In collaboration with the Insurance Authority, Saudi Arabia’s Ministry of Human Resources and Social Development has introduced a groundbreaking “Insurance Product” designed to protect expatriate workers in the private sector. This initiative aims to secure workers’ entitlements in the event of company insolvency, offering a financial safety net for expats whose employers may face financial difficulties.
The launch of this product comes as part of the kingdom’s ongoing efforts to improve labor rights and strengthen the protection of its significant expatriate workforce. The “Insurance Product” will cover unpaid wages and other financial obligations owed to expatriate workers, ensuring that they are not vulnerable when companies fail to meet their financial responsibilities.
This initiative aligns with Saudi Arabia’s broader objectives under Vision 2030, which seeks to create a more inclusive and secure labor market while enhancing the country’s reputation as a leading hub for international talent. The Ministry emphasized that this insurance scheme will further bolster investor confidence in the Saudi labor market by providing workers with a reliable safety net.
The introduction of this insurance product is a critical step in protecting expatriates, who form a major part of Saudi Arabia’s private sector workforce. It ensures that their financial rights are upheld even during times of corporate financial instability.