Worker Freedom: Kingdom Gets High Rating in Heritage Index

JEDDAH, 3 April 2007 — Saudi Arabia has been ranked sixth in labor freedom with a 92.9 percent rating among 157 countries in the Economic Freedom Index issued by the Washington-based Heritage Foundation. Deputy Labor Minister Dr. Abdul Wahid Al-Humaid said the report is an affirmation of labor freedom in the country.

According to Al-Jazirah Arabic daily, only eight countries received above 90 percent in the Heritage Index. The United States was placed seventh with 92.1 percent, just below Saudi Arabia, the paper pointed out. The other top countries in the top eight were: Georgia, Singapore, Uganda, Hong Kong, Australia and Thailand.

“This is not at all a surprising report about the labor market situation in Saudi Arabia,” the minister said.

He indicated that in a previous report issued by the World Bank in September 2006 Saudi Arabia had placed 21st out of 175 countries.

“We received these high ratings from international organizations because Saudi labor laws are highly flexible,” Humaid said.

The ratings of the economic freedom index are given on the basis of 10 factors: freedom of work, trade, finance, freedom from government and corruption, monetary freedom, individual and intellectual freedom and banking freedom.

Saudi Arabia is a free economy, which does not put any restrictions on individual business activities or any private sector initiative, the paper said.

The government also does not interfere in economic activities or put restrictions on capital movement.

“The Index grades 157 countries’ economic freedom, and one of the Index’s 10 key components is a labor freedom factor that measures the ability of workers and businesses to interact without restrictions imposed by the government,” an analytical report said.