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Kingdom Invests $2.3 Bn to Boost Private Sector Saudi Employment

One of the job fairs that bring together companies with job seekers in Saudi Arabia (Asharq Al-Awsat)
One of the job fairs that bring together companies with job seekers in Saudi Arabia (Asharq Al-Awsat)
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Kingdom Invests $2.3 Bn to Boost Private Sector Saudi Employment

One of the job fairs that bring together companies with job seekers in Saudi Arabia (Asharq Al-Awsat)
One of the job fairs that bring together companies with job seekers in Saudi Arabia (Asharq Al-Awsat)

Saudi Arabia’s Human Resources Development Fund invested around SAR 8.7 billion ($2.3 billion) last year in programs for training, counseling, and empowering. This move aims to boost private sector businesses, increase Saudi employment, and ensure job sustainability.

This effort comes as the Kingdom’s unemployment rate among its citizens nears the 7% target set by the national transformation plan, Vision 2030, dropping to 7.7% by the end of 2023.

The Fund reported Monday that about 1.9 million Saudis benefited from its services and products last year. Over 120,000 establishments across the Kingdom benefited, with 89% falling into the medium, small, and micro-enterprise categories.

The Fund helped over 374,000 Saudis land jobs in the private sector last year, according to its head, Turki Al-Jawini.

Al-Jawini stressed the Fund’s ongoing work to improve Saudi skills, boost their job opportunities, and encourage companies to hire locals. The aim is to strengthen partnerships to train, hire, and support Saudi workers.

The Fund’s goal is to make Saudi workers more competitive and ensure their long-term employment in line with Vision 2030 targets.

Al-Jawini mentioned that the Fund’s new strategy, introduced last year, has made it easier for individuals and businesses to benefit from its programs.

The strategy focuses on three main goals: enhancing Saudi skills to meet job market needs, balancing job supply and demand, and supporting private sector employment.

Experts stress the importance of programs and initiatives offered by the Fund. They believe these efforts help support and empower local workers and make the job market more appealing.

Badr Al-Anzi, a board member of the Saudi Society for Human Resources, affirmed that Saudi Arabia’s efforts have reduced unemployment among Saudis to 7.7%, thanks to government support and strategies focusing on boosting the private sector and ensuring job stability.

Speaking to Asharq Al-Awsat, Al-Anzi added that Saudization policies and initiatives from the Ministry of Human Resources, along with programs from the Fund, have also increased local job opportunities.

Al-Anzi pointed out that the Kingdom aims to improve the work environment and wages, but there may be challenges for companies and citizens once support from the Fund ends, especially in finding new jobs.

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Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
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Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)

Telecommunications companies listed on the Saudi Stock Exchange (Tadawul) achieved a 12.46 percent growth in their net profits, which reached SAR 4.07 billion ($1.09 billion) during the second quarter of 2024, compared to SAR 3.62 billion ($965 million) during the same period last year.

They also recorded a 4.76 percent growth in revenues during the same quarter, after achieving sales worth more than SAR 26.18 billion ($7 billion), compared to SAR 24.99 billion ($6.66 billion) in the same quarter of 2023.

The growth in the revenues and net profitability is the result of several factors, including the increase in sales volume and revenues, especially in the business sector and fifth generation services, as well as the decrease in operating expenses and the focus on improving operational efficiency, controlling costs, and moving towards investment in infrastructure.

The sector comprises four companies, three of which conclude their fiscal year in December: Saudi Telecom Company (STC), Mobily, and Zain Saudi Arabia. The fiscal year of Etihad Atheeb Telecommunications Company (GO) ends on March 31.

According to its financial results announced on Tadawul, Etihad Etisalat Company (Mobily) achieved a 33 percent growth rate of profits, bringing its profits to SAR 661 million by the end of the second quarter of 2024, compared to SAR 497 million during the same period in 2023. The company also achieved a 4.59 percent growth in revenues to reach SAR 4.47 billion, compared to SAR 4.27 billion in the same quarter of last year.

The Saudi Telecom Company achieved the highest net profits among the sector’s companies, at about SAR 3.304 billion in the second quarter of 2024, compared to SAR 3.008 billion in the same quarter of 2023. The company registered a growth of 4.52 percent in revenues.

On the other hand, the revenues of the Saudi Mobile Telecommunications Company (Zain Saudi Arabia) increased by about 6.69 percent, as it recorded SAR 2.55 billion during the second quarter of 2024, compared to SAR 2.39 billion in the same period last year.

Commenting on the quarterly results of the sector’s companies, and the varying net profits, the head of asset management at Rassanah Capital, Thamer Al-Saeed, told Asharq Al-Awsat that the Saudi Telecom Company remains the sector leader in terms of customer base expansion.

He also noted the continued efforts of Mobily and Zain to offer many diverse products and other services.

Financial advisor at the Arab Trader Mohammed Al-Maymouni said the financial results of telecom sector companies have maintained a steady growth, up to 12 percent, adding that Mobily witnessed strong progress compared to the rest of the companies, despite the great competition which affected its revenues.

He added that Zain was moving at a good pace and its revenues have improved during the second quarter of 2024. However, its profits were affected by an increase in the financing cost by SAR 26.5 million riyals and a rise in interest, while net income declined significantly compared to the previous year, during which the company made exceptional returns.