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.



Gulf States Accelerate Adoption of Unified Digital Government Platforms

A Tawakkalna app events in Saudi Arabia (Asharq Al-Awsat)
A Tawakkalna app events in Saudi Arabia (Asharq Al-Awsat)
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Gulf States Accelerate Adoption of Unified Digital Government Platforms

A Tawakkalna app events in Saudi Arabia (Asharq Al-Awsat)
A Tawakkalna app events in Saudi Arabia (Asharq Al-Awsat)

Gulf governments are moving swiftly to leverage modern technology in reshaping citizen-government relations, with a strong push toward digital transformation and more efficient, user-centric public services.

At the forefront of this shift are unified government applications that constitute comprehensive digital platforms that combine smart technology with seamless usability.

According to a recent study by Strategy& Middle East, a member of the PwC network, these platforms are no longer optional but have become strategic necessities.

The study, titled “Unified Government Apps: Smart Choices for Services and Cost Control,” highlights that citizens and residents can now complete services such as issuing birth certificates, renewing business licenses, or applying for social support within minutes, without physically visiting a government office.

Tawakkalna: A Saudi Model

Saudi Arabia’s Tawakkalna app, originally launched as a health tool during the COVID-19 pandemic, has since evolved into a comprehensive digital gateway offering over 1,100 government services.

Dr. Esam Al-Wagait, Director of the National Information Center at the Saudi Data and Artificial Intelligence Authority (SDAIA), noted the Kingdom’s aim to build a proactive digital government powered by AI.

“We are creating an integrated system that uses advanced technology to predict citizen needs and deliver personalized experiences aligned with smart and sustainable city goals,” he said.

Engineer Saleh Mosaibah, Deputy Director of the National Information Center, added that unified platforms enhance inter-agency collaboration, reduce operational costs, strengthen cybersecurity, and boost Saudi Arabia’s regional and global competitiveness.

Challenges and Solutions

Despite progress, the study noted operational and technical challenges remain, particularly around user expectations for faster, smoother service. Repeated logins and redundant data entry were identified as key obstacles.

Engineer Hani Zein, Partner at Strategy& Middle East, stressed the need for seamless, single-entry platforms powered by artificial intelligence.

“Unified interfaces are the future. They improve service delivery, enhance quality of life, and align with Gulf digital transformation goals,” he said.

Investment and Private Sector Integration

Experts stress that building such applications requires significant investment in IT infrastructure, data integration, and cybersecurity. “These are not just tech expenses, they are investments in smarter, more cost-efficient governance,” said Mosaibah.

The private sector also presents growth opportunities. Licensed companies could offer services through government platforms for a fee, or strategic partnerships could bring in private funding and innovation without straining public budgets.

Building a Sustainable Model

To ensure sustainability, Zein recommends a three-pillar approach: an agile operational model inspired by startups, strong legal and financial frameworks, and robust risk management systems. These foundations, he said, enable governments to move quickly, innovate freely, and maintain public trust.

With the right strategy, Zein and Mosaibah believe Saudi Arabia is well-positioned to set global standards for integrated digital government, offering a world-class experience for citizens and residents alike.