Saudi private sector pays the least among GCC nations

Updated 13 February 2013
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Saudi private sector pays the least among GCC nations

A study conducted by the World Bank in conjunction with the Saudi Ministry of Planning showed that Saudis are the least paid in the private sector in GCC and EU countries. The average salary of Saudis is SR 6,400 per month while the GCC national average is SR 15,200.
Abdul Aziz Al-Owaishiq, minister plenipotentiary to the Gulf Cooperation Council and head of the International Economic Relations at the council, admitted that Saudis are the least paid among the GCC countries and that Saudi Arabia has the highest unemployment rate which stood at 12.2 percent in 2012.
He said that the majority of unemployed citizens are university graduate degree holders.
Al-Owaishiq suggests that the Ministry of Labor should invest more in its new programs, such as Nitaqat and Hafez, to provide jobs that meet higher education outcomes. He also said that universities should provide students with skills that are needed most by the job market.
Students should also begin their careers in the second year in college until they graduate, he argued.
Low salaries in the private sector are linked to the dependence of businessmen on cheap foreign labor, said Yasin Al-Jefri, a financial analyst.
Nevertheless, the cost of living in Saudi Arabia is the lowest in GCC countries. This makes it easy for the foreign workers, who are singles in general, to adjust with their pay scales. This puts pressure on national manpower to accept the low salaries offered by the private sector.
Yasin thinks that many Saudi businessmen prefer cheap foreign labor over Saudi manpower.
However, Farooq Al-Khateeb, academic and financial analyst, still does not believe that Saudis don’t have equal opportunities in the private sector as their foreign counterparts.
“What we see right now is that many Saudis are employed in the private sector. There is no difference between the salaries of Saudis and non-Saudis because of the new regulations controlling wages.


Saudi Arabia’s King Salman will patronize the launch of the Qiddiya Project

Updated 24 April 2018
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Saudi Arabia’s King Salman will patronize the launch of the Qiddiya Project

JEDDAH: Saudi Arabia’s King Salman will patronize on Wednesday the launch of the “Qiddiya” Project which is the new entertainment, sports and cultural destination in the Kingdom.
The project will be built in Al-Giddiya area, some 40 km west of the capital, Riyadh.
The foundation stone ceremony of will be attended by a host of local and international officials, as well as a number of decision-makers, major investors and representatives of the regional and international companies, marking the launch of the project’s formal infrastructure. The first phase will be completed by 2022.
In a statement to Saudi Press Agency (SPA), Dr. Fahd bin Abdullah Tounsi, Secretary General of the Foundation Council of the Qiddiya Project of the Public Investment Fund (PIF) said that the inauguration of this vital project is a real translation of the aspirations of the Kingdom’s wise leadership and its relentless efforts to develop mega projects that would contribute effectively to achieve many direct and indirect economic returns, and to advance sustainable development for the benefit of the homeland and the citizen, in accordance with the Kingdom’s Vision 2030.
“About two-thirds of the Kingdom’s population is under the age of 35. There is a great need for Qiddiya Project to provide them with entertainment. The project will save about $30 billion, which will be used to develop the domestic economy and create new job opportunities for Saudi youths,” he added.
For his part, Michael Reininger, Chief Executive of Qiddiya, said, “we are delighted to be a key contributor to boost the Kingdom’s economic development and investment, not only for the entertainment industry but also to projects that will develop the capabilities the young Saudi people.”