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RIYADH: Saudi Arabia, a country which has been dependent on its rich oil reserves for several decades, is now on a path of economic diversification. With Vision 2030, Saudi Arabia’s Crown Prince Mohammed bin Salman is proving that the Kingdom could perform well in non-oil private sectors too.
As Saudi Arabia’s private sector expands rapidly, the Kingdom is expected to provide more job opportunities to nationals and foreign talents alike in the coming years.
Giga-projects like NEOM are presenting enormous job opportunities in the construction sector, along with offering employment in various other areas including advanced technologies like artificial intelligence.
Spotlight on construction sector
According to Grace Najjar, Project Management Institute’s regional managing director for the Middle East and North Africa region, the construction industry is expected to play a crucial role in achieving the goals set forth by Vision 2030, providing immense job opportunities in the future.
She further noted that Saudi Arabia’s construction sector will witness high demand for skilled professionals which include project managers, engineers and architects.
“Over 5,200 projects across Saudi Arabia, with a combined worth of $819 billion, are currently underway, representing 35 percent of all active GCC (Gulf Cooperation Council) project values. With such a vast number of projects, there will be a significant demand for skilled professionals in the construction industry, including project managers, engineers, architects and skilled labor,” said Najjar.
She added: “This demand is expected to continue to rise in the coming years, especially as Saudi Arabia and the entire GCC are on a path of economic diversification.”
Earlier in May, a report released by the US-Saudi Business Council noted that the Kingdom’s construction sector saw the value of awarded contracts increasing to $51.3 billion in 2022 — a 35 percent rise compared to the previous year.
“The surge in contract awards continues unabated on the back of a growing economy that was fueled by significant oil revenues and the acceleration of giga-projects following the COVID-19 slowdown,” said Albara’a Alwazir, director of economic research at the USSBC.
Najjar further pointed out that local talent in Saudi Arabia will get ample chance to explore employment opportunities in the construction sector.
“In recent years, there has been a push to develop local talent in Saudi Arabia, including in the construction sector. The government has implemented several initiatives to develop skills and create employment opportunities for Saudis, including the National Transformation Program,” added Najjar.
Advanced technologies in focus
The growth of the construction sector in Saudi Arabia is expected to simultaneously increase job opportunities in advanced technologies like artificial intelligence, especially considering the fact that building firms are making use of AI to elevate efficiency and safety.
“AI-powered construction is taking the industry by storm, and it has the potential to improve productivity, safety and quality in construction projects. AI can be used to streamline project management, including scheduling, resource allocation and risk management,” said Najjar.
According to the latest Future of Jobs report by the World Economic Forum, the fastest-growing roles in Saudi Arabia will be driven by technology and digitization in the Kingdom. The report noted that Saudi Arabia will witness a sharp rise in demand for AI and machine learning specialists, as almost all businesses are currently undergoing a digital transformation.
Over 5,200 projects across Saudi Arabia, with a combined worth of $819 billion, are currently underway, representing 35 percent of all active GCC project values.
Grace Najjar, Project Management Institute’s regional managing director for the Middle East and North Africa region
Ranim Al-Amin, head of government strategic partnerships in Saudi Arabia at LinkedIn, also shared similar views and noted that the employment-focused social media platform has witnessed a massive uptick in AI-related jobs in the region.
“It is exciting to think of the transformation that new technologies like AI will bring to the region. We’ve already witnessed this change accelerate on LinkedIn since November, with AI starting to upend work everywhere for everyone all at once. It’s only been a few months, but we’ve seen the number of jobs on LinkedIn mentioning GPT for example increase by 51 percent from 2021 to 2022,” said Al-Amin.
She added: “We also saw the usage of keywords such as ChatGPT, Prompt Engineering, Prompt Crafting, Generative AI, and Generative Artificial Intelligence on profiles globally increase 71 percent from February to March 2023 — a massive jump in just one month.”
Rise in hybrid mode of work
It was during the pandemic outbreak that several companies gave employees a provision to work from home. However, even as the pandemic waned, many companies and employees all over the world still prefer a hybrid mode of work and the Kingdom is no different.
“Our recent data shows that ‘software engineer’ came in sixth place among the top jobs in the Kingdom in 2022, with 45.7 percent of those openings offering a hybrid option; the highest percentage among the top 10 jobs,” said Al-Amin.
It is exciting to think of the transformation that new technologies like AI will bring to the region. We’ve already witnessed this change accelerate on LinkedIn.
Ranim Al-Amin, Head of government strategic partnerships in Saudi Arabia at LinkedIn
She added: “It is also worth noting that 10.3 percent of all entry-level jobs allowed a remote or hybrid format, witnessing a 5.7 percent increase from last year whereas senior-level jobs remained unchanged from last year with only 8.9 percent offering remote work.”
Meanwhile, Saudi Arabia, in line with the targets outlined in Vision 2030, is making great strides in reducing the unemployment rate.
According to the General Authority for Statistics’ labor force survey, the unemployment rate fell to 8 percent in the fourth quarter of 2022, from 9.9 percent in the previous three months.
Hardly surprising then that the Kingdom has set itself a target unemployment rate of 7 percent by 2030.
DUBAI: The UAE ranked seventh in the world in terms of per capita national income, according to the latest World Bank data.
The UAE’s per capita income increased by $10,781 from 2021 to $87,729 in July 2022, based on purchasing power parity in current international dollars.
The international dollar is a virtual currency that is used for evaluating the purchasing power of various countries.
It is based on the US dollar, but it has the same purchasing power as each country’s local currency.
According to the World Bank, the UAE has maintained its place among the list of countries with the highest per capita income based on the Atlas method while also using current US dollar prices.
Using the Atlas method, the World Bank breaks down the world’s economies into four income groups: low, lower middle, upper middle and high.
The categorizations are revised annually depending on the previous fiscal year’s per capita income.
The UAE’s per capita national income in current US dollars rose to $48,950 in 2022 from $43,460 in 2021, surpassing the pre-COVID-19 level of $46,210.
The Atlas method, which was developed in its current form in 1989, is used to express gross national income in US dollars.
RIYADH: The Saudi Ministry of Industry and Mineral Resources has begun evaluating the second tranche of factories as part of its “Future Factories Program” under the indicators of the Smart Industry Readiness Index.
The initiative seeks to establish a strong technological ecosystem and transform the manufacturing sector in alignment with modern practices and principles and is a key tenet of the Vision 2030 initiative to diversify the Kingdom’s economy.
With an emphasis on improving the Saudi industrial sector, the program will evaluate 260 licensed factories operating at different levels of technical development. Each factory will hold an authorized capital of over SR200 million ($53.3 million).
The ministry stated that this stage will concentrate on verifying the self-evaluation results of factories that have achieved a rate of 2.14 on the SIRI. The factories will be divided into two groups: advanced factories, which have surpassed a score of 2 on the audited evaluation of SIRI standards, and factories that require modern manufacturing practices.
According to the ministry, the audited SIRI evaluation can contribute to raising the leadership and factory teams’ awareness of the importance of adapting modern manufacturing practices.
The ministry also emphasized that the move can contribute to setting priorities for the transformation of the factories and developing a plan to achieve the second SIRI level or higher. Such advancements can lead to increased returns, profits, and cost reduction.
Meanwhile, the ministry indicated that factories that did not surpass the specified stage in the audited assessment would be eligible to receive incentives. These aim to support the factories, enabling them to formulate plans to improve performance in the audited assessment and adopt Fourth Industrial Revolution technologies.
The ministry stated that the program encompasses two main streams. The first stream will focus on designing and constructing new factories that adhere to high manufacturing and production efficiency standards. The second stream will target existing factories to transform them into facilities that embrace exceptional operational standards and leverage advanced technologies.
RIYADH: There is no room for negotiations with Iran over the Al-Durra gas field until it demarcates its own maritime borders in accordance with international laws, according to the Kuwait oil minister.
Saad Al-Barrak made the comments as tensions over the resource-rich “Divided Area” increased following Tehran’s announcement of plans to commence drilling in the region.
Iran’s claims over access to the gas field are not based on a “clear demarcation” of the maritime borders, according to Al-Barrak.
“Until this moment, this is an exclusive right of Kuwait and Saudi Arabia in the Al-Durra field, and whoever has a claim must start demarcating the borders,” the minister said in an interview with Al-Ekhbariya.
He added: “And if it has a right, it will take it according to the rules of international law.”
The minister insisted Kuwait and Saudi Arabia are “one team” when it comes to the gas field, which will be developed “for the benefit of both countries.”
Last week, Saudi Minister of Foreign Affairs Faisal bin Farhan reaffirmed the joint ownership, calling on Iran to engage in negotiations to demarcate the eastern border of the area.
In a statement released by the Saudi Press Agency on Tuesday, a Foreign Ministry source emphasized the natural resources in the “Divided Area” are solely owned by Saudi Arabia and Kuwait.
“We renew our previous calls for Iran to start negotiations to demarcate the eastern border of the submerged divided area between the Kingdom and Kuwait as one negotiating party opposite the Iranian side,” the ministry stated.
The Al-Durra gas field is a common submerged area between Saudi Arabia and Kuwait located in the Arabian Gulf.
It is situated within the Al-Ahsa governorate, which is a part of the Eastern province of Saudi Arabia.
The discovery of this oil field dates back to the 1960s, which coincided with the commencement of the demarcation process for the maritime borders between Saudi Arabia and Kuwait.
The dispute over its ownership and exploitation rights arises from differing interpretations of maritime boundaries and conflicting claims by Tehran.
In 2001, Iran began granting contracts for its exploration, which prompted Saudi Arabia and Kuwait to finalize the demarcation of their maritime borders, which included the Al-Durra oil field.
Despite objections from Iran, Saudi Arabia and Kuwait signed an agreement in 2022 to jointly develop and explore the field.
RIYADH: In a bid to speed up Saudi Arabia’s aim to integrate supply chains, the Ministry of Industry and Mineral Resources has launched an industrial platform to help manufacturers procure petrochemical raw materials efficiently.
According to the ministry, this platform falls under the umbrella of the Petrochemical Supply Chains Integration Committee, which intends to boost the production capacity of existing manufacturing plants and increase investment in the sector.
This move will improve the supply chain integration of the petrochemical and manufacturing industries.
The ministry stated that the service aims to promote and strengthen the sector in the Kingdom by matching the availability of petrochemical materials with the needs of the manufacturing industry.
“The service aims to ensure that the manufacturing industries benefit from the competitive advantage directed to the petrochemical sector and to provide the integration of the petrochemical sector’s supply chains,” said Jarrah Al-Jarrah, the ministry’s official spokesman.
He added: “In addition to automating the mechanism for requesting support in procuring petrochemical raw materials, it addresses challenges faced by relevant authorities.”
The Kingdom’s plans to become a hub for global manufacturing, which would revolutionize its industrial base, are well underway as part of its Vision 2030 strategy, Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef said during the World Economic Forum in Davos in January this year.
“With our great location, access to different markets (and natural resources), as well as our most important asset — our people and our talent — we can be a serious player in attracting investments in manufacturing,” he explained at the event.
RIYADH: Saudi Arabia’s finance companies have seen their collective portfolios surge 10.8 percent to reach SR75.45 billion ($20 billion), according to the latest figures released by the Saudi Central Bank.
Growth occurred across most indicators at varying rates in 2022 — the period covered by the report — with the total assets of the sector rising by 6.5 percent to SR57.02 billion.
Net income also rose by 3.3 percent in 2022, reaching SR1.86 billion, according to the annual report by the bank, also known as SAMA.
As for the firms’ paid-up share capital, it amounted to SR14.64 billion by the end of last year, showing a slight rise of 0.6 percent.
Finance portfolios comprise a wide range of investments including stocks, bonds, commodities, cash, and cash equivalents.
According to SAMA, the retail sector made up the largest portion of loan portfolios at 76 percent, followed by micro, small and medium enterprises at 21 percent, and corporate at 3 percent.
In May, Saudi Arabia’s business sector also saw a boom across most segments, showed the latest data.
In turn, banks extended loans, overdrafts and lines of credit to companies seeking to invest in their projects, purchase capital goods and expand operations.
Out of the 16 business segments of the National Classification of Economic Activities, 15 registered an annual increase in bank credit for May. The only segment that witnessed a dip was agriculture, forestry and fishing, which fell by 8.06 percent.
Bank credit to professional, scientific and technical activities in Saudi Arabia increased 49.49 percent to SR5.01 billion in May, from SR3.35 billion in the same month last year, reported SAMA.
The central banks’ May monthly report revealed that the segment also recorded a 21 percent increase in bank credit compared to SR4.11 billion in April.
It encompasses a wide range of professional services, including legal and accounting, architectural and engineering, technical tests and analysis, and research and development in scientific fields.
The Kingdom has seen significant growth in the segment, with state-run institutions such as the Research Development and Innovation Authority collaborating with the private sector to promote innovation and entrepreneurship.
The sector is also set to play a crucial role in the Kingdom’s Vision 2030 diversification strategy that aims to reduce dependence on oil revenues and develop a knowledge-based economy, with German research platform Statista projecting it to reach $8.5 billion in 2024.