Private Sector Employees Highest Paid in Saudi Arabia

The Saudi private sector records a high performance in employment (Asharq Al-Awsat)
The Saudi private sector records a high performance in employment (Asharq Al-Awsat)
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Private Sector Employees Highest Paid in Saudi Arabia

The Saudi private sector records a high performance in employment (Asharq Al-Awsat)
The Saudi private sector records a high performance in employment (Asharq Al-Awsat)

A total of 965,000 employees earn an average salary of $2,600 or more in Saudi Arabia, according to the latest official Saudi data.

The Saudi private sector continues its high performance in hiring high-wage workers, with about 708,000 employees working in companies and institutions, an equivalent of 73.3 percent.

The Saudi government is developing programs and initiatives to encourage private sector enterprises to generate jobs, most notably employment support from the Human Resource Development Fund (Hadaf).

Hadaf contributes to providing training and employment support programs, bearing a percentage of the wages for employment, training, and qualification for jobs.

The latest data issued by the General Organization for Social Insurance (GOSI) indicated that the number of employees who earn a salary higher than $2,600 in the private sector had reached approximately 708,000, compared to 256,000 employees from government agencies.

The data showed that those earning between $1,300 and 2,600 reached more than one million employees during the second half of this year.

Compared to the same quarter five years ago (2018), official reports show that the total number of those earning $2,600 or more in the private sector reached about 473,000, an increase of 66.8 percent during Q2 of 2023.

According to the data, Riyadh alone contains nearly half of the workers whose wages exceed $2,600 in the public and private sectors in the Q2 of 2023.

- Occupational injuries

The General Organization for Social Insurance indicated that occupational injuries dropped six percent during the second quarter of this year compared to the same period in 2022.

GOSI explained that preventive and educational field efforts and the establishment's commitment to applying occupational health and safety standards for workers have contributed to reducing work injuries.

The past three months have witnessed the registry of 5,845 new work injuries, compared to the same period in 2022, where it recorded 6,198 injuries.

According to the GOSI, the decrease in injuries came despite the increase in the percentage of subscribers by 10.9 percent compared to 9.35 million.

The number of establishments increased by 28 percent, reaching 1,200,000, compared to 890,200 during the same period.

- Partner Program

In March 2021, the Crown Prince, Mohammad bin Salman, Prime Minister and Chairman of the Council for Economic and Development Affairs, launched a program to promote the partnership between the private and public sectors.

The program aims to develop partnerships between the government and private sectors and achieve strategic goals, notably increasing the economy's resilience and supporting prosperity and sustainable growth.

It seeks to activate the role of the private sector and enable it to reach a volume of local investments of up to $1.3 trillion in 2030, which would provide hundreds of thousands of job opportunities.



Oil Slumps 3% as Trump's Tariffs Expected to Impede Demand

FILE PHOTO: An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in the Mangystau region, Kazakhstan, November 13, 2023. REUTERS/Turar Kazangapov/File Photo
FILE PHOTO: An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in the Mangystau region, Kazakhstan, November 13, 2023. REUTERS/Turar Kazangapov/File Photo
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Oil Slumps 3% as Trump's Tariffs Expected to Impede Demand

FILE PHOTO: An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in the Mangystau region, Kazakhstan, November 13, 2023. REUTERS/Turar Kazangapov/File Photo
FILE PHOTO: An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in the Mangystau region, Kazakhstan, November 13, 2023. REUTERS/Turar Kazangapov/File Photo

Oil prices fell by over 3% on Thursday after US President Donald Trump announced sweeping new tariffs which investors worry will enflame a global trade war that will curtail economic growth and limit fuel demand.

Brent futures were down $2.66, or 3.55%, to $72.29 a barrel by 0918 GMT US West Texas Intermediate crude futures were down $2.69, or 3.75%, to $69.02.

Trump on Wednesday unveiled a 10% minimum tariff on most goods imported to the United States, the world's biggest oil consumer, with much higher duties on products from dozens of countries, initiating a global trade war that threatens to drive up inflation and stall US and worldwide economic growth, Reuters reported.

"The US tariff announcement clearly caught markets off guard. Pre-announcement speculation suggested a flat 15-20% tariff, but the final decision was more hawkish," Yeap Jun Rong, market strategist at IG, said in an email.

"For oil prices, the focus now shifts to the global growth outlook, which is likely to be revised downward due to these higher-than-expected tariffs," he added.

Imports of oil, gas and refined products were exempted from the new tariffs, the White House said on Wednesday.

UBS analysts on Wednesday cut their oil forecasts by $3 per barrel over 2025-26 to $72 per barrel, citing weaker fundamentals.

Traders and analysts now expect more price volatility in the near term, as the tariffs may change as countries try to negotiate lower rates or impose retaliatory levies.

"Countermeasures are imminent and judging by the initial market reaction, recession and stagflation have become terrifying possibilities," said PVM analyst Tamas Varga.

"As tariffs are ultimately paid for by domestic consumers and businesses, their cost will inevitably increase impeding the rise in economic wealth."

In other news, US Energy Information Administration data on Wednesday showed US crude inventories rose by a surprisingly large 6.2 million barrels last week, against analysts' forecasts for a decline of 2.1 million barrels.

Market participants are also awaiting the outcome of an OPEC+ meeting on Thursday, which will discuss Kazakh output.