Saudi Arabia has recently implemented a significant reduction in the hiring costs for domestic workers from several African and Asian countries, including Kenya, Uganda, Ethiopia, the Philippines, Sri Lanka, and Bangladesh. This decision marks a substantial shift in the Kingdom’s approach to foreign labor, particularly from these regions.
The revised hiring fees show a notable decrease, with the cuts varying by country. Notably, the hiring cost for Kenyan workers has been reduced by 17.2%, a considerable reduction. Ethiopia experienced a 14.5% cut, and Ugandan workers saw a 12.6% reduction in hiring costs. These adjustments have led to significant double-digit percentage cuts for all three African countries listed.
As reported in The Gulf News, a Middle Eastern publication, the new hiring costs set by Saudi Arabia’s Ministry of Human Resources and Social Development are as follows: The fee for the Philippines has been reduced from SR15,900 to SR14,700; Sri Lanka from SR15,000 to SR13,800; Bangladesh from SR13,000 to SR11,750; Kenya from SR10,870 to SR9,000; Uganda from SR9,500 to SR8,300; and Ethiopia from SR6,900 to SR5,900.
This initiative is part of the ministry’s broader strategy to monitor and regulate recruitment expenses. The goal is to ensure that hiring costs remain fair and align with the evolving industry standards. This move is seen as a response to the global economic situation and the changing dynamics of the labor market.
In addition to setting new hiring fees, the ministry has directed licensed recruitment companies and offices to establish upper limits for recruiting domestic workers from specific nationalities. This directive aims to create a more regulated and equitable system for the recruitment of foreign domestic workers.
The decision by Saudi Arabia follows significant diplomatic efforts by Kenyan President William Ruto, who has been actively working to address his country’s unemployment challenges. In October 2023, President Ruto secured commitments for 350,000 jobs for Kenyans in Saudi Arabia. He emphasized the positive reputation of Kenyan workers for their strong work ethic and reliability.
President Ruto’s visit to Saudi Arabia was part of a larger strategy to attract multinational companies and create employment opportunities for Kenyans. This approach reflects a growing trend among African nations to explore international labor markets as a solution to domestic unemployment issues.
Kenya’s move to send 1500 of its citizens to work on farms in Israel in December 2023 further underscores this trend. Similarly, Malawi decided to send around 221 of its people to the same region, indicating a broader pattern of African nations leveraging international labor markets.
Chinedu Okafor, a Senior Reporter at Business Insider Africa with five years of experience, highlights the significance of these developments in the African labor market. Okafor’s insights provide a deeper understanding of the economic strategies employed by African nations in response to the global employment landscape.
In conclusion, Saudi Arabia’s decision to slash hiring fees for domestic workers from African countries represents a significant development in the international labor market. This move not only benefits workers from these countries but also aligns with Saudi Arabia’s efforts to regulate and control recruitment expenses. It reflects the changing dynamics of global labor demands and the strategic responses of countries like Kenya and Uganda in addressing domestic unemployment through international employment opportunities.
