Private sector partnerships created 400k jobs for Saudis since 2018

Private sector partnerships created 400k jobs for Saudis since 2018
Saudi Arabia has the lowest dependence on foreign labor among Gulf Cooperation Council countries at around 77 percent, while Qatar has the highest, at about 94 percent. (Social media)
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Updated 13 June 2021

Private sector partnerships created 400k jobs for Saudis since 2018

Private sector partnerships created 400k jobs for Saudis since 2018
  • Saudi Arabia seeks to raise $54.5 billion over the next 4 years through its privatization program

RIYADH: Jobs have been created for about 400,000 Saudi nationals as a result of 11 Saudization agreements put in place since 2018, the Argaam website reported, citing information from Abdullah Abuthnain, vice minister of human resources and social development at the Ministry of Human Resources and Social Development.

Increased privatization and Saudization of roles are the key goals of the Kingdom’s Vision 2030 program.

Finance Minister Mohammed Al-Jadaan last month said that Saudi Arabia is seeking to raise about $54.5 billion over the next four years through its privatization program.

Al-Jadaan expects to raise $38 billion through asset sales and $16.5 billion through public-private partnerships, he told the Financial Times.

The Saudi government has identified 160 projects in 16 sectors, including asset sales and public-private partnerships through 2025.

Asset sales will include government-owned hotels, television broadcasting towers, and cooling and water desalination plants.

The plan does not include Public Investment Fund entities or the sale of other assets of Saudi Aramco. The new privatization law will be enacted in Saudi Arabia in July this year.

The National Privatization Center (NCP) in March also announced the creation of the Registry of Privatization Projects, a comprehensive central database of information and documents related to projects targeted for privatization.

According to the director general of Strategic Communication and Marketing at the NCP, Hani Al-Saigh, the new system seeks to enhance the existing privatization system. One of its most important roles will be to strengthen existing governance and ensure fairness and transparency.

“The law allows participants from the private sector to set up a committee to submit grievances related to the bidding and selection procedures of privatization projects and lay the regulatory basis to compensate the aggrieved in case the gap cannot be addressed,” he told Arab News.

A report by the National Labor Observatory issued in April this year indicated that the percentage of Saudization in the private sector rose to 22.75 percent in the first quarter of 2021 compared to 20.37 percent during the same period last year.

Recent data has shown that seven major job groupings in the private sector have achieved Saudization figures of more than 50 percent. While the rate across the private sector as a whole is around a quarter, Al-Eqtisadiah newspaper reported that the financial and insurance sector had achieved a rate of 83.6 percent, followed by public administration, defense, and mandatory social insurance (71.9 percent), mining, and quarrying activities (63.2 percent), education (52.9 percent), and information and communications (50.7 percent).

Saudi Arabia has the lowest dependence on foreign labor among Gulf Cooperation Council countries at around 77 percent, while Qatar has the highest, at about 94 percent, according to data from S&P Ratings.

While the Saudization figure is moving in a positive direction, some sectors face challenges. In December, the Saudi government added accountancy to the list of professions set to be Saudized, announcing that 30 percent of all accounting jobs at all local Saudi private sector companies with at least five accounting professionals must be filled by Saudi nationals. 

The ruling will come into effect on June 21 this year, and it is predicted that the move will create around 9,800 job opportunities for Saudi accountants.


Saudi-listed East Pipes erases $40m profit as project delays weigh on sales  

Saudi-listed East Pipes erases $40m profit as project delays weigh on sales  
Updated 11 sec ago

Saudi-listed East Pipes erases $40m profit as project delays weigh on sales  

Saudi-listed East Pipes erases $40m profit as project delays weigh on sales  

RIYADH: Saudi East Pipes Integrated Co. for Industry has turned to losses of SR3.25 million ($865,000) in this fiscal year, as project delays and supply chain disruptions weighed on sales.

The company, which made a profit of SR148 million with SR935.5 million in revenue in the last fiscal year, saw its revenue drop by 36 percent to SR597 million in the year ended Mar. 31, 2022, according to a bourse filing.

The firm said the results were driven by “delays in releasing and awarding key projects by major clients” in addition to “supply chain interruptions, resulting from the COVID-19 pandemic.”

Additionally, a sharp increase in the costs of raw materials dragged down its gross profit from SR230 million to SR35 million, an 85-percent decline year-on-year.

East Pipes, which joined the Saudi stock exchange earlier this year, was established in 2010 and specializes in manufacturing steel pipes.

Ahead of listing, the pipe manufacturer had raised SR504 million of proceeds from an initial public offering.

 


Saudi stock exchange approves listing of $4bn government debt

Saudi stock exchange approves listing of $4bn government debt
Updated 6 min 43 sec ago

Saudi stock exchange approves listing of $4bn government debt

Saudi stock exchange approves listing of $4bn government debt

RIYADH: The Saudi stock exchange has approved the listing of SR14.95 billion ($4 billion) worth of government debt instruments submitted by the Ministry of Finance, it said in a statement.

The amount will be used to increase the size of three existing issuances to reach SR26.4 billion, SR29.7 billion, and SR14.3 billion, respectively.

The listing and trading of the instruments will start on May 29, Tadawul said in a statement.


Crypto Moves — Bitcoin, Ether down; JPMorgan sees significant upside to bitcoin’s price

Crypto Moves — Bitcoin, Ether down; JPMorgan sees significant upside to bitcoin’s price
Updated 7 min 46 sec ago

Crypto Moves — Bitcoin, Ether down; JPMorgan sees significant upside to bitcoin’s price

Crypto Moves — Bitcoin, Ether down; JPMorgan sees significant upside to bitcoin’s price

RIYADH: Bitcoin, the leading cryptocurrency internationally, traded lower on Thursday, falling by 1.40 percent to $29,000 as of 3:23 p.m. Riyadh time. 

Ether, the second most traded cryptocurrency, was priced at $1,819 down by 6.44 percent, according to data from CoinDesk.

JPMorgan sees upside 

The global investment bank JPMorgan sees significant upside to the price of bitcoin.

The global investment bank’s price target for the cryptocurrency is 28 percent above its current price, Bitcoin.com reported. 

“The past month’s crypto market correction looks more like capitulation relative to last January/February and going forward we see upside for bitcoin and crypto markets more generally,” JPMorgan said. 

JPMorgan has also replaced real estate with cryptocurrency as the preferred alternative asset class along with hedge funds, according to Bitcoin.com. 

“We thus replace real estate with digital assets as our preferred alternative asset class along with hedge funds,” the bank added. 

While the investment bank’s price target for bitcoin is $38,000, its strategists have said that their long-term theoretical target price for the cryptocurrency is $150,000.

IMF chief’s plea

Kristalina Georgieva, the managing director of the International Monetary Fund, discussed cryptocurrency at the World Economic Forum’s annual meeting in Davos.

Georgieva urged people not to completely avoid cryptocurrencies following the recent collapse of the terrausd (UST) algorithm and cryptocurrency Terra (LUNA), Bloomberg reported.


ACWA Power signs deal to develop ammonia plant in Oman

ACWA Power signs deal to develop ammonia plant in Oman
Updated 6 min 21 sec ago

ACWA Power signs deal to develop ammonia plant in Oman

ACWA Power signs deal to develop ammonia plant in Oman

RIYADH: ACWA Power on Thursday signed an agreement with Omani energy company OQ and Air Products to develop a multibillion-dollar world-scale green hydrogen-based ammonia production plant in Oman. 

Powered by renewable energy, the facility will produce green energy products, according to a statement. 

The statement did not mention the exact value of the project. 

The green hydrogen-based ammonia production facility is anticipated to be equally owned by the project partners. 

“Our investment in developing and building water desalination and power production plants in Oman started in 2011, and we continue to expand our robust portfolio in the Sultanate,” ACWA Power chairman said. 

“Utilizing our global expertise, we were successfully able to launch Oman’s first utility-scale renewable energy project,” Mohammad A. Abunayyan added.


TASI reverses gains to close the week lower: Closing bell

TASI reverses gains to close the week lower: Closing bell
Updated 30 min 46 sec ago

TASI reverses gains to close the week lower: Closing bell

TASI reverses gains to close the week lower: Closing bell
  • In the financial sector, the Kingdom’s largest valued bank Al Rajhi edged down 0.11 percent, while Alinma Bank fell 0.13 percent

RIYADH: Saudi Arabia’s main index reversed some of its gains to close lower on the last trading day of the week, as investor concerns shifted over a recession.

As of Thursday’s closing bell, TASI, fell 0.47 percent to reach 12,530, while the parallel market, Nomu, gained 1.14 percent  at 22,272.

Alhokair Group was up 10 percent, leading the market gainers; Wataniya Insurance Co. was down 8.81 percent, leading the fallers since the beginning of the trading session.

The stock price of Ataa Educational Co. fell 1.80 percent, following approval by the Capital Market Authority to raise capital by $112 million to acquire Naba'a.

Among the other gainers, CHUBB Arabia Cooperative Insurance Co. rose 4.08 percent, and Fawaz Abdulaziz Alhokair Co. was up 3.89 percent.

Shares of PIF-owned Elm Co. edged up by 1.98 percent, and shares of Saudi oil giant Aramco fell by 0.73 percent.

In the financial sector, the Kingdom’s largest valued bank Al Rajhi edged down 0.11 percent, while Alinma Bank fell 0.13 percent.

Among the telecom giants, Shares of stc added 0.38 percent, while shares of Zain KSA closed flat.

In the pharmaceutical sector, Aldawaa Medical Services Co. remained unchanged and Nahdi Medical Co. edged up 1.16 percent.

The energy market saw Brent crude trading at $114.45 a barrel and US West Texas Intermediate crude reached $110.95 a barrel, as of 3:19 p.m. Saudi time.