Future of Jobs: Technology, green transition to drive opportunities

Future of Jobs: Technology, green transition to drive opportunities
A Saudi trader observes the stock market on monitors at Falcom stock exchange agency in Riyadh, Saudi Arabia, Feb. 7, 2018. (Reuters)
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Updated 01 May 2023
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Future of Jobs: Technology, green transition to drive opportunities

Future of Jobs: Technology, green transition to drive opportunities
  • World Economic Forum report highlights must-have skills for next five years
  • Training workers to use AI, big data will be prioritized by 42% of firms

DUBAI: The job churn in Saudi Arabia is expected to be 23 percent over the next five years, in line with the global average as 23 percent of jobs are expected to change by 2027, with 69 million new jobs created and 83 million eliminated, according to the latest Future of Jobs report by the World Economic Forum.

The fourth edition of the report, which maps the jobs and skills of the future and tracks the pace of change, aims to analyze how macro trends and technology adoption will transform labor markets and affect demand in the next five years.

The key drivers of job growth are macro trends such as green transition, environmental, social and governance standards, and the localization of supply chains.

On the other hand, high inflation, slower economic growth and supply shortages are the economic challenges resulting from the dwindling of jobs.

As more companies adopt new technologies and accelerate digitization, the job market will see a significant churn.

Advancements in technology, particularly in large language models such as ChatGPT, have caused some to be concerned about AI’s potential to overtake humans, resulting in the loss of jobs.

However, the report said there will be an overall net positive in job creation.

Still, it is worth noting that traits such as reasoning, communicating and coordinating — better suited to humans than machines — are expected to be more automated in the future.

AI, for example, which is expected to be adopted by nearly 75 percent of companies, is estimated to lead to high churn with 25 percent of organizations expecting it to create job losses and 50 percent expecting it to create job growth.

“For people around the world, the past three years have been filled with upheaval and uncertainty for their lives and livelihoods, with COVID-19, geopolitical and economic shifts, and the rapid advancement of AI and other technologies now risks adding more uncertainty,” said Saadia Zahidi, managing director of the WEF.

“The good news is that there is a clear way forward to ensure resilience.”

Unsurprisingly, the fastest growing roles are those being driven by technology and digitization. In Saudi Arabia, AI and machine learning specialists are the top roles for business transformation.

Similarly, among industries in the Kingdom, big data analytics is the technology most likely to drive industry transformation (48 percent), followed by digital platforms and apps (45 percent), encryption and cybersecurity (43 percent) and AI (41 percent).

Globally, the employment of data analysts and scientists, big data specialists, AI machine learning specialists and cybersecurity professionals is expected to grow on average by 30 percent in the next five years.

The increased potential of technology will create jobs in the long term, the report said, but it must be accompanied by reskilling and upskilling talent to better suit the evolving job economy.

Training workers to utilize AI and big data will be prioritized by 42 percent of companies in the next five years, ranking behind analytical thinking (48 percent) and creative thinking (43 percent).

The need for reskilling is evident in the report, with companies reporting that skills gaps and an inability to attract talent are the key barriers to transformation.

Six in 10 workers will require training before 2027, and on average, 44 percent of an individual worker’s skills will need to be updated.

Currently, there is a gap between individuals’ skills and companies’ needs and the responsibility of bridging this gap falls on companies and governments, the report said, with 45 percent of surveyed businesses saying that government funding for skills training would help provide more employment opportunities for talent.

For example, according to research conducted by LinkedIn for the report, despite continued growth in green jobs in the past four years, reskilling and upskilling toward green skills are not moving at the same pace.

Investment in climate-related areas and increasing consumer awareness around sustainability are resulting in new job opportunities in the fields of green energy and agriculture.

The strongest factor contributing to job creation in these fields is investment that facilitates the green transition of businesses, with more than 50 percent of organizations surveyed expecting it.

Moreover, as countries shift to more renewable energy sources, jobs such as renewable energy engineers and solar energy installation and systems engineers will be in high demand, according to the report.

Investment will also drive growth more broadly in roles such as sustainability specialists and environmental protection professionals, which are expected to grow by 33 percent and 34 percent respectively.

Jobs for agricultural professionals, especially agricultural equipment operators, graders and sorters, are expected to see a 15 to 30 percent increase, leading to an additional 4 million jobs.

“The sustained growth of green jobs is really great news, particularly for job seekers who are facing upheaval in the labor market,” said Sue Duke, head of Global Public Policy at LinkedIn.

However, LinkedIn’s data shows that despite a “strong demand for talent with green skills, people are not developing green skills at anywhere near a fast enough rate to meet climate targets,” Duke said.

It is a similar story in the field of education, where jobs are expected to grow by about 10 percent, leading to 3 million additional jobs for vocational education teachers and university and higher education teachers.

While demand for social jobs such as those in health and education has grown faster during the pandemic, these job openings are harder to fill than others, according to the employment website Indeed.

“We believe we must continue to embrace AI and technology to help job seekers and employers as we navigate near-term macroeconomic headwinds and long-term labor market challenges,” said Hisayuki Idekoba, president and CEO of Indeed’s parent company, Recruit Holdings.

The company was anticipating a labor shortage for “many years ahead” across several sectors as “the population ages,” he said.

“Therefore, it is essential that we identify new ways to simplify the hiring process to support a thriving economy and society where everyone can prosper together,” Idekoba said.

It is good news then that four in five surveyed companies plan to invest in learning and training on the job in the next five years.

The value of human capital and skills is only increasing with strong cognitive skills being increasingly valued by employers.

Globally, companies see analytical thinking and creative thinking as the most important skills in 2023, and this is expected to remain so in the next five years. Skills related to technological literacy, specifically AI and big data, will become more important and in the next five years.

In Saudi Arabia, analytical thinking is the skill most prioritized for reskilling and upskilling in the next five years, with 55 percent of companies saying so, followed by AI and big data (52 percent).

Zahidi said: “Governments and businesses must invest in supporting the shift to the jobs of the future through the education, reskilling and social support structures that can ensure individuals are at the heart of the future of work.”


Saudi Aramco completes acquisition of 100% equity stake in Chile’s Esmax

Saudi Aramco completes acquisition of 100% equity stake in Chile’s Esmax
Updated 44 min 25 sec ago
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Saudi Aramco completes acquisition of 100% equity stake in Chile’s Esmax

Saudi Aramco completes acquisition of 100% equity stake in Chile’s Esmax
  • Transaction, first announced in September 2023, represents Aramco’s first downstream retail investment in South America

LONDON: Saudi Aramco successfully completed the acquisition of a 100 percent equity stake in Chile’s Esmax Distribucion, a leading diversified downstream fuels and lubricants retailer, it was announced on Friday.

Esmax has a national presence that includes retail fuel stations, airport operations, fuel distribution terminals and a lubricant blending plant. 

The transaction, which was first announced in September 2023, represented Aramco’s first downstream retail investment in South America, illustrating the attractiveness of this market, and supports the Saudi company’s strategic goal to strengthen its downstream value chain.  

“We are delighted to conclude the acquisition of Esmax and look forward to working with the outstanding team on the ground in Chile to achieve our shared ambitions,” Yasser Mufti, Aramco executive vice president of products & customers, said.

“Aramco aims to be a primary global retail player and this deal combines our high quality products and services, including Valvoline lubricants, with the experience and quality of an established operator in Chile.” 


Germany’s WIKA opens new plant in Dammam

Germany’s WIKA opens new plant in Dammam
Updated 01 March 2024
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Germany’s WIKA opens new plant in Dammam

Germany’s WIKA opens new plant in Dammam

DAMMAM: The vast industrial city, known as MODON, situated in the industrial patch of land lined by warehouses and factories in Dammam has a new factory in town. 

The well-established German WIKA group inaugurated their newest plant on Feb. 29, with the local state-of-the-art production facilities meant to streamline every step of their journey forward.

“This is a symbol of our bilateral relationship which consists of a myriad of business, economic, cultural and political relations,” German Ambassador to the Kingdom Michael Kindsgrab said to the crowd.

Kindsgrab, who flew in for the occasion, pointed out how this new plant served as an example of the ample opportunities recently made available to German companies in the Kingdom and would help to further deepen the close relationship between Germany and Saudi Arabia. 

He cited this as his first visit to the Eastern Province and seemed to immensely delight in the cultural offerings on stage when local performers welcomed him — and WIKA — in traditional folk song and dance in between the various speeches.

The launch also brought together Germans and Saudis, as well as the diverse staff at WIKA.

“On behalf of Saudi Aramco, I would like to extend my warm thanks, appreciation and congratulations to WIKA for inaugurating WIKA Saudi Arabia,”  Fawaz Al-Sahan, manager of process automation system division at Saudi Aramco said, adding: “Today I’m honored to celebrate this success with you because we believe that localization has great benefits to both of our companies.

“In terms of scope, I believe that this is the largest instrumentation facility in the Kingdom. I trust this facility will serve as a WIKA hub for the Middle East.”

Alexander Wiegand, chairman and CEO of WIKA, also spoke to the crowd and offered his heartfelt gratitude to those who helped his family-owned company excel over the decades. He lovingly recalled the days when his mother was in charge and how this new facility in Dammam would be an extension of the WIKA family that is celebrating 78 years of operation in 2024.

“WIKA’s expansion in Saudi Arabia will create more than 100 new jobs over the next few years, it thus makes an important contribution to the local job market. In the new plant, German top technology is implemented by a qualified team with in-depth knowledge of the local market. This ensures that customers are supplied with high-quality instrumentation solutions tailored to their specific needs,” Wiegand said.

The factory covers a total area of 3,000 sq. m. Supplied

The new factory, with the logo colors of orange and blue, aims to enable WIKA to serve customers in Saudi Arabia, and the region at large, even more extensively. 

In the future, products for measuring pressure, temperature, level and flow will be manufactured locally on a total area of 3,000 sq. m. This would include diaphragm seals, instrumentation valves and thermometer thermowells for connecting measuring instruments to critical processes. The range of these services will be further expanded.

WIKA, as it was noted at the ceremony, sees itself as a partner in Saudi Arabia’s economic development, especially in the area of expanding economic sectors alongside oil and gas and diversifying beyond it. The group of companies has been present with sales subsidiaries in the Kingdom for over 20 years with about 12,000 employees worldwide, and counting.

In keeping with the Saudi Vision 2030 and the Saudi Made initiative, the launch also had its eye to the future.

“We are not thinking in quarters, we are thinking in decades,” Wiegand concluded.


Arab finance ministers discuss multilateralism, economic development at G20 meeting in Brazil

Arab finance ministers discuss multilateralism, economic development at G20 meeting in Brazil
Updated 01 March 2024
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Arab finance ministers discuss multilateralism, economic development at G20 meeting in Brazil

Arab finance ministers discuss multilateralism, economic development at G20 meeting in Brazil
  • Egypt, UAE attended as guests alongside Saudi Arabia, the only Arab G20 member
  • Saudi minister: Fair trade practices must be promoted ‘to enhance economic opportunities for developing countries’

SAO PAULO: The meeting of G20 finance ministers and central bank governors that took place in Brazil on Feb. 28-29 could not be concluded with a joint statement as there was no consensus over the conflicts in Ukraine and Gaza.

But many of the leaders who attended shared similar concerns regarding the topics suggested as priorities by Brazil, which is the current president of the forum, especially reducing inequality and building multilateral cooperation to address the most pressing global issues such as sustainable development and financial stability.

Three Arab nations took part in the meeting. Besides Saudi Arabia, which is the only Arab member of the G20, Egypt and the UAE attended as guests. They manifested concurrent views regarding the central themes of the forum.

Finance Minister Mohammed Al-Jadaan, who headed the Saudi delegation along with Saudi Central Bank Gov. Ayman Al-Sayari, affirmed during one of the event’s sessions that “addressing debt vulnerabilities in low-income countries cannot happen without multilateral cooperation from all stakeholders, including creditors, debtors, international financial institutions, and the private sector,” the ministry’s media center reported.

Al-Jadaan added that fair trade practices must be promoted “in order to enhance economic opportunities for developing countries.”

Regarding low-income nations’ debt, he said implementation of the G20 Common Framework, an initiative launched a few years ago to support poor countries with unsustainable debt, must go on.

Mohamed Hadi Al-Hussaini, the UAE’s minister for financial affairs, expressed his country’s commitment to reducing inequalities through financial inclusion, Emirates News Agency reported.

He cited the Financial Infrastructure Transformation Programme, launched in 2023 with the goal of speeding up the digital transition in the financial sector.

The initiative shares the same principles as the G20-supported Global Partnership for Financial Inclusion.

Al-Hussaini said innovative instruments may have a relevant role in promoting development, mentioning green bonds and sukuk, a Shariah-compliant bond used in Islamic finance.

He also addressed the UAE’s efforts regarding energy transition and combating climate change.

The Emirati government has been helping vulnerable nations enhance their climate resilience. The UAE pledged $200 million to the Resilience Sustainability Trust in December 2023.

Al-Hussaini said the UAE decided to prioritize multilateral cooperation during the 13th World Trade Organization Ministerial Conference, which was held in Abu Dhabi on Feb. 26-29 and discussed new models for global trade.

Egyptian Finance Minister Mohamed Maait emphasized in his speech that developing nations have been impacted by challenging situations in recent months, something that affects their budgets and their ability to meet their citizens’ needs amid growing inflation crises, Ahram Online reported.

He said international cooperation is fundamental to support countries that are struggling to maintain their efforts for social protection.

He added that Egypt gained great experience in relief programs in recent years. During the COVID-19 pandemic, the country increased its support programs in order to assist vulnerable social segments at a time of economic hardship and high inflation. Any reform needs social programs if the goal is to obtain success, he stressed.

Al-Jadaan had bilateral meetings with Maait, Ilan Goldfajn, who heads the Inter American Development Bank, the French delegation and US Treasury Secretary Janet Yellen. Al-Sayari met with his Turkish counterpart.

According to a statement released by the US Treasury Department, Al-Jadaan and Yellen discussed the Saudi economy, “the progress of its reform program” and the need to “work together effectively in both bilateral and multilateral settings.”

Al-Hussaini met with the finance ministers of South Africa and Germany, as well as the executive president of the Development Bank of Latin America and the Caribbean.


Oil Updates – crude rises, markets await OPEC+ decision amid mixed demand drivers

Oil Updates – crude rises, markets await OPEC+ decision amid mixed demand drivers
Updated 01 March 2024
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Oil Updates – crude rises, markets await OPEC+ decision amid mixed demand drivers

Oil Updates – crude rises, markets await OPEC+ decision amid mixed demand drivers

SINGAPORE: Oil prices edged up on Friday and were set to end the week modestly higher as markets awaited an OPEC+ decision on supply agreements for the second quarter amid differing demand indicators for key consumers US and China, according to Reuters.

Brent futures for May climbed 31 cents, or 0.38 percent, to $82.22 a barrel by 9:45 a.m. Saudi time, while US West Texas Intermediate for April rose 24 cents, or 0.31 percent, to $78.50.

WTI is on track for at least a 2.5 percent increase this week, while Brent is holding near last week’s settlement price. Brent has hovered comfortably above the $80 mark for three weeks.

“Brent crude prices continued to trade sideways this week ... Brent at $83/bbl has shown recent strength although fundamentals remain tilted to oversupply,” said BMI analysts in a client note.

“Expectations of a continuation of OPEC+ production cuts into Q224 is also weighing on sentiment as soft demand is expected to persist ... However, timespreads for Brent futures contracts have widened. The move to stronger backwardation (market structure) will be supportive of a more bullish stance for prices as markets are pricing in tightening in the months ahead,” the analysts added.

A Reuters survey showed the Organization of the Petroleum Exporting Countries pumped 26.42 million barrels per day this month, up 90,000 bpd from January. Libyan output rose month-on-month by 150,000 bpd.

A decision on extending the cuts is expected in the first week of March, sources have said, with individual countries expected to announce their decisions.

Increasing possibilities of OPEC+ continuing with the supply cuts beyond the first quarter, potentially till the end of 2024, will likely keep oil prices above $80 a barrel, said DBS Bank energy sector team lead Suvro Sarkar.

Strong expectations of Saudi Arabia keeping term prices of crude it sells to Asian customers little changed in April from March levels also underpinned the market.

Supporting prices, the Federal Reserve’s preferred inflation gauge, the US personal consumption expenditures index, showed January inflation in line with economists’ expectations, reinforcing market bets for a June interest rate cut. This in turn could lower consumer costs and spur fuel buying activity.

However, a mixed bag of February purchasing managers’ index data from China, the world’s top oil consumer, capped price gains.

China’s manufacturing activity in February contracted for a fifth straight month, an official factory survey showed on Friday, raising pressure on Beijing policymakers to roll out further stimulus measures as factory owners struggle for orders.

“Demand side we concur that 2Q will have hiccups and we are projecting Brent to average lower in 2Q24 compared to 1Q24, before rebounding in 2H24 on the back of the potential rate cut scenario, which should boost fund flows toward riskier assets,” said DBS Bank’s Sarkar. 


Inter-Arab trade at $700bn: Union of Arab Chambers

Inter-Arab trade at $700bn: Union of Arab Chambers
Updated 29 February 2024
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Inter-Arab trade at $700bn: Union of Arab Chambers

Inter-Arab trade at $700bn: Union of Arab Chambers
  • Secretary-general attends World Trade Organization Ministerial Conference in Abu Dhabi
  • ‘The Arab region’s presence in such events aids in shaping policies for freer global trade’

SAO PAULO: Inter-Arab trade stands at $700 billion, constituting 10-11 percent of global trade, the secretary-general of the Union of Arab Chambers said on Thursday during the 13th World Trade Organization Ministerial Conference in Abu Dhabi.

In an interview with Emirates News Agency on the sidelines of the event, Khaled Hanafy highlighted the potential for increased trade, expanded business opportunities, job creation and economic growth across the Arab world through standardization, improved logistics and private sector engagement.

The UAE’s strategic positioning and robust infrastructure make it a preferred hub for international businesses seeking access to international markets, Hanafy said.

Its hosting of prestigious events such as COP28 and the WTO Ministerial Conference underscores its global leadership, communication prowess and influence in international forums, he added.

“The Arab region’s presence in such events aids in shaping policies for freer global trade,” Hanafy said, adding that the conference strengthens the UAC’s position as a representative of the Arab private sector within the WTO, potentially leading to observer status in key technical committees.

This, he said, would empower the UAC to exert greater influence on decisions shaping international trade flows.

The Arab world’s private sector contributes over 75 percent of the region’s gross domestic product, roughly equivalent to $3 trillion. This sector also plays a vital role in employment generation.

Hanafy emphasized the need for even greater private sector involvement in trade to foster business growth and achieve sustainable development across Arab nations.

He championed the UAC’s role in fostering trade cooperation within the Arab world, encompassing both commercial and investment activities.

Hanafy also advocated for the establishment of the Arab Common Market, outlining essential principles for achieving economic unity across the region.

This was the official debut of the Arab private sector at a WTO Ministerial Conference.

With unprecedented access granted to businesses at the event, representatives from regional chambers of commerce seized the opportunity to voice their concerns and aspirations.

Hanafy emphasized the significance of this inclusion at a roundtable event on the sidelines, saying: “This is the first time the Arab private sector is welcomed. The Arab private sector must be here.

“This is a great opportunity. There’s an objective: We want to see the Arab private sector have a larger role.”

Promoting economic cooperation and integration across the Arab world, the UAC unites chambers of commerce, industry and agriculture from the 22 Arab League member states.

It supports governmental and civil society initiatives to strengthen regional economic ties in commerce, industry, agriculture, finance, investment and services.