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Middle East Edition
22nd December 2025
 
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THE HOT STORY

Saudi Arabia mandates digital salary payments for domestic workers

Starting January 1, 2026, Saudi Arabia will require employers to pay domestic workers' salaries exclusively through approved channels, according to an announcement from the Ministry of Human Resources and Social Development. The Musaned platform will facilitate these electronic payments, ensuring secure and reliable wage transfers. The policy aims to enhance wage rights for domestic workers and improve transparency in employment contracts. Employers must adhere to the agreed salary terms, with payments made at the end of each Hijri month. Workers can withdraw cash through approved channels if desired.
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TRAINING & DEVELOPMENT

Basrec partners with Lumofy to strengthen workforce

Bahrain Ship Repairing & Engineering Company (BASREC) has partnered with Lumofy, an AI-driven talent development platform, to enhance its workforce capabilities. The agreement aims to identify skill gaps and provide structured competency frameworks and advanced talent assessments. Narjis Haider Almoosawi, Chief Executive (Human Capital & Corporate Services) at BASREC, said: "Partnering with Lumofy represents an important step in our journey to strengthen BASREC’s human capital." The collaboration seeks to improve employee performance and foster a culture of continuous learning, ensuring BASREC's workforce is prepared for future challenges in the maritime industry.
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WORKFORCE

WPS upgrade has been transforming UAE wage payments

In 2026, financial inclusion for low-income workers in the UAE is set to improve significantly, driven by the Wage Protection System (WPS). Currently, over 60% of the workforce earns below Dh5,000 monthly, and many still rely on cash. However, cash dependency has dropped from 84% to 69% in two years. Digital salary payments are becoming more common, with payroll apps evolving into multifunctional tools. Employers are also recognising the importance of financial literacy, linking it to workplace stability.
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LEGAL

Saudi Arabia to launch new foreign property ownership law in 2026

Saudi Arabia will implement a new legal framework for foreign property ownership starting January 2026. Minister of Municipalities and Housing Majed Al-Hogail announced that foreigners can own one residential unit in most cities, excluding Makkah, Madinah, Jeddah, and Riyadh. Non-residents may only own property in designated areas. The updated rules also allow foreign companies to own commercial and industrial properties across the Kingdom. Al-Hogail said: "The new system aims to regulate foreign real estate ownership by setting clear geographic boundaries." A transaction fee of up to 5% will apply to foreign ownership.
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STRATEGY

Hogan Lovells and Cadwalader set to merge in record $3.6bn deal

Hogan Lovells and Cadwalader, Wickersham & Taft are merging to form a new firm, Hogan Lovells Cadwalader, with combined revenues exceeding $3.6bn. The merger will create the world's fifth-largest law firm, employing over 3,000 lawyers. “Clients are increasingly looking for law firms with deep sector expertise and broad global reach to advise on their most complex mandates around the world,” said Hogan Lovells CEO Miguel A. Zaldivar Jr., who will lead the new entity. Partners will vote on the merger in spring, with completion expected by June. Despite potential office overlaps, job losses are not anticipated. 
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TAX

UAE clarifies corporate tax rules

The UAE government has announced amendments to the Law Concerning Corporate and Business Tax. The new decree clarifies how to calculate and settle corporate tax when using incentives and relief balances. It also allows taxpayers to claim payments for unutilised tax credits from these incentives, subject to specific conditions and procedures.
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INTERNATIONAL

Illegally sacked Qantas workers to get millions

More than 1,700 Qantas ground staff who were unlawfully dismissed during the Covid pandemic will share a A$40m payout. The Federal Court found that Qantas acted against the Fair Work Act by replacing staff with outsourced contractors. Justice Michael Lee said: "To deprive someone of work illegally is to deprive a person of an aspect of their human dignity." The airline was ordered to pay $120m in compensation and an additional $90m penalty, of which $50m goes to the Transport Workers' Union. TWU national secretary Michael Kaine described the case as a "David and Goliath" battle. “Illegally outsourced Qantas workers can now finally begin to move on,” he said. “These workers loved their jobs, and this . . . A$40m from the largest-ever penalty on an employer will go a long way towards compensating them for the damage Qantas inflicted on their lives.”

Louvre reopens fully after staff vote to suspend strike

The Louvre reopened on Friday after museum staff voted against continuing their strike over working conditions. Union leaders said staff had voted against another day of stoppages but warned of future industrial action because of "insufficient progress" in talks with management and the culture ministry. 

UPS underpaid holiday season workers, lawsuit alleges

The New York Attorney-General’s office has accused global delivery giant UPS of underpaying its seasonal workers. In a statement, Attorney-General Letitia James’ office said UPS “commits wage theft against these workers in myriad ways . . . [and] has repeatedly and persistently failed to pay seasonal delivery workers for all time worked,” suggesting that thousands of past and present workers have been affected. The filing alleges workers were not being paid for their labour before and after shifts as well as during meal breaks, and that the company's timekeeping “introduced and compounded” errors.

Argentine unions protest against labour reform

Argentina's General Confederation of Labor (CGT) organised a massive demonstration in Buenos Aires on Thursday against a proposed labour reform bill by President Javier Milei. The bill aims to limit the right to strike and alter employee working hours and severance pay. Jorge Sola, a leader of CGT, said: "We don't want fewer rights, we want more work, more dignity."
 
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