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Unemployment Among Saudis is Close to Vision 2030 Target

The fourth quarter of 2023 witnessed an increase in the number of female workers. (Asharq Al-Awsat)
The fourth quarter of 2023 witnessed an increase in the number of female workers. (Asharq Al-Awsat)
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Unemployment Among Saudis is Close to Vision 2030 Target

The fourth quarter of 2023 witnessed an increase in the number of female workers. (Asharq Al-Awsat)
The fourth quarter of 2023 witnessed an increase in the number of female workers. (Asharq Al-Awsat)

The unemployment rate among Saudis approached the target of 7 percent, which was set in Vision 2030. At the end of the fourth quarter of 2023, unemployment declined to 7.7 percent, supported by a greater female participation in the labor market.

Human resources experts link this positive development to corrective strategies for the labor market and nationalization programs, as well as specialized programs that target the private sector.

Crown Prince Mohammed bin Salman had previously revealed that Vision 2030 sought to achieve an unemployment target of 4 to 7 percent, stressing that the government would attain this goal before the specified date.

According to data from the General Authority for Statistics (GASTAT) on Thursday, the unemployment rate among Saudis decreased in the fourth quarter of 2023 to the lowest level, due to the rise in the number of female workers and growth rates recorded by non-oil activities in the Kingdom, which contributed to providing more job opportunities.

Unemployment among Saudi women decreased to 13.7 percent compared to 16.3 percent during the third quarter, while the rate among Saudi males remained stable at 4.6 percent.

Experts told Asharq Al-Awsat that the strategies of the current human resources system were able to stimulate the private sector to accelerate the rate of employment of Saudis, in addition to the training, empowerment and guidance support programs of the Human Resources Development Fund, which in turn increased the employment process in the labor market.

Dr. Abdullah Al-Jassar, member of the Saudi Economic Society and the Energy Economics Society, explained to Asharq Al-Awsat that the decline in the unemployment rate among Saudis to 7.7 percent was achieved through support programs launched by the Ministry of Human Resources and Social Development, pointing as well to the growth of job opportunities in the private sector and efforts to stimulate investments and create an attractive economic environment.

Human resources expert Ali Al Eid noted that the entry of a large number of local and international companies into the Saudi labor market, in addition to the launch of a number of major government projects, contributed to raising employment rates.

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Saudi-Yemeni Business Council Looks Forward to Contributing to Reconstruction

The Saudi-Yemeni Business Council has met in Makkah. Asharq Al-Awsat
The Saudi-Yemeni Business Council has met in Makkah. Asharq Al-Awsat
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Saudi-Yemeni Business Council Looks Forward to Contributing to Reconstruction

The Saudi-Yemeni Business Council has met in Makkah. Asharq Al-Awsat
The Saudi-Yemeni Business Council has met in Makkah. Asharq Al-Awsat

The Saudi-Yemeni Business Council is leading the initiative "Saudi Vision and Yemeni Development 2030," which aims to enhance economic ties between Saudi Arabia and Yemen by developing border crossings, establishing economic zones, and creating smart food cities. This contributes to facilitating the movement of goods and people, as well as increasing the volume of trade.

Official data indicates that the trade exchange between Saudi Arabia and Yemen reached approximately 6.3 billion riyals (1.6 billion dollars) in 2023, with Saudi exports accounting for the largest share. Despite this, Yemeni imports are still below the available potential, particularly in the agriculture, fisheries, and mining sectors.

The main projects of this initiative, which is led by the council under chairman of the Saudi-Yemeni Business Council Dr. Abdullah bin Mahfouz, include "the establishment of joint economic zones, development of infrastructure and logistics services, and strengthening investment in the agricultural and renewable energy sectors."

The project also involves creating advanced laboratories for testing livestock, fruits, and vegetables, contributing to improving the quality of goods and increasing Yemen's agricultural and livestock exports to Saudi Arabia.

These efforts aim to enhance food security for Saudi Arabia and achieve economic growth for Yemen.

As part of the future plans to enhance economic partnership, an exhibition titled "Reconstruction and Development of Yemen" will be held in Riyadh next year. This exhibition aims to attract investors from various sectors and strengthen partnerships between Saudi and Yemeni companies.

"Yemeni investments in Saudi Arabia have witnessed significant growth, reaching approximately 18 billion riyals (4.8 billion dollars) by the end of 2023, ranking 13th in terms of investment volume."

These investments focus on wholesale and retail trade, particularly in food products, clothing, and household goods, as well as in sectors such as construction, manufacturing, and logistics services.

Bin Mahfouz explained that "this investment expansion is due to the support provided by the Saudi government to Yemeni investors through streamlining licensing procedures, offering investment incentives, and ensuring a stable investment environment. These factors have contributed to attracting Yemeni capital to Saudi Arabia, while enhancing investors' benefits from available economic opportunities."

Despite the noticeable progress, Yemeni investments face significant challenges. According to bin Mahfouz, the main challenges include "the instability of the Yemeni local currency, the banking restrictions that hinder money transfers, the weak infrastructure in Yemen, and the ongoing armed conflicts that increase investment risks."

He said that the council’s future plans focus on promising projects, including the cultivation of agricultural land in Yemen, the establishment of packaging centers for agricultural products and fishery resources, in addition to developing livestock projects.

Bin Mahfouz emphasized that Yemen is considered a key market for Saudi Arabia in providing agricultural and livestock products that have comparative advantages over similar goods from other countries. According to economic data from 2022, animal production ranks second after agricultural production in terms of its contribution to Yemen's total GDP, accounting for more than 20 percent.