Unemployment rate in Saudi Arabia drops to 4.4%: GASTAT

Unemployment rate in Saudi Arabia drops to 4.4%: GASTAT
In the fourth quarter, the unemployment rate among Saudi females decreased by 2.6 percentage points to 13.7 percent compared to the previous three months. Shutterstock
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Updated 28 March 2024
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Unemployment rate in Saudi Arabia drops to 4.4%: GASTAT

Unemployment rate in Saudi Arabia drops to 4.4%: GASTAT

RIYADH: Saudi Arabia’s overall unemployment rate dropped to 4.4 percent in the fourth quarter of 2023, marking a decrease of 0.4 percentage points from the same period in 2022.  

When compared with the previous three months, the latest report from the General Authority for Statistics revealed a 0.7 percentage point decline in the Kingdom’s joblessness rate in the fourth quarter of 2023. 

GASTAT data showed that non-employment among Saudi nationals stood at 7.7 percent in the fourth quarter of last year, indicating a decrease of 0.3 percentage points compared to the same period in 2022.  

However, the participation of locals in the labor force during the last three months of 2023 decreased by 1.2 percentage points year on year, reaching 51.3 percent. 

Reducing the number of people without jobs is a crucial objective outlined in Saudi Arabia’s Vision 2030, with goals set for such rate to decrease to 7 percent by the end of the decade, alongside a projected women’s participation rate in the workforce of 30 percent. 

In the fourth quarter, the unemployment rate among Saudi females decreased by 2.6 percentage points to 13.7 percent compared to the previous three months. 

For Saudi males, this remained unchanged at 4.6 percent in the fourth quarter, while their labor force participation decreased by 0.2 percentage points to 66.6 percent. 

Meanwhile, the employment-to-population ratio among women increased by 0.6 percentage points to 30.70 percent during the same period. 

The GASTAT survey revealed that a significant 94.9 percent of Saudi nationals without jobs are open to working in the Kingdom’s private sector. 

Moreover, 80.1 percent of non-employed Saudi females and 91 percent of males indicated that they would accept work for eight hours or more per day. 

The report showed that 62.1 percent of non-employed Saudi females and 43.8 percent of males are willing to commute for a maximum of one hour. 

The most commonly used active job search method among Saudis was to seek assistance from friends and relatives, with 85.6 percent of aspirants following this practice. 

GASTAT reported that 73 percent of Saudi job seekers applied directly to employers, while 59.4 percent made use of the National Employment Platform, also known as Jadarat. 


WEF launches digital platform focused on clean energy investment in emerging markets

WEF launches digital platform focused on clean energy investment in emerging markets
Updated 09 October 2024
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WEF launches digital platform focused on clean energy investment in emerging markets

WEF launches digital platform focused on clean energy investment in emerging markets
  • Playbook of Solutions outlines 100 policy, finance and de-risking solutions from 47 countries

DUBAI: The World Economic Forum last week launched a digital platform outlining 100 policy measures, finance mechanisms and de-risking solutions in 47 emerging and developing economies.

Known as the Playbook of Solutions, it was assembled by the Network to Mobilize Investment for Clean Energy in the Global South, which was launched at the WEF’s annual meeting in Davos in January.

Emerging markets and developing economies will represent 90 percent of the growth in global energy demand by 2035, according to a report by the International Energy Agency and International Finance Corp.

Yet these countries, which are home to a majority of the world’s population, account for less than a fifth of global clean energy investments, the report said.

In order to speed up the transition to clean energy and triple renewables by 2030, the annual average investment in renewable energy will need to reach at least $1.7 trillion by 2030, it said.

With this in mind, the Playbook of Solutions aims to guide governments, finance institutions and energy companies regarding their approach toward energy transition project financing in emerging markets.

It also highlights the need for a multipronged approach of policy action, de-risking tools and innovative financing mechanisms to unlock the $1.7 trillion needed in the Global South.

“The MENA region has shown remarkable advancements in its energy transition over the past decade,” Roberto Bocca, head of the WEF’s Center for Energy and Materials, told Arab News.

He said that according to the WEF’s latest Energy Transition Index, the region’s energy transition scores had increased by 7 percent overall, “with a substantial 22 percent rise in transition readiness.”

This progress “reflects the importance and efficacy of implementing a comprehensive blend of policies and strategies to unlock clean energy investment” and the new playbook “showcases various tools and measures for achieving this,” he said.

The playbook also highlights the success stories of four countries: Egypt, India, Chile and Brazil and how they raised billions in clean energy capital through a combination of strategies including policy measures and finance platforms.

“Country-led commitment reforms and platforms are critical to align sustainable development efforts in a way that prioritizes national objectives and accelerates progress toward a just, green transition,” said Rania Al-Mashat, minister of planning, economic development and international cooperation of Egypt and co-chair of the Network to Mobilize Investment for Clean Energy in the Global South.

The playbook “provides an effective way to exchange best practices and lessons learned between peer countries, thus unlocking just financing solutions that accelerate progress toward a just energy transition,” she said.


Low carbon concrete solution to land in Saudi Arabia as UK’s Next Generation SCM and Nizak Mining Co. partner

Low carbon concrete solution to land in Saudi Arabia as UK’s Next Generation SCM and Nizak Mining Co. partner
Updated 09 October 2024
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Low carbon concrete solution to land in Saudi Arabia as UK’s Next Generation SCM and Nizak Mining Co. partner

Low carbon concrete solution to land in Saudi Arabia as UK’s Next Generation SCM and Nizak Mining Co. partner
  • Joint venture leverages advanced technology to create a premium SCM using a pioneering process that is highly energy efficient
  • First factory under this venture will be established in Riyadh, targeting the start of production by the third quarter of 2025

RIYADH: The first low-carbon concrete solution is set to land in Saudi Arabia as the UK’s Next Generation SCM and Nizak Mining Co., a subsidiary of City Cement, have formed a joint venture.

Aiming to produce market-sustainable supplementary cementitious materials regionally, the joint venture leverages advanced technology to create a premium SCM using a pioneering process that is highly energy efficient, consuming only one-sixth of the fuel required for conventional cement production. 

This process operates at lower temperatures, significantly reducing operational costs and cutting emissions. 

In its existing plant in Denmark, the technology can produce calcined clay while generating only 8 kg of carbon dioxide per ton — representing a 99 percent reduction compared to the International Energy Agency average of 600 kg per ton for traditional cement.

The first factory under this venture will be established in the capital, Riyadh, targeting the start of production by the third quarter of 2025. It is expected to produce 350,000 tonnes in its initial year, ramping up to 700,000 tonnes in the second year. 

The partnership aims to introduce innovative concrete solutions that significantly reduce carbon emissions, aligning with Saudi Arabia’s Vision 2030 goals for sustainable infrastructure development. 

The Kingdom aims to cut carbon emissions by 278 million tonnes annually by 2030. This target is part of its Vision 2030 and the Saudi Green Initiative, which focus on reducing emissions, increasing renewable energy production and implementing large-scale afforestation projects. 

The production of SCM through this joint venture aims to cut the carbon footprint of concrete significantly. 

While a cubic meter of traditional concrete typically emits 210 kg of CO2, this premium calcined clay SCM can cut emissions by up to 58 percent.

Christian Husum, CEO and founder of Next Generation SCM, emphasized the global impact of the technology. 

“There are over 4 billion people who live in urban areas right now, and that is going to increase by 2 billion over the next 30 years. This is a massive, global building project, which is equivalent to building an additional New York City every month,” he said. 

“There is also no way for our planet to cope with concrete production at that scale unless we find a way of producing it without generating enormous amounts of carbon emissions. Now, there is a way. This joint venture will put the process into practice to bring about a revolution in how we build everything from stadiums to skyscrapers in Saudi Arabia, the Middle East, and then the world,” Husum added. 

The initiative will introduce the patented CemTower technology, developed by Danish firm CemGreen, into the Gulf Cooperation Council market. This technology will expand the region’s capabilities in producing sustainable concrete solutions. 

Traditional SCM alternatives, such as fly ash and slag, are not locally available in Saudi Arabia, making this venture a crucial step for the domestic production of low-carbon materials. 

The joint venture between Next Generation SCM and City Cement is set to be the first in the Kingdom to produce premium calcined clay SCM, offering a strategic advantage for local and regional markets. 

“This joint venture is a significant step in our commitment to the continued growth of Saudi Arabia as a global materials and infrastructure hub. Not only will it support domestic job creation, it will also dramatically improve accessibility to a critical low-carbon material that we will soon be able to export around the region,” Majed Al-Osailan, CEO and board member of City Cement, said. 


Population expansion to drive growth of Saudi Arabia’s private healthcare sector: S&P Global

Population expansion to drive growth of Saudi Arabia’s private healthcare sector: S&P Global
Updated 09 October 2024
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Population expansion to drive growth of Saudi Arabia’s private healthcare sector: S&P Global

Population expansion to drive growth of Saudi Arabia’s private healthcare sector: S&P Global

RIYADH: Saudi Arabia’s private healthcare sector will see strong demand for its services thanks to a growing population and the government’s Vision 2030 program, according to an analysis. 

In its latest report, credit rating agency S&P Global said that the Kingdom should add 30,000 more public and private hospital beds between 2023 and 2030 to meet this rising demand. 

Strengthening the healthcare sector is one of the crucial goals outlined in Saudi Arabia’s Vision 2030 program, as the Kingdom eyes to provide world-class medical services to its population. 

“It’s therefore not surprising that one of the Saudi government’s top priorities is the development of the healthcare sector. As the country accelerates the implementation of its national transformation program, growth opportunities for private healthcare providers are increasing,” said S&P Global.

According to the release, Saudi Arabia’s unique demographic dynamics are expected to play a crucial role in accelerating the growth of the healthcare sector. 

The Kingdom’s national transformation program targets a hospital bed density of 2.7 beds per 1,000 people by 2030. Based on estimated population data, this compares with 2.4 in 2023 and is more in line with the global average. 

“In particular, more than 70 percent of the population is below the age of 40, indicating an aging population in the medium term. This, coupled with higher life expectancy, should increase the demand for healthcare,” added S&P Global. 

The analysis further said that government support will encourage investments, and mandatory insurance will boost demand in the private health sector. 

In March 2021, the Saudi Council of Ministers approved the privatization law to encourage investment in the medical division, and many healthcare providers have announced expansion plans since then, the US-based firm said. 

In its report, S&P Global also outlined some of the major challenges faced by Saudi Arabia in the private medical sector. 

“We expect to see a widening gap in terms of hospital-bed availability between densely populated cities and more remote areas where demographic developments are less favorable,” said the study. 

It added: “This means that private healthcare providers’ profitability will vary depending on the regions they serve. Payor profiles also differ across the sector, and so we expect working capital management to remain key in determining cash flow visibility and capital allocation.” 


 


Closing Bell: Saudi exchange slips 99.84 points to close at 11,927

Closing Bell: Saudi exchange slips 99.84 points to close at 11,927
Updated 09 October 2024
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Closing Bell: Saudi exchange slips 99.84 points to close at 11,927

Closing Bell: Saudi exchange slips 99.84 points to close at 11,927
  • Parallel market Nomu dropped 90.21 points, or 0.37%, to close at 24,453.14
  • MSCI Tadawul Index also decreased by 12.46 points, or 0.83%, to reach 1,496.26

RIYADH: Saudi Arabia’s Tadawul All Share Index decreased on Wednesday, losing 99.84 points, or 0.83 percent, to close at 11,927.33. 

The total trading turnover of the benchmark index was SR7.35 billion ($1.95 billion), with 57 of the listed stocks advancing and 173 declining. 

The Kingdom’s parallel market Nomu dropped 90.21 points, or 0.37 percent, to close at 24,453.14. 

The MSCI Tadawul Index decreased by 12.46 points, or 0.83 percent, to reach 1,496.26. 

The best-performing stock of the day was Fawaz Abdulaziz Alhokair Co., whose share price surged 9.83 percent to SR11.62. 

The second top performer was Herfy Food Services Co., as its share price rose by 9.82 percent to SR27.95. 

Other top gainers include Al-Baha Investment and Development Co. and SEDCO Capital REIT Fund, as their share prices increased by 8.33 percent and 7.50 percent to SR0.39 and SR8.60, respectively. 

The worst performer was United Wire Factories Co., whose share price dropped by 5.13 percent to SR28.65. 

The second biggest loser was Tourism Enterprise Co., with shares decreasing by 4.67 percent to SR1.02. 

Other notable losers included Red Sea International Co. and Arabian Mills for Food Products Co., whose share prices fell by 4.64 percent and 4.56 percent, respectively. 

In the parallel market, Knowledge Tower Trading Co. was the top gainer, with its share price surging by 29.08 percent to SR8.70. 

Al-Modawat Specialized Medical Co. was the major loser in Nomu, as the company’s share price slipped by 7.61 percent to SR13.84. 

Shares of Electrical Industries Co. reached their highest level since debuting on Tadawul at SR7.51 on Oct. 9, closing at SR7.35. 

On the announcement front, global digital trading platform Interactive Brokers revealed a partnership with Al Ahli Capital, Saudi Arabia’s leading investment bank and largest asset manager, to enable qualified international investors to access Tadawul. 

The partnership was launched with a bell-ringing ceremony at Tadawul’s headquarters in Riyadh, attended by Loai Bafaqeeh, head of securities at Al Ahli Capital, and James Brady, senior executive at Interactive Brokers’ Dubai International Financial Center office. 

The strategic partnership will allow international clients to directly trade securities listed on the Saudi financial market via the Interactive Brokers platform, marking the first time a global broker has offered this service. 

Through this collaboration, Interactive Brokers’ clients will be able to invest in Saudi stocks, alongside global equities, options, futures, funds, bonds, and more, through a unified platform. 

“This collaboration reinforces our national role and aligns with our strategic goals to support the objectives of Saudi Vision 2030 and the Financial Sector Development Program,” said Rashed Sharif, the CEO of Al-Ahli Capital. 

He added: “It is a key step in developing an advanced financial market that attracts and empowers a diverse range of investors.” 

Interactive Brokers CEO Milan Galik said: “This collaboration opens new investment opportunities, enabling international investors to trade Saudi stocks. It significantly enhances our global market offerings at a low cost.” 

Saudi Arabia, the largest and most stable economy in the Middle East by gross domestic product, is undergoing significant social and economic transformation driven by Vision 2030. 

The Kingdom continues to make strides toward achieving its goals of a diversified and sustainable economy. 


Saudi Arabia’s tech market size records 12.3% surge in 2023

Saudi Arabia’s tech market size records 12.3% surge in 2023
Updated 09 October 2024
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Saudi Arabia’s tech market size records 12.3% surge in 2023

Saudi Arabia’s tech market size records 12.3% surge in 2023
  • Kingdom aims to boost the technology sector’s contribution to GDP from 1% to 5% by 2030

RIYADH: Saudi Arabia’s digital infrastructure has driven its technology market to a record SR91 billion ($24.2 billion) in 2023, marking a year-on-year increase of 12.3 percent, according to officials.

During the opening of the fourth edition of the Digital Technology Forum in Riyadh on Oct. 9, Raed Al-Fayez, deputy governor for Information Technology and Emerging Technologies at the Communications, Space and Technology Commission, noted a growing interest among technology companies in listing on the Saudi stock market. This trend aligns with CST’s projection that the market could reach SR103 billion by 2025.

Al-Fayez emphasized that under Vision 2030, the Kingdom aims to boost the technology sector’s contribution to GDP from 1 percent to 5 percent by 2030.

“Today, the Kingdom’s market is worth SR91 billion, making it the largest in the region,” he stated. He also pointed out a significant increase in tech companies listed on the Saudi stock market, rising from two in 2020 to 20, which collectively have a market value of SR148 billion.

Al-Fayez also discussed the National Technology Development Program, launched with a budget of SR2.5 billion to support innovation companies.

He highlighted the program’s 18 offerings that assist businesses throughout their investment journeys and its partnerships with 45 entities.

“This underscores the importance of collaboration and integration among organizations,” he said.

In a panel discussion titled “Regulatory Collaboration to Enhance Technology,” Anas Al-Oqalaa, vice governor for Legal and Enforcement at the Zakat, Tax, and Customs Authority, emphasized technology’s significant role in improving taxpayer compliance.

He provided an example of how importers can submit an advance ruling before importing goods, which clarifies the customs duty applicable for the next three years, thereby streamlining what was once a lengthy process.

Al-Oqalaa also highlighted the introduction of electronic invoicing through new legislation, which has greatly improved customer experience. He explained that the electronic invoicing process has two phases: integration and linkage with the authority.

“Today, 90 percent of business owners automatically send their invoices to us, allowing for real-time tracking,” he noted. “In the future, we aspire to preemptively determine tax obligations based on this data, with business owners only needing to confirm or amend information.”

The fourth edition of the forum seeks to explore the potential synergies between government and private entities in the tech sector, focusing on key advancements in technology markets.