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Saudi Malls, Supermarkets, Restaurants Told to Increase Hiring of Saudi Nationals

Makkah Mall, one of the shopping malls operated by Arabian Centers, is pictured in Makkah, Saudi Arabia, April 17, 2019. (Reuters)
Makkah Mall, one of the shopping malls operated by Arabian Centers, is pictured in Makkah, Saudi Arabia, April 17, 2019. (Reuters)
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Saudi Malls, Supermarkets, Restaurants Told to Increase Hiring of Saudi Nationals

Makkah Mall, one of the shopping malls operated by Arabian Centers, is pictured in Makkah, Saudi Arabia, April 17, 2019. (Reuters)
Makkah Mall, one of the shopping malls operated by Arabian Centers, is pictured in Makkah, Saudi Arabia, April 17, 2019. (Reuters)

Malls, supermarkets, restaurants and cafes in Saudi Arabia must increase their percentage of local hires, the Kingdom’s ministry of human resources and social development announced on Wednesday.

A set of three decisions announced by Minister Ahmed bin Suleiman al-Rajhi was expected to provide 51,000 jobs for Saudi men and women, state news agency SPA reported. The move is part of a wider governmental push to replace expatriate workers with Saudi citizens.

The first decision would limit only Saudis to work in malls and mall management offices, “with the exception of a limited number of activities and professions in these malls.”

Supermarkets, restaurants and cafes would have to increase the number of Saudi citizens on payroll, in keeping with ministry issued guidelines.

Penalties would be issued to commercial establishments that violate the new ordinances, according to SPA, the rules of which would be made available on the ministry website.

Unemployment among Saudi citizens fell to 12.6% in the fourth quarter of 2020 from 14.9% in the third quarter, official data from the world’s biggest oil exporter showed on Wednesday.

The government has been pushing through economic reforms since 2016 to create millions of jobs and reduce unemployment to 7% by 2030. The plans were disrupted by the coronavirus crisis, which sent oil prices plummeting last year.

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Saudi PIF Buys Istidamah Holding’s Stake in MBC for $2 Billion

Photo taken during MBC Group's opening of its new headquarters in Riyadh (SPA)
Photo taken during MBC Group's opening of its new headquarters in Riyadh (SPA)
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Saudi PIF Buys Istidamah Holding’s Stake in MBC for $2 Billion

Photo taken during MBC Group's opening of its new headquarters in Riyadh (SPA)
Photo taken during MBC Group's opening of its new headquarters in Riyadh (SPA)

The Saudi media group MBC has announced that Istidamah Holding, one of its shareholders, signed an agreement to sell its 54% stake to the Public Investment Fund (PIF) for around $1 billion (SAR 7.5 billion). This has pushed MBC’s share price up by the maximum limit of 10% in Sunday’s trading.
According to the terms of the sale and purchase agreement, disclosed by MBC to the Saudi Stock Exchange (Tadawul) on Sunday, Istidamah Holding, owned by the Ministry of Finance, will transfer its entire stake in MBC to PIF, positioning PIF as the controlling shareholder of the company.
MBC reported that the private transaction values each share at SAR 41.6 ($11.1), involving the sale of 179.55 million shares. The deal is expected to close following regulatory approvals.
MBC shares rose to the maximum limit of 10%, reaching SAR 45.75 after the announcement.
In his comments on the deal, the Senior Head of Asset Management at Arbah Capital, Mohammad Farraj, told Asharq Al-Awsat that the acquisition of a significant stake in MBC by the Saudi Public Investment Fund marks a milestone in the history of media and entertainment in the region.
He explained that this strategic move reflects increased confidence in the sector’s ability to achieve sustainable growth and underscores the government’s commitment to supporting and developing this vital economic engine.
In the long term, Farraj said he expects MBC’s stock to achieve sustainable growth for several reasons, including government support, as MBC will benefit from substantial government backing through PIF, enabling it to pursue ambitious projects and expand its operations.
In addition, MBC plans to focus on producing high-quality content to meet diverse audience needs, which will enhance its popularity and attract more advertisers, he remarked.
Farraj pointed out that the company aims to broaden its reach into new markets outside Saudi Arabia, increasing revenues and reinforcing its position as a global brand.
The analyst also suggested that PIF’s acquisition of MBC could attract further local and foreign investments into the sector, bolstering its competitiveness and innovation.
“A new generation of innovative products and services, such as digital platforms and specialized apps, will enhance user experiences and open new growth avenues,” he said.
MBC was the first new listing on the Tadawul index in 2024, following its initial public offering (IPO) of 10% of its shares at the end of the previous year, raising $222 million. The group offered 33.25 million common shares, representing 10% of its capital, at an IPO price of SAR 25 per share.
MBC Group’s profits rose by 66.5% year-on-year in the second quarter of the current year, reaching $31 million (SAR 116.4 million) in net income, despite an 11.6% drop in revenue, which fell to $256.8 million (SAR 963.9 million).