Informal Professions in Saudi Arabia

Informal professions in the Kingdom of Saudi Arabia are professions that are not formally regulated and are not listed within the "Professions List" of the unified Saudi classification of professions.

These professions are practiced without following labor regulations and are thus classified under the shadow economy, which is an old phenomenon present in different societies. Its characteristics include a variety of activities, a broad scope, and differing features. The shadow economy includes all income-generating activities that are not recorded within official statistics of the gross domestic product (GDP).

Informal professions in Saudi social norms

In the social norms of Saudi Arabia, the profession of "al-Kadd" is considered one of the oldest transportation rental professions in Saudi Arabia. Its practitioners are referred to as "kaddadeen", alongside the profession of "al-Sharitiya" and offering charcoal-brewed tea, and there is the matchmaking profession, a female-dominated field where a lady helps individuals find a suitable partner, and the hospitality field includes many informal professions, such as coffee preparer or "qahwaji". In Saudi wedding traditions, there is the profession of the singer who entertains at a wedding, as well as the profession of "al-marhaba" who welcomes guests.

These professions fall under the category of freelance work that serves as a source of income and livelihood but contravene regulations by not obtaining licenses to operate. The labor law issued in 2005 defines work as the effort exerted in any human activities, executed under an employment contract (written or unwritten), regardless of its nature or type, whether industrial, commercial, agricultural, artistic, or other, be it physical or mental.

Integration of informal professions into the labor system

To organize the labor market and address the situation of informal professions, numerous programs have been launched such as the Freelance Programme by the Ministry of Human Resources and Social Development, aimed at enabling national resources and supporting those seeking additional income or those wishing to freelance in their field of specialization independently.

The Freelance Programme was developed by adopting its regulations in 2019, along with the launch of the second phase of the Freelance Portal with new features and services for practitioners of this work pattern, with the aim of encouraging and supporting its practice as one of the unconventional work patterns, following the approval of more than 123 professions for which practitioners can obtain a certificate qualifying them for freelance work in these fields.

Informal professions in Saudi Arabia

There are many informal professions practiced by citizens and residents in Saudi Arabia that violate established labor regulations, including the profession of private tutoring. This service is sought by some parents to assist their children in education, however, Saudi Arabia’s educational administrations have addressed this by developing plans to eliminate private tutoring before exams, as this profession contradicts existing systems and instructions.

Other informal professions include non-Saudis using private vehicles with app-based transportation companies, which led the Transport General Authority (TGA) to urge companies to connect with the "Wassel" platform linking to the National Information Center. Non-Saudis offering transportation with their vehicles is against the regulations of public transport, labor, residency, and traffic, exposing the driver to fines of SAR5000, service suspension, and potential vehicle impoundment.

Professions related to illegal logging and cutting trees, including "firewood seller", are against environmental regulations in Saudi Arabia, and are monitored by the National Center for Vegetation Cover Development and Combating Desertification (NCVC), responsible for enforcing the environmental conservation executive regulation against violators, which mandates fines for environmental regulation breaches. Local police, road security, and environmental police continuously monitor for offenders.

Additionally, unlicensed car washing is seen as an informal profession practiced by non-systematic labor, which is confronted by official bodies and inspection teams through campaigns targeting this environmentally and visually polluting phenomenon, as part of their strategy to eradicate negative phenomena.

Funding to enter the labor market

Government bodies responsible for providing income sources for citizens in Saudi Arabia offer support within an organized framework for entering the labor market, such as the funding provided by the Social Development Bank, which approved funding in the year 1444 AH/2022 AD, exceeding SAR13 billion, benefiting more than 150,000 citizens over a single year. This included more than 63,000 social loans, empowering over 99,000 freelancers and productive families to enter the labor market across various cities in Saudi Arabia with funding totalling SAR4.4 billion.

The Social Development Bank also offers a "cash financing" product to enhance the performance of citizens engaged in freelance work, including those capable of working or wishing to increase their monthly income and possess a craft, expertise, or specialized skill, allowing them to benefit from accessible financing, enabling them to practice freelance work personally.