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Middle East Edition
5th February 2025
 
THE HOT STORY
Qatar holds workshops on 2025 Job Nationalisation Plan
The Ministry of Labour in Qatar has initiated consultative workshops focused on the 2025 Job Nationalisation Plan, engaging sectors such as manufacturing, logistics, and healthcare. The initiative aims to enhance partnerships with the private sector and promote national workforce participation. Shaikha Abdulrahman Al Badi, Assistant Undersecretary for Manpower Affairs, said: "Collaboration with the private sector is a cornerstone of the nationalisation strategy," as he highlighted its importance for economic growth and sustainable development. Abdulrahman Mohammed Telfat, Director of the National Manpower Recruitment Department, noted that the Nationalisation Law is transforming private sector employment strategies, supported by incentives like salary subsidies and performance-based rewards for successful companies.
LEGAL
Labour permits' approval for Nepali workers starts
The Embassy of Nepal in Muscat has initiated the legalisation process for Nepali workers in Oman who lack a labour permit from Nepal. This first-ever live enrolment took place from 31 January to 1 February 2025 in Salalah, featuring various activities including labour law awareness and social security fund enrolment. Ambassador Dornath Aryal expressed confidence that this service would "greatly help Nepali workers to avail several benefits." The legalisation process requires workers to create a profile through the FEIMS system and attend the embassy for biometrics. The initiative aims to ensure that Nepali workers can work legally and access essential services, with support from local Nepali organisations and volunteers.
Saudi Arabia tightens wage upload rules
Saudi Arabia's Ministry of Human Resources and Social Development has shortened the wage protection file upload period on the Mudad platform from 60 days to 30 days, effective March 1. The change aims to enhance compliance and ensure timely wage payments, after a study revealed that 91% of establishments already upload files within the new timeframe. The ministry encourages firms to upload wage files punctually and review Payroll Management System details to support labour market stability and protect workers' rights.
TECHNOLOGY
Klarna boss: AI can do our jobs
Sebastian Siemiatkowski, the chief executive of Klarna, says the firm has saved the equivalent of $10m a year by using AI its marketing work, reducing its reliance on human workers, while AI tools had also reduced the time that its in-house lawyers spend generating contracts. Mr Siemiatkowski said: “I am of the opinion that AI can already do all of the jobs that we, as humans, do.” He says AI has allowed Klarna to reduce hiring and the firm’s overall head count has fallen to under 4,000 from about 5,000. He expects the firm's workforce to fall to about 2,000 as a result of its AI adoption.
STRATEGY
NXP plans to cut 1,800 jobs
Dutch semiconductor company NXP has announced potential job cuts of up to 1,800 positions globally due to increased market pressures. The company, which employs over 34,000 people around the world, said that the reductions would not exceed 5% of its workforce. NXP has experienced declining demand for automotive chips, a significant part of its business, and reported a drop in revenue from $13.3bn in 2022 to $12.6bn in 2023. CEO Kurt Sievers described the company's performance as “resilient” despite these challenges. Earlier this year, NXP secured a €1bn loan from the European Investment Bank to support semiconductor innovation.
CORPORATE
Lendo secures $690m boost for SMEs
Lendo, a Saudi Arabian debt crowdfunding platform, has secured a $690m warehouse facility from J.P. Morgan to enhance its support for SMEs in the Kingdom. This will allow Lendo to expand its lending capabilities and introduce new financial products, aligning with Saudi Vision 2030's goal to increase SME lending from 4% in 2018 to 20% by 2030.
INTERNATIONAL
UK finance bosses push back on diversity targets
Financial leaders in the UK are urging the Financial Conduct Authority (FCA) to abandon its proposed diversity targets, citing concerns that such regulations could hinder growth. Nikhil Rathi, the FCA's chief executive, has been approached by several industry heads who argue that diversity, equity, and inclusion (DEI) rules would introduce unnecessary bureaucracy. One City chief remarked: "The majority of the [finance] industry has long been unconvinced by the rationale for this." Critics warn that the FCA's plans could lead to a burdensome reporting regime, with one source stating: "The only certainty of its impact will be to create jobs in HR." As the FCA awaits direction from the Labour government, the debate continues over the balance between promoting diversity and ensuring economic growth. Rachel Reeves, the Chancellor, has been told that the FCA's diversity initiatives could cost the City up to £1bn.
Japan's foreign workforce hits record high
Japan has recorded its largest year-on-year increase in foreign workers, with the total reaching 2.3m in October 2024, an increase of approximately 254,000 from the previous year. This marks the highest jump since records began in 2008, reflecting a threefold rise since 2014. The country, which faces significant labour shortages due to its ageing population, has seen Vietnamese, Chinese, and Filipinos emerge as the top nationalities within its foreign workforce. Many of these workers are employed in manufacturing, hospitality, and retail sectors. Notably, the "technical intern" programme, which is aimed at providing specialised experience to participants from countries like China and Vietnam, accounts for 20.4% of the foreign workforce. However, this programme has faced criticism for being a "backdoor" source of labour and has been associated with allegations of discrimination and abuse.
Korean millennials face mental health crisis
A report by LG Business Research titled "Warning Signs for the Mental Health of Korean Millennials" highlights a significant decline in the mental well-being of Korean millennials compared to older generations and their global counterparts. Only 29% of Korean millennials rated their mental health as "good," starkly lower than the global average of 56%. The report identifies long working hours, rigid promotion systems, and financial instability as key stressors. Notably, 65% of millennials cited "lack of recognition and compensation for their work" as a major source of anxiety. The report warns that worsening mental health is not just a personal issue but poses a significant economic risk. "Mental health issues have a greater impact on workplace productivity than physical illnesses," the report says, emphasising the urgent need for proactive measures to address these challenges.
Kmart pushes to end the ‘10 minute' break for workers
Australian employer Kmart is pushing to eliminate the traditional 10-minute work break, citing a shift in employee preferences. Chris Melton, Kmart's head of supply operations, explained: “The majority of our workforce is representative of a younger demographic who would often prefer to waive their meal break because they already carry water with them during shift.” Also, smoking is no longer prevalent. The proposal supports the Australian Retailers Association's (ARA) application for changes to industry awards, including allowing employees to take their breaks at the end of their shifts. However, unions oppose these changes, warning that they could undermine workers' rights. Critics argue that the ARA's proposals are a “smokescreen” aimed at reducing employee entitlements.
 


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