Nitaqat: Saudi employment in construction sector impressive

Updated 10 January 2015
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Nitaqat: Saudi employment in construction sector impressive

Since 2011, several Saudization initiatives have been launched by the Ministry of Labor; notably the Nitaqat program. This program achieved high levels of compliance in the two years since its launch, with companies classified within the red domain dropping by 75 percent, Jadwa Investment says in its 2015 Saudi Economy Report
“We believe that there is still much room for broader enforcement, given that unclassified companies — mainly small businesses — constitute 86 percent of total companies in the Kingdom,” said the Jadwa economists.
Citing data from the Ministry of Labor, they said that the Saudization rate in the private sector increased from 10.9 percent to 15.2 percent between 2011 and 2013. The growth in employment of Saudis surpassed that of foreigners since the start of reforms by the Ministry of Labor.
Saudi employment growth in the private sector averaged 26.7 percent between 2011 and 2013 , while growth in foreign employment averaged 9.4 percent during the same period, said the Jadwa report.
Between 2011 and 2013, the transport and communications sector recorded the highest improvement in Saudization rates from 9 percent to 20 percent. Manufacturing also underwent a notable improvement in Saudization rates (from 13 percent to 19.3 percent). Saudization rates in the retail and construction sectors also improved from 12.9 percent and 7.2 percent to 18.4 percent and 10.3 percent respectively, said the report.
Taking average growth for the period between 2011 and 2013, improved Saudization rates in the transport sector came mainly as a result of a significant 59 percent growth in employment of Saudis. Average Saudi employment growth in the manufacturing and wholesale and retail sectors was also high, at 25 percent each.
Meanwhile employment growth for non-Saudis averaged just 4 percent and 7 percent respectively. The construction sector — the most labor intensive part of the private sector — recorded an impressive 34 percent average growth in employment of Saudis, while employment of non-Saudis in the sector grew by 14 percent.
The higher growth in Saudi employment in the construction sector is impressive given the particularly high wage differential from non-Saudis. Saudis in the construction sector earned a monthly average of SR3,330 in 2013, while non-Saudis earned only SR1,029.
“Looking ahead, we see that while employment growth of nationals in labor intensive sectors is expected to continue improving as companies in these sectors adjust to new norms, further raising the Saudization rate in high-skilled sectors — mainly manufacturing – remains a challenge,” said the researchers.
“We believe that one of the main impediments to higher growth of Saudi employment in these sectors is the lack of skill-matching between educational achievements and these sector’s requirements; a challenge that we believe is being matched through ongoing initiatives that include significant investments in the education sector particularly on vocational training as well as the ongoing King Abdullah foreign scholarship program,” the researchers added.


Huawei first-quarter revenue grows 39% to $27 billion amid heightened US pressure

Updated 29 min 29 sec ago
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Huawei first-quarter revenue grows 39% to $27 billion amid heightened US pressure

  • The world’s biggest telecoms equipment maker also said its net profit margin was around 8 percent for the quarter
  • Washington has intensified a campaign against Huawei, alleging its equipment could be used for espionage

HONG KONG: Huawei Technologies said on Monday its first-quarter revenue jumped 39 percent to 179.7 billion yuan ($26.81 billion), in the Chinese technology firm’s first-ever quarterly results.
The Shenzhen-based firm, the world’s biggest telecoms equipment maker, also said its net profit margin was around 8 percent for the quarter, which it added was slightly higher than the same period last year. Huawei did not disclose its actual net profit.
The limited results announcement comes at a time when Washington has intensified a campaign against unlisted Huawei, alleging its equipment could be used for espionage and urging US allies to ban it from building next-generation 5G mobile networks.
Huawei has repeatedly denied the allegations and launched an unprecedented media blitz by opening up its campus to journalists and making its typically low-key founder, Ren Zhengfei, available for media interviews.
The Chinese firm, which is also the world’s No. 3 smartphone maker, said last week the number of contracts it has won to provide 5G telecoms gear increased further despite the US campaign.
By the end of March, Huawei said it had signed 40 commercial 5G contracts with carriers, shipped more than 70,000 5G base stations to markets around the world and expects to have shipped 100,000 by May.
Huawei’s network business saw its first drop in revenue in two years in 2018. But Ren Zhengfei said in an interview with CNBC earlier this month that network equipment sales rose 15 percent while sales of the consumer business increased by more than 70 percent in the first quarter.
“These figures show that we are still growing, not declining,” Ren said.
Guo Ping, rotating chairman of the company, has said he expects all three business groups — consumer, carrier and enterprise — to post double-digit growth this year.
Huawei also said on Monday it had shipped 59 million smartphones in the first quarter. It did not disclose year-ago comparable figures, but according to market research firm Strategy Analytics, Huawei shipped 39.3 million smartphones in the first quarter of 2018.