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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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Dollar Resumes Upward Trend, Euro Hits Lowest since Nov 2022

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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Dollar Resumes Upward Trend, Euro Hits Lowest since Nov 2022

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

The dollar hit new multi-month highs against the euro and the pound on Thursday, the first day of 2025 trading, as it built on last year's strong gains on expectations US interest rates will remain high relative to peers.

The euro fell to as low as $1.0314, its lowest since November 2022, down around 0.3% on the day. It is now down nearly 8% since its late September highs above $1.12, one major victim of the dollar's recent surge.

Traders anticipate deep interest rate cuts from the European Central Bank in 2025, with markets pricing in at least four 25 basis point cuts, while not being certain of even two such moves from the US Federal Reserve, Reuters reported.

The dollar was hitting milestones across the board and the pound was last down 0.65% at $1.2443, its lowest since April, with its fall accelerating after it broke through resistance around $1.2475.

"It's more of the same at the start of the new calendar year with the dollar continuing to extend its advances in anticipation of Trump putting in place friendly policies at the start of his term," said Lee Hardman, senior currency analyst at MUFG.

US President-elect Donald Trump's policies are widely expected to not only boost growth but also add to upward price pressure. That will lead to a Fed cautious about cutting rates too much further, in turn underpinning US Treasury yields and boost dollar demand.

A weaker growth outlook outside the US, conflict in the Middle East and the Russia-Ukraine war have also added to demand for the dollar.

The dollar also reversed an early loss on Thursday to climb against the Japanese yen, and was last up 0.17% at 157.26.

It reached a five-month high above 158 yen in late December, potentially putting pressure on the Bank of Japan, which is expected to raise interest rates early this year, but possibly not immediately.

"If dollar/yen were to break above 160 ahead of the next BOJ meeting, that could be a catalyst for the BOJ to hike in January rather than wait until March," said Hardman.

"Though for now markets are leaning towards March after the dovish comments from (governor Kazuo) Ueda at his last press conference."

Even those who are more cautious about sustained dollar strength think it could take a long time to play out.

"The dollar may be vulnerable – but only if the US data confound market expectations that the Fed doesn’t cut rates more than once in the first half of this year, and not by more than 50bp in the whole of 2025," said Kit Juckes chief FX strategist at Societe Generale in a note.

"There's a good chance of that happening, but it seems very unlikely that cracks in US growth will appear early in the year – hence my preference for taking any bearish dollar thoughts with me into hibernation until the weather improves."

China's yuan languished at 14-month lows as worries about the health of the world's second-biggest economy, the prospect of US import tariffs from the Trump administration and sliding local yields weighed on investor sentiment.

Elsewhere, the Swiss franc, another victim of the recent dollar strength, gave back early gains to last trade flat at 0.90755 per dollar.

The Australian and New Zealand dollars, however, managed to break away from two-year lows touched on Tuesday. The Aussie was 0.36% higher at $0.6215 having dropped 9% in 2024, its weakest yearly performance since 2018.

The kiwi rose 0.47% to $0.5614.