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Middle East Edition
17th April 2025
 
THE HOT STORY
PwC pulls out of risky markets
Other news media pick up on the story - first reported in the Financial Times - that PwC has ceased operations in over a dozen countries deemed too small, risky, or unprofitable, as part of a strategy to avoid a repetition of past scandals. According to the Financial Times, the decision stemmed from "mounting differences with local partners." Local leaders reported losing over a third of their business due to pressure from PwC's global executives to abandon risky clients. The firm has faced significant client losses and layoffs since last year. Additionally, PwC's mainland China unit received a six-month suspension and a $62m fine for audit failures linked to China Evergrande's $78bn fraud. PwC is also working to restore relations with Saudi Arabia after a suspension of activities with the Kingdom's sovereign wealth fund.
WORKPLACE
Communication breakdowns endanger patients
According to a study published in the Annals of Internal Medicine, miscommunication among hospital staff is a significant risk to patient safety, contributing to 25% of incidents. The research, led by Jeremy Howick from the UK's University of Leicester Medical School, revealed that in 10% of cases, miscommunication was the sole cause of patient endangerment. Examples include medication errors and critical medical oversights, such as a patient’s death due to a nurse failing to inform a surgeon about post-operative complications. The study analysed data from 46 previous studies involving over 68,000 patients globally. The team emphasised the need for healthcare professionals to enhance their communication skills.
WORKFORCE
Digital Hajj permit service opens for resident workers in Saudi Arabia
The General Directorate of Passports in Saudi Arabia has initiated the acceptance of electronic applications for Makkah entry permits during the Hajj season. Applications can be submitted via the Ministry of Interior's Absher and Muqeem platforms, streamlining the process and eliminating the need for in-person visits. The Absher Individuals platform allows for permit issuance to various groups, including domestic workers and investors, while the Muqeem portal caters to workers in Makkah-based establishments. Starting April 23, residents must secure permits to enter Makkah, with strict enforcement against those without. The Ministry of Interior said: "Residents without permits will be denied entry and returned to their original location." Additionally, Umrah permit issuance will be suspended from April 29 to June 10.
TRAINING & DEVELOPMENT
AWS and Manara partner to develop cloud talent across MENA
Amazon Web Services (AWS) has partnered with Manara, a social impact technology start-up, to train 2,500 software engineers in cloud skills, investing $3.6m over two years. Iliana Montauk, founder and chief executive of Manara, said: "The Middle East is poised to become the next frontier for technology talent." The initiative aims to enhance the region's tech capabilities, aligning with AWS's recent $5.3bn investment in Saudi Arabia. The training will be delivered via Manara’s education technology platform, providing engineers with AWS Certifications and pathways to employment opportunities. Antonio Alonso Lopez, director of partner management, EMEA, AWS, emphasised the importance of equipping communities with cloud skills to seize opportunities in generative AI.
CORPORATE
Alareeb acquires 80% stake in HR firm Vision Talent
Saudi Arabia's Alareeb Holding has acquired an 80% stake in Vision Talent, a human resources company, marking its second acquisition in less than a month. Nouf Nasser, chief executive of Vision Talent, observed: “This partnership aims to provide advanced HR solutions that enhance the capabilities of companies to achieve sustainable operational efficiency.” Alareeb previously acquired an 80% stake in Future Integrated Management (FIM), further solidifying its strategy to invest in the services sector.
STRATEGY
Lazard establishes financial advisory office in Abu Dhabi
Lazard is expanding its presence in the United Arab Emirates by establishing a financial advisory office in Abu Dhabi, which will serve as its primary hub in the country. Chief executive Peter Orszag described the move as an opportunity to strengthen its engagement in a region of "strategic importance and remarkable opportunity."  Hussain Altajir has been appointed to lead the new office.
TAX
UAE ranks second worldwide in combating tax evasion
The UAE has achieved fifth place globally in tax policy efficiency and second place in combating tax evasion, according to a report from the IMD World Competitiveness Centre. During a Cabinet meeting led by Sheikh Mohammed bin Rashid Al Maktoum, he credited the success to “the tireless efforts of dedicated Emirati teams,” which have registered 520,000 companies under the corporate tax system and 470,000 entities under the VAT system. Sheikh Mohammed emphasised the importance of a robust tax framework for the UAE's economic infrastructure, saying that it is a key indicator of economic strength. He observed: “Over recent years, a new culture of tax awareness and compliance has taken root across sectors.”
INTERNATIONAL
UK Supreme Court rules legal definition of a woman is based on biological sex
The UK Supreme Court has ruled that the legal definition of a woman is based on biological sex. Judges said the "concept of sex is binary" while cautioning that the landmark ruling should not be seen as a victory for one side over the other. Transgender people still have legal protection from discrimination, the court added. Reacting to the ruling, a UK government spokesperson said: "We have always supported the protection of single-sex spaces based on biological sex. This ruling brings clarity and confidence, for women and service providers such as hospitals, refuges, and sports clubs. Single-sex spaces are protected in law and will always be protected by this government."  Chelsea Feeney, an employment associate at law firm Stevens & Bolton, said employers may need to review human resources policies to ensure they accord with the updated definition of woman.
French healthcare workers sue ministers over work-related suicides
French healthcare workers and the families of colleagues who died by suicide have filed a legal complaint against Health Minister Catherine Vautrin and Higher Education Minister Elisabeth Borne, citing "deadly working conditions" in public hospitals. The complaint, lodged with the Republic's Court of Justice, accuses the ministers of allowing "totally illegal and deadly working conditions" that have led to workplace harassment and involuntary manslaughter. It describes a system of “coercion to illegally organise work overtime”, “threats” and “forced labour outside any regulatory framework”, as well as “totalitarian” management practices. Lawyer Christelle Mazza said: "Any boss implementing such mass and repeated restructuring policies . . . would have been sentenced and the company shut down."
Scheme helps Singaporeans who have lost their jobs due to retrenchment
In Singapore, the new SkillsFuture Jobseeker Support scheme offers vital assistance to those who have lost their jobs due to retrenchment or other uncontrollable circumstances. The scheme, announced by Prime Minister Lawrence Wong, provides temporary financial relief, with payouts of up to $6,000 over six months for eligible job seekers. To qualify, individuals must be aged 21 and above, unemployed for at least one month, and have earned $5,000 or less monthly. The scheme encourages proactive job searching through various activities, allowing participants to earn points for financial support. National Trades Union Congress secretary-general Ng Chee Meng said the scheme is a significant first step in providing temporary financial relief to those who are involuntarily unemployed. “We hope this will provide workers with relief, especially in times of increasing uncertainty,” he said.
Man who threw banknotes at employee 'committed assault'
A man in Korea has been fined 500,000 won ($350) for throwing eight 50,000 won bills at a motel employee in Suwon, Gyeonggi, after being denied parking access. The Suwon District Court ruled that the act constituted assault under Korean law, and that it caused both physical and psychological distress. The man claimed he intended to throw the money towards the counter, not at the employee, and argued that paper bills could not inflict harm. However, prosecutors maintained that throwing money at someone’s face amounted to unlawful physical force. The court upheld the fine, rejecting the man's appeal.
 


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