Work migration took place in the late 1930’s in Saudi Arabia with the oil exploration that needed the technical expert labours from the West and Arab countries (Qureshi, 2014). The labour market then was mixed of the semi-skilled Saudi labours and foreign labours. The boom in the oil industry took place in 1973 and it created development in economy and infrastructure and it generated vacancies for the skilled and semi-skilled labour force into Saudi Arabia. In this situation, the foreign labours including Arabs and Asians were chosen for performing short-term jobs and the Saudi citizens were making money from trading of the labour visas. The spouses of these foreign labours come with them to Saudi Arabia and in some cases, they are capable to continue their own career. However, the government of the country does not provide permissions for the spouses of the immigrant employees to work separately. If the spouses want to work, then they need to get the special work permit which was not easy to get. However, the recruitment still could not fill the market demands. Shaughnessy, Sprunt & Schneider (2015) added after the Gulf war in the Middle Eastern countries and ideologies of the Muslim monarchies replaced the current labour force by the Asian labours which were comparatively less liable towards the society and politics and it helps Saudi Arabia to create labour unions.
Saudi Arabia became a part of WTO in 2005. Labour planning then took place and it helped to decrease the youth unemployment. It also helped to increase the employment rate for women labour. The Hafizah System was introduced by the king of KSA that helped the young Saudi job-seekers by providing the allowance of SR2000 and also set the minimum wage of SR3000 for the employees of public sector. Nitaqat campaign increased the number of Saudi national people working within the private sector as it includes the job quotas for Saudis. On the other hand, Hodges (2017) opined that the business community opposed this situation, as they think that these Saudi labours are costly and they are hard to suspend and are less skilled. KSA has a plan to introduce National Labour Gateway (TAQAT) program, which will help to train Saudis for jobs. McGuigan (2017) added that the Ministry of Labour and Social Development is focussed in empowering women towards making the economic growth for the country.
Saudi Labour Law with strong Islamic culture is associated with the foreign and domestic labours. Saudi Arabia has the largest labour market in the Gulf Region where the foreign employees occupy more than 20% of the entire population (Hodges, 2017).
The hiring policy is set by the Ministry of Labour that allows the organisations to recruit the foreigner women in 7 business activities such as education, health, childcare, dressmaking, airlines cleaning and in wedding halls and they only get the permission for the part-time jobs which can be done remotely. As the foreign culture has impacts on the Saudi women, so the number of the women employees increases (Sara Khoja, 2016). However, there are some Islam traditional barriers such as women are not allowed to perform any hazardous jobs as per the Ministry of Labour. Women employees must work segregated from the male employees.