JEDDAH, 29 June 2004 — The entry of a second mobile operator will bring “a lot more” to the Kingdom than reduced call charges. It will help create as many as 15,000 to 20,000 new jobs for young Saudis, according to a study.

“While the new operator is expected to employ between 3,500 and 5,000 men and women directly, it is expected to help create some 15,000 to 20,000 indirect job opportunities in related businesses,” says the study by the Riyadh-based Economic Studies House (ESH).

Commissioned by the MTN Group, an African mobile operator and one of the bidders for the license, the study focuses on the impact the new mobile operator will have on four major aspects of the Kingdom’s economy — direct and indirect job creation for Saudi nationals, transfer of high-tech skills to Saudis, direct investment in the Kingdom’s economy and indirect stimulation of the economy through additional value-added and retail services for Saudi consumers and businesses.

The new company could add as much as $2.5 billion to the market capitalization of the Kingdom’s stock exchange.

Also, the expected skills and technology transfer will help train thousands of men and women for the telecommunications sector, the study says.

The study, which was made available to Arab News yesterday, says the introduction of new technology and advanced services is also expected to provide a strong economic stimulus.

ESH President Abdul Aziz Daghistani said the most challenging economic problem that faced the Kingdom in recent years was the rising unemployment rate, as more than 100,000 school and college leavers attempted to join the workforce annually.

“The second mobile operator will have to hire and train thousands of Saudi employees, as will the new company’s business partners, suppliers and service providers,” Daghistani said.

Newly liberalized telecommunications markets are known to promote increased market penetration, competition and overall numbers of subscribers.

The new operator, who the study says needs to “embrace a comprehensive and effective long-term strategy for training and skills transfer, will play a key role in increasing the mobile phone services penetration level, which is predicted to increase from the current 30 percent to more than 60 percent by 2014.

The MTN Group said it commissioned the report to “help build understanding of the economic impact of deregulation in the Kingdom over the long term.”