weighted score 4.1 · nine dimensions
Country Risk Profile
Saudi Arabia
Sourcing risk, regulatory exposure and audit intelligence for Saudi Arabia-origin supply chains.
Forced & child labour
4
Kafala reforms (2021) improved worker mobility but implementation gaps remain. Migrant worker recruitment fee risks documented. Domestic workers partially excluded from reforms.
Worker rights & FOA
5
No independent trade unions permitted. No right to strike. ILO C087 and C098 not ratified. Worker committees exist but with limited mandate.
OHS & audit transparency
3
ARAMCO and SABIC operate to international OHS standards. Outside oil & gas, enforcement less consistent. Heat stress regulations enforced seasonally.
Food & product safety
3
SFDA increasingly aligned with Codex and EU frameworks. Halal certification mandatory. Pharmaceutical regulation improving.
Environmental & regulatory
3
Limited EUDR exposure — Saudi Arabia is not a significant producer of EUDR-regulated commodities. Environmental regulation developing under Saudi Green Initiative.
Governance & anti-corruption
4
TI CPI 52/100. Anti-corruption enforcement has increased but institutional independence remains limited. Regulatory framework modernising under Vision 2030.
Tariff & preferential access
7
No EU FTA in force. GCC-EU FTA negotiations stalled. GCC common external tariff of 5%. MFN rates apply to Saudi exports entering the EU.
Non-tariff barriers
4
Halal certification requirement for food imports. SASO conformity assessment (SABER) required for many product categories. Saudization quotas affect service contracts.
Supply chain traceability
4
Traceability infrastructure developing. Oil & gas supply chains well-documented. Broader manufacturing traceability less mature. SFDA pharmaceutical track-and-trace system operational.
Labour & Social Risk
Labour & Social Risk
- Kafala system
- Saudi Arabia reformed the kafala (sponsorship) system in March 2021, allowing workers to change employers and exit the country without sponsor approval. Implementation has been uneven — domestic workers remain partially excluded, and enforcement gaps persist. The reforms represent meaningful progress but full alignment with ILO standards has not been achieved.
- Trade union rights
- Independent trade unions are not permitted in Saudi Arabia. There is no right to strike. Worker committees exist in companies with 100+ employees but have limited scope. ILO C087 (Freedom of Association) and C098 (Right to Organise) have not been ratified.
- Migrant worker exposure
- Saudi Arabia hosts approximately 13 million migrant workers, primarily from South and Southeast Asia. Sectors with highest migrant worker concentration include construction, domestic work, agriculture, and manufacturing. Recruitment fee charging and passport retention remain documented concerns.
Regulatory & Trade Compliance
Regulatory & Trade Compliance
- Governance & corruption
- Transparency International CPI 2024: 52/100. Anti-corruption enforcement has increased under MBS, including the 2017 Ritz-Carlton detentions. Institutional independence of judiciary and regulatory bodies remains limited.
- EU FTA & tariffs
- No EU-Saudi FTA in force. GCC common external tariff of 5% applies to most imports. Saudi tariff score of 7 reflects the absence of preferential access and the added cost burden for EU-bound goods under MFN rates.
- Food safety
- The Saudi Food and Drug Authority (SFDA) regulates food safety, pharmaceuticals, and medical devices. SFDA standards are increasingly aligned with Codex Alimentarius and EU frameworks. Halal certification is mandatory for food imports and adds a compliance layer.
- OHS standards
- ARAMCO and SABIC operate to internationally benchmarked OHS standards (ISO 45001, OSHA-equivalent). Outside the oil & gas sector, OHS enforcement is less consistent. Heat stress regulations for outdoor workers (June-September work ban during midday hours) are enforced.