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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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Saudi Arabia’s Private Sector Ends 2024 with Strongest Sales Growth

 The Saudi capital, Riyadh (AFP)
 The Saudi capital, Riyadh (AFP)
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Saudi Arabia’s Private Sector Ends 2024 with Strongest Sales Growth

 The Saudi capital, Riyadh (AFP)
 The Saudi capital, Riyadh (AFP)

Saudi Arabia’s non-oil private sector concluded 2024 on a high note, with significant increases in sales and business activity fueled by robust domestic and international demand.
The Kingdom’s non-oil GDP is expected to grow by over 4% in both 2024 and 2025, supported by notable improvements in business conditions, according to Riyad Bank’s Purchasing Managers’ Index (PMI) report.
Despite inflationary challenges, the Riyad Bank PMI recorded 58.4 points in December, reflecting strong and accelerated economic recovery, albeit slightly lower than November’s 59.0 points.
The solid performance highlights improvements across non-oil sectors, with new business activity in December growing at its fastest pace in 12 months. This growth reflects rising domestic and global demand. Renewed marketing efforts and strong customer demand encouraged companies to boost production and expand operations, particularly in wholesale and retail.
The PMI has remained above the neutral threshold of 50.0 points since September 2020, signaling continuous expansion in Saudi Arabia’s non-oil economic activity.
The International Monetary Fund (IMF) previously projected sustained momentum in Saudi Arabia’s non-oil reforms, estimating non-oil GDP growth for 2024 at between 3.9% and 4.4%. The IMF noted that growth could reach 8% if reform strategies are fully implemented.
Expansion in International Markets
A surge in exports was among the key factors driving non-oil economic growth in Saudi Arabia. December saw the largest increase in export orders in 17 months, underscoring the success of Saudi policies in opening new markets and fostering strong international trade relationships, supported by ongoing product innovation.
Higher domestic and international demand boosted production levels in December. Companies also worked to enhance operational efficiency, leading to a notable increase in inventory. Purchasing activity accelerated to its highest level in nine months, reflecting the sector’s ability to effectively meet rising demand.
Cost Pressures on Production
Despite significant growth in production and sales, the sector continues to face challenges related to sharp inflation in input costs, driven by heightened demand for raw materials. These pressures have led to higher product prices, although some companies opted to reduce prices to remain competitive and address elevated inventory levels.
Meanwhile, wage cost increases were less pronounced, helping mitigate economic pressures related to salaries.
Future Outlook
Dr. Naif Al-Ghaith, Chief Economist at Riyad Bank, highlighted the positive end to 2024 for the Kingdom’s non-oil private sector, reflecting the progress achieved under Saudi Arabia’s Vision 2030. He noted that the PMI score of 58.4 points demonstrates the sector’s resilience and ongoing expansion.
Al-Ghaith expects non-oil GDP to grow by over 4% in 2024 and 2025, driven by improved business conditions and rising new orders, signaling increased market confidence and demand. Elevated domestic demand and export growth have pushed total sales to their highest level in a year. This, in turn, has led to strong increases in business activity and inventory levels, demonstrating the sector’s ability to meet and capitalize on excess demand, he underlined.