Govt Incentives Support Sustainability of Saudi Employment in Private Sector

Private sector companies attracted 49,300 Saudis in October. (Asharq Al-Awsat)
Private sector companies attracted 49,300 Saudis in October. (Asharq Al-Awsat)
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Govt Incentives Support Sustainability of Saudi Employment in Private Sector

Private sector companies attracted 49,300 Saudis in October. (Asharq Al-Awsat)
Private sector companies attracted 49,300 Saudis in October. (Asharq Al-Awsat)

Three main factors provided by the Saudi government have helped sustain the employment of citizens in the private sector over the past years.

Those include financial incentives and rewards, continuous training and development, and support and nationalization programs.

According to a report by the National Labor Observatory of the Human Resources Fund on Sunday, a copy of which was reviewed by Asharq Al-Awsat, the local labor market was able to employ more than 714,000 people in the private sector during a period ranging between five to 10 working years.

Private sector companies attracted 49,300 citizens last October. This comes after non-oil sector companies recorded a strong performance during the same month, in terms of employment, the highest in nine years, according to the Purchasing Managers’ Index issued by Riyad Bank in cooperation with Standard & Poor’s.

The report revealed that the total number of citizens working in the private sector reached more than 611,000 employees between one and three years, while the number of Saudis in private companies between three and five years reached more than 377,000 workers.

A recent report issued by the Saudi Ministry of Economy and Planning pointed to an improvement in the business environment in Saudi Arabia, as non-oil private sector companies witnessed a continuous growth in performance.

The report revealed that new orders increased positively at the beginning of the second quarter, which led to a strong growth in economic activity, production and employment.



Oil Steady after US Stockpile Build

An oil pump of IPC Petroleum France is seen at sunset outside Soudron, near Reims, France, August 24, 2022. REUTERS/Pascal Rossignol/File Photo
An oil pump of IPC Petroleum France is seen at sunset outside Soudron, near Reims, France, August 24, 2022. REUTERS/Pascal Rossignol/File Photo
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Oil Steady after US Stockpile Build

An oil pump of IPC Petroleum France is seen at sunset outside Soudron, near Reims, France, August 24, 2022. REUTERS/Pascal Rossignol/File Photo
An oil pump of IPC Petroleum France is seen at sunset outside Soudron, near Reims, France, August 24, 2022. REUTERS/Pascal Rossignol/File Photo

Oil prices steadied on Thursday after falling more than 1% the previous day because of a build in US gasoline and diesel inventories and cuts to Saudi Arabia's July prices for Asia.

Brent crude futures were up 23 cents, or 0.35%, at $65.09 a barrel by 1148 GMT. US West Texas Intermediate crude gained 16 cents, or 0.25%, to $63.01 a barrel.

Oil prices closed around 1% lower on Wednesday after official data showed that US gasoline and distillate stockpiles grew more than expected, reflecting weaker demand in the world's largest economy.

Geopolitics and the Canadian wildfires, which can reduce oil production, provide price support despite a potentially over-supplied market in the second half of the year with expected OPEC+ production hikes, PVM analyst Tamas Varga said.

The price cut by Saudi Arabia followed the OPEC+ move over the weekend to increase output by 411,000 barrels per day (bpd) for July.

The strategy of OPEC's Saudi Arabia is partly to punish over-producers by potentially unwinding 2.2 million bpd between June and the end of October, in a bid to wrestle back market share, Reuters previously reported.

"Oil demand will be shaped by trade negotiations between the US and its trading partners," PVM's Varga said.