The Ministry of Human Resources and Social Development (MHRSD) has found that 80% of recruitment companies and offices are not following the rules and don’t have proper systems in place. This lack of compliance is negatively impacting the Kingdom’s relationships with countries that send workers here, the ministry said.

The ministry made this statement in response to a comment on the draft “Rules for the Practice of Recruitment and the Provision of Labor Services,” recently posted on the Istitlaa public consultation platform. The comment was about the mandatory transformation of small recruitment businesses into formal companies.

The ministry added that it conducted individual interviews with more than 170 recruitment office owners and CEOs to discuss this transition and gather feedback.

After reviewing global best practices and holding workshops with office owners, the ministry asked these small recruitment offices to turn into official companies. And a total of 86 offices have already been established as official recruiters since 2022. The ministry is now reviewing over 200 more requests to convert.

However, many recruitment office owners have opposed the mandatory conversion, saying the high capital requirements and bank guarantees have forced several small businesses to exit the market. They stressed that these offices have played an important role in keeping the market and prices stable. 

In another effort to identify recruitment offices that violated regulations, the ministry penalised 15 offices for breaching recruitment rules during the first quarter of 2025.

The ministry said that five recruitment offices had their licenses revoked, and ten others were suspended for breaking recruitment rules. 

The revoked licenses were due to serious violations, such as not meeting performance standards, failing to follow shelter guidelines, and not fixing issues within the given deadline.

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The suspended offices were also found to have delayed complaint handling, especially refund requests, and also didn’t meet shelter requirements. Additionally, they missed taking corrective actions against the violations within the granted period, leading to a stricter action from the ministry. 

MHRSD has consistently monitored recruitment offices that are legally authorised to hire foreign workers and has guided them on lawful practices. The ministry also supports them through various platforms, such as the Musaned platform, to automate processes and improve the experience for foreign workers.