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Middle East Edition
13th July 2026
 
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THE HOT STORY

Ageism costs economies billions by 2040

A new World Economic Forum and Marsh report highlights that age-related workplace barriers could lead to nearly $500bn in productivity losses for OECD economies by 2040. The report states that the ageing population will grow significantly, while the working-age group will increase only modestly. Countries like the US and France are projected to face substantial GDP losses due to extended unemployment among older workers. The report also links ageism to health issues, noting that tackling it could enhance productivity and provide health benefits, while allowing employers to tap into valuable skills of older workers.
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WORKFORCE

Oman strengthens labour market dialogue

The Ministry of Labour in Oman is enhancing social dialogue among government, employers, and workers to foster a stable labour market. Hussain bin Ali al Lawati, Director-General of the General Directorate of Labour Welfare, stated that the Joint Dialogue Committee Affairs Section is crucial for facilitating communication among these partners. The section provides support for discussions, conducts studies on labour market trends, and prepares reports to assess progress. Al Lawati noted that these efforts align with the Ministry's vision to promote cooperation and support Oman's sustainable development goals.

Punjab's workers soar to Saudi jobs

The Punjab government has launched the Parwaaz Card initiative to support skilled workers seeking employment abroad, particularly in Saudi Arabia. The scheme offers interest-free loans to cover pre-departure expenses, including travel and certification costs. The first group of 135 workers has already begun their journey, with over 90% heading to Saudi Arabia. Adnan Afzal Chattha, chair of the Chief Minister Punjab Task Force on Skills Development, stated: "We plan to send around 45,000 skilled workers abroad in the next three years." The initiative aims to align Punjab's workforce with the evolving demands of the Middle East's job market.
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LEGAL

Qatar unveils new labour law changes

Yousuf Ali Abdulnour, Assistant Director of Qatar's Labour Relations Department, has announced key amendments under Law No. 9 of 2026. These changes include new licensing and training requirements for certain professions, legal recognition of part-time and freelance work, and updated non-compete provisions. Abdulnour said: "The amendment allows employers to require employees to obtain the necessary licences before practising certain professions." The law aims to balance labour market needs with workers' rights, enhancing workforce competency and service quality while providing businesses with greater flexibility.
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REGULATION

HRSD cracks down on rogue recruiters

Saudi Arabia's Ministry of Human Resources and Social Development (HRSD) has suspended five recruitment offices and revoked the licenses of seven others due to regulatory violations. Inspections revealed breaches of recruitment regulations, delays in customer refunds, and unaddressed complaints. The ministry will continue monitoring recruitment entities and enforce penalties for non-compliance. It encourages customers to use the Musaned platform for regulated recruitment services, which allows electronic contracting and complaint tracking. 
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TECHNOLOGY

UN launches initiative to improve trust in AI agents

The United Nations' agency for digital technologies is establishing a focus group comprised ⁠of ​technical, policy and legal experts to improve trust in artificial ‌intelligence agents, amid growing concern about accountability and human oversight over these increasingly autonomous AI systems.  The International Telecommunication Union (ITU) said that while AI agents - systems that act ​independently on behalf of users to carry out ⁠tasks - can improve productivity, they also run ​the risk of impersonating people and taking unauthorised decisions. The group will hold its first meeting in Paris in November and its ​second in Geneva in January.

UAE AI award opens for entries

The UAE Council for Artificial Intelligence and Blockchain has launched the third edition of the UAE AI Award, aimed at promoting excellence in Agentic AI. The initiative aligns with the UAE's vision to integrate Agentic AI into 50% of government sectors, enhancing productivity and sustainability. H.E. Omar Sultan Al Olama, Minister of State for Artificial Intelligence, stated that the award recognises innovative initiatives that transform AI into a partner for measurable impact. The award features five categories, including Excellence in Agentic AI-Powered Services and Best Government-Private Partnership in Agentic AI.
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TRAINING & DEVELOPMENT

Empowering Qatar's youth through training

The Ministry of Labour in Qatar has introduced the Maharat 2026 Summer Training Programme, aimed at Qatari secondary and university students, including children of Qatari women. This initiative supports the Nationalisation Plan for Jobs in the Private Sector, “Empowering Qatar.” The programme offers training in various sectors such as financial services, logistics, and healthcare, enhancing participants' practical skills and career readiness. It aims to align students' abilities with job market demands, fostering informed career planning. The Ministry emphasises partnerships with the private sector to cultivate a skilled national workforce.

Boosting Bahraini talent with MARSA

APM Terminals Bahrain has launched the “MARSA” Internship Programme, aimed at developing Bahraini talent and supporting the Kingdom's workforce goals. Designed for university students and recent graduates, the programme offers practical experience and essential skills for the evolving labour market. Participants will gain insights into the port and logistics sector, enhancing their workplace capabilities. Applications are open to Bahraini nationals aged 18 to 30. Matthew Luckhurst, Managing Director, said: “The MARSA Internship Program is a direct investment in the next generation of leaders.” Rahim Abbas, Head of People Function, noted the programme's commitment to real opportunities for young professionals.
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INTERNATIONAL

China's gig economy absorbs mass layoffs

Reuters reports that China's booming gig economy is masking job market pain in other sectors as the property crisis eliminates construction jobs and manufacturers shed workers through automation and cost-cutting. The China New Employment Forms Research Center, a think tank, estimates the number of people without a permanent full-time contract - those in so-called "flexible employment" - has risen to 320m this year from 280 million in 2025, a number almost as large as the U.S. population and about 44% of China's total labour force. The country's gig economy increasingly hires educated young people and white-collar workers. "The proportion is extremely high," observed Yang Zhan, a cultural anthropology expert at the Hong Kong Polytechnic University. "It's no longer ​limited to rural migrants and has spread to the middle class and university graduates . . . China is upgrading manufacturing, and many industries that used to absorb large numbers of workers are being phased out. ⁠Then there is AI."

European unions demand heat protection laws

As Europe faces extreme heat, unions are advocating for new laws to protect workers from heat stress. They are calling for enforceable workplace thermal limits, based on the wet bulb globe temperature (WBGT), along with mandatory job site heat risk assessments, rights to heat breaks, outdoor shade, water, cooling and adjusted working hours to be included in a forthcoming quality jobs law, in a draft directive text seen by the Guardian. Enrico Somaglia, the general secretary of the European Federation of Food, Agriculture and Tourism Trade Unions (Effat), said: “Climate change is no longer a distant environmental challenge, it is a daily occupational health and safety risk, as well as a threat to job stability. The current European legal framework is clearly not sufficient to defend against it.”

Mental health leave pressures U.S. employers

About two-thirds (67%) of US companies reported an increase in mental health-related leaves of absence and accommodation requests over the past year, according to a survey by employment law specialists Littler Mendelson. Bloomberg reports on how a growing trend of workers using the Family and Medical Leave Act for mental health is prompting a resource strain, as employers hire temporary replacements or redistribute work. The estimated cost of a missed workday is said to be about $340 per day for full-time workers. Jeff Nowak, an employment attorney at Littler, observes: “Leaves have been consistently elevated coming out of Covid. This is a sustained shift, not a temporary disruption.”

UK government expands state threat powers

The UK government now has more power to crack down on groups linked to hostile foreign states after Parliament passed the National Security (State Threats) Act. The law makes it illegal to support or receive payment from such a group and treats any organisation classed as state-linked under the legislation the same as if they were foreign intelligence services. Anyone convicted of doing the bidding of a hostile state-linked actor could be jailed for up to 14 years.
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OTHER

Squirrel causes chaos in Meta office

A squirrel caused a stir at Meta's Bangkok office, creating chaos for about 20 minutes after being delivered in a package. The reason for the squirrel's delivery remains unclear. New York Times journalist Mike Isaac tweeted that the squirrel scratched a janitor who was attempting to capture it, leading to the janitor receiving first aid. Employees reportedly had a "field day" with the incident, with one creating an AI-generated video on squirrel-related office best practices. The squirrel was eventually caught, but its fate is still unknown. Meta has not commented on the event.
 
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