The Gulf region’s economic transformation has attracted millions of skilled and unskilled expatriates, creating one of the most dynamic and diverse labor markets in the world.
For companies navigating business setup in the UAE or Saudi Arabia, occupational health and safety (OHS) compliance is not just a legal requirement, it’s a cornerstone of sustainable business operations.
Both the UAE and Saudi Arabia have introduced robust labor frameworks to safeguard workers, reflecting a growing alignment with international best practices.
For investors and employers, understanding these obligations is essential to ensuring compliance and maintaining credibility in a region increasingly focused on worker welfare.
- The Legal Backbone of Workplace Safety
1. UAE:
Federal Decree–Law No. 33 of 2021 governs labor relations in the private sector, setting the baseline for OHS compliance. Employers must provide protective equipment, conduct regular safety assessments, and ensure training for high-risk occupations. Administrative Decision No. 19 of 2023 expanded these requirements, detailing accommodation and health standards for employees.
2. Saudi Arabia:
Recent amendments to the Saudi Labor Law (2025) have introduced graded penalties and reinforced employer responsibilities. Businesses are classified into categories based on workforce size, ensuring that larger companies uphold stricter OHS programs.
- Employer Obligations and Worker Rights
Employers in both countries are legally bound to provide a safe working environment. This includes:
Supplying personal protective equipment (PPE) at no cost
Conducting regular risk assessments and safety training
Maintaining records of workplace injuries and preventive measures
In the UAE, companies with more than 50 employees must appoint trained OHS officers and maintain digital logs of incidents. Saudi Arabia mandates industrial and construction firms with more than 100 employees to employ certified safety specialists to oversee hazard prevention and wellness initiatives.
For expatriates operating in heavy industries, such as construction and logistics, or planning for business setup in the KSA in these sectors, compliance with these rules is an operational priority that ensures productivity, and legal protection.
- Managing Heat and Environmental Hazards
Extreme temperatures are among the region’s greatest occupational challenges.
In the UAE, the 2025 Heat Stress Prevention Policy enforces a midday work ban between 12:30 p.m. and 3:00 p.m. during summer months, achieving a 99 percent compliance rate. Employers must also provide shaded rest areas, hydration stations, and cooling equipment.
Similarly, Saudi Arabia enforces seasonal restrictions on outdoor work from June 15 to September 15 between 12:00 p.m. and 3:00 p.m., with fines ranging from SAR 1,500 to SAR 5,000 for violations.
For investors operating in construction or logistics in the UAE or KSA, understanding these heat-related restrictions is crucial when planning shifts, deliveries, or deadlines.
- Accommodation, Insurance, and Worker Welfare
Employee welfare extends beyond the workplace. The UAE mandates employers with over 50 workers earning less than AED 1,500 monthly to provide compliant housing facilities with ventilation and prayer areas.
Health insurance is also mandatory in major emirates like Dubai and Abu Dhabi, where employers must offer full coverage to all employees. This aligns with global standards and strengthens the country’s reputation as a safe and progressive labor destination.
Saudi Arabia has similarly improved its housing and insurance requirements under its Vision 2030 reforms, ensuring that foreign and local workers alike benefit from improved living conditions and access to healthcare.
- Integrating Technology and Global Standards
Both countries are investing heavily in digital safety ecosystems. AI and Internet of Things (IoT) systems are increasingly used to monitor construction sites, detect hazards, and predict incidents before they occur.
Compliance with ISO 45001:2018, the international occupational safety management standard, is becoming a benchmark for leading companies across the Gulf. The UAE and Saudi Arabia are encouraging firms to adopt these systems, particularly in high-risk sectors like energy, aviation, and logistics.
For investors seeking business setup services in Saudi Arabia or the UAE, integrating technology driven OHS solutions builds trust with partners, clients, and government authorities.
- Why OHS Matters for Gulf Investors?
Strong occupational safety frameworks are now a competitive advantage in the region. Multinational corporations and SMEs entering the market in the UAE or the KSA benefit from aligning their operations with these standards.
It enhances brand reputation, minimizes downtime, and ensures compliance with evolving national and international norms. Moreover, it aligns with ESG (Environmental, Social, and Governance) expectations, an increasingly critical factor for investors and lenders evaluating Gulf-based ventures.
- Compliant with Safety
The UAE and Saudi Arabia are reshaping the regional narrative on worker welfare and industrial safety. Businesses that embed occupational health and safety into their operations will be better positioned for long-term success.
As the Gulf economies diversify and global investors look eastward, OHS compliance is not just a regulatory formality; it’s a strategic investment in people, productivity, and performance.