JEDDAH, 11 January 2005 — The Saudi government is ready to spend SR2 billion in the coming months to prepare young Saudis for employment. It will also seek additional funding for this purpose as part of its drive to solve the problem of unemployment, Minister of Labor Dr. Ghazi Al-Gosaibi, said. The money will come from a human resource development fund set up by the government to provide money needed for training young Saudis for jobs.
“Right now we have SR1.8 billion and we are ready to spend it to the last halala if businessmen provide us with training projects ending with employment (for the trainees). We are ready in the coming months to spend SR2 billion on training and to look for other financial resources,” the minister said at a ceremony held in Riyadh on Sunday for the distribution of the Prince Naif Award for Saudization.
The award was established five years ago to honor Saudi businesses encouraging the Saudization program by employing nationals to replace the foreign work force.
Dr. Al-Gosaibi said that 200,000 unemployed young Saudis registered in a job campaign launched by the ministry last month. The campaign was intended to serve as an indicator of unemployment among Saudis and it identified academic qualifications, the kind of jobs sought by them and their general attitude toward work, the minister said.
Describing the unemployment problem as a serious matter, Al-Gosaibi said a more serious approach is required to address it. He expressed confidence that the Kingdom would overcome the problem with large amounts spent on training and more attention given to academic qualifications.
“It is the responsibility of the government and the private sector to work together to find work for the unemployed. Providing jobs is not achieved by issuing government decrees, but rather through joint efforts involving the government, the business sector and the society as a whole,” he said.
In a related development, the Saudi Arabian General Investment Authority (SAGIA) said it had finalized an investment-enhancement strategy aimed at creating a pro-business environment, SAGIA Governor Amr Al-Dabbagh said.
Crown Prince Abdullah earlier gave SAGIA six months to come up with a comprehensive program outlining immediate solutions to the problems facing investors; these solutions include simplifying licensing requirements, reducing paper work and prioritizing investment programs.
Speaking after presenting the crown prince with the results of the studies, Al-Dabbagh said a number of agreements were concluded with government agencies regarding a series of measures to improve the investment atmosphere.
Al-Dabbagh said more than 70 meetings were held over the past six months involving businessmen, government officials and other agencies. These ended with the signing of 17 agreements, all aiming at improving the atmosphere and making it more attractive to local and foreign investors.
The Kingdom has set up a Centennial Fund which, through a combination of financial support and professional guidance, helps young Saudi men and women run their own businesses. SAGIA pledged to work closely with businessmen to set the stage for channeling domestic investments into productive areas.
Saudi Arabia continues to suffer from money flight although it enjoys a strong liquidity status which makes it one of the largest holders of liquidity in the world. Saudi money invested abroad is estimated at $1 trillion.
According to Abdul Rahman Al-Jeraisy, chairman of the Council of Saudi Chambers of Commerce and Industry, Saudi investments abroad range from $800 billion to $1 trillion, with most of the money in the United States and Europe.
