing a phase brings penalties — build the pipeline early rather than scramble at each deadline. |
Source: Gulf News
Investments
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70% Saudi home-ownership target under Vision 2030 |
The Public Investment Fund and the Saudi arm of Egypt's Talaat Moustafa Group (TMG) signed an agreement to study potential mixed-use real estate developments inside PIF-backed projects in the Kingdom, spanning residential, commercial, hospitality and retail, as well as large-scale urban communities.
PIF framed the collaboration as part of its drive to diversify the economy, attract foreign investment and expand private-sector participation, including opening future project phases to additional investors, partners and suppliers. The fund is targeting 70 percent home ownership among Saudi citizens under Vision 2030.
The deal aligns with PIF's new five-year strategy announced in April 2026, which prioritises six sectors including urban development and tourism. For developers, contractors and recruiters, it points to a deeper pipeline of mixed-use and residential work.
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The TASC Take Expect a deeper run of residential and mixed-use projects — and rising demand for the developers, contractors and skilled workforce that deliver them. |
Source: AGBI
Energy & Mining
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$1bn EPC gas contract awarded in the Eastern Province |
Italian contractor Saipem said its Saudi joint venture, Saipem Nasser Saeed Al-Hajri Contracting Company, won a EUR900 million ($1 billion) engineering, procurement and construction contract for a new gas compression plant at Aramco's Uthmaniyah field in the Eastern Province. The plant will extend the field's production life to meet rising domestic energy demand.
It is the first EPC project awarded under Aramco's national EPC champion programme, designed to build local contracting capacity. The award follows two contracts worth $600 million handed to Saipem in December 2025 to expand Aramco's oilfield infrastructure.
Aramco is targeting an 80 percent increase in gas production, to 18 billion standard cubic feet per day by 2030 — meaning sustained demand for engineering, construction and localisation-linked employment in the Kingdom's energy sector.
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The TASC Take Energy and EPC firms in the Eastern Province should plan for localisation-linked hiring as Aramco pushes toward 18 bscfd of gas by 2030. |
Source: AGBI
Investments
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+34.5% year-on-year rise in FDI inflows (GASTAT) |
Saudi Arabia's net foreign direct investment inflows reached SR24.9 billion ($6.64 billion) in the third quarter, a 34.5 percent rise on the same period a year earlier and up 5.2 percent on the previous quarter, according to the General Authority for Statistics (GASTAT). FDI outflows fell sharply, down 65.7 percent year on year.
The figures reflect Vision 2030 reforms opening tourism, renewable energy and technology to foreign investors, alongside Ministry of Investment initiatives. In 2024, inflows had already risen 24 percent to SR119 billion, exceeding the national target.
The Kingdom has now beaten its FDI goals for four consecutive years and is raising annual targets toward SR388 billion by 2030 — a backdrop of expanding foreign capital that supports new projects, partnerships and hiring across non-oil sectors.
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The TASC Take More foreign capital in non-oil sectors means more companies setting up and hiring in the Kingdom — a strong backdrop for workforce expansion and a reason to get hiring infrastructure ready. |
Source: Arab News
Global & KSA
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90 days visa-free travel between Saudi Arabia and Russia |
A mutual visa-exemption agreement between Saudi Arabia and Russia entered into force on 11 May 2026, letting citizens of both countries travel without a visa for stays of up to 90 days within a calendar year. It covers diplomatic, special and ordinary passports — making Russia the first country with which the Kingdom has waived visas for ordinary passport holders.
The exemption applies to tourism, business and family visits, but not to work, study, residency or Hajj, which still require the relevant visa. The deal was signed in Riyadh and timed to the 100-year anniversary of Saudi-Russian diplomatic relations.
For Saudi businesses, the agreement eases short-stay business travel and is expected to lift two-way tourism and commercial exchange, supporting the Kingdom's wider tourism and trade ambitions.
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The TASC Take Easier short-stay business travel supports trade and tourism ties. Note it does not cover work, residency or Hajj — those still need the relevant visa, so plan staff mobility accordingly. |
Source: Zawya
TASC in Saudi Arabia
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