Qatar issues new law to localize private sector jobs

Qatar issues new law to localize private sector jobs
According to the statistics aggregator Spectator Index, the unemployment rate in Qatar is the lowest in the world at 0.1 percent. Shutterstock
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Updated 02 September 2024
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Qatar issues new law to localize private sector jobs

Qatar issues new law to localize private sector jobs
  • Law aims to to enhance the attractiveness of the labor market to the national workforce
  • It is expected to address several challenges that have previously hindered nationalization efforts

RIYADH: Qatar has issued a new law to nationalize private sector employment and ensure job security for its nationals, the Qatar News Agency reported. 

Issued on Sept. 1 by the Emir of Qatar, Sheikh Tamim bin Hamad, the legislation aims to provide a stable work environment for Qataris. It mandates the issuance of standard employment contract templates for job nationalization, which will be binding on entities subject to the law’s provisions.

The ruling aligns with the country’s National Vision 2030 goal of creating opportunities for employment and training for Qatari citizens. 

The law also supports the nation’s Third National Development Strategy, which aims to turn the country into a more productive labor market, focusing on high-skilled jobs. 

The strategy focuses on transitioning the country into the next stage of expansion through economic diversification, by creating an investment and business-friendly environment, and including more Qataris in the private sector workforce. 

The law’s primary objective is to enhance the attractiveness of the labor market to the national workforce, QNA said, citing Qatar’s Ministry of Labor.

It also seeks to increase companies’ ability to attract and integrate citizens, encourage Qatari participation in the private sector, and develop professional skills to meet the demands of the market. 

The law is expected to address several challenges that have previously hindered nationalization efforts, establishing the conditions and procedures necessary to make the private sector more attractive to Qatari nationals. 

According to the ministry, the entities subject to nationalization under the law include employers who are managing private establishments registered in Qatar’s commercial register, commercial companies operating in the state, and private non-profit organizations, sports institutions, and associations. 

The Labor Ministry said that it will also develop a job nationalization plan for the private sector by classifying companies based on size, workforce, and job types. 

The law empowers the ministry to provide incentives, facilities, and privileges, along with sponsoring citizens to complete their university studies to prepare them for roles in the private sector. 

The new decree will be effective six months after it is published in the country’s official gazette.

According to the statistics aggregator Spectator Index, the unemployment rate in Qatar is the lowest in the world at 0.1 percent. 

The country’s total unemployment rate has gradually fallen over the past three decades, dropping from 0.81 percent in 1991 to 0.17 percent in 2021. 


Oil Updates – prices little changed as demand worries offset Mideast fears

Oil Updates – prices little changed as demand worries offset Mideast fears
Updated 24 sec ago
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Oil Updates – prices little changed as demand worries offset Mideast fears

Oil Updates – prices little changed as demand worries offset Mideast fears

SINGAPORE: Oil prices were little changed on Tuesday as stronger supply prospects and tepid global demand growth outweighed worries that escalating tensions in the Middle East could impact output from the key exporting region.

Brent crude futures for December delivery edged up 13 cents, or 0.18 percent, to $71.83 a barrel as of 9:15 a.m. Saudi time. US West Texas Intermediate crude futures for November delivery gained 14 cents, or 0.21 percent, to $68.31.

On Monday, Brent futures ended September down 9 percent, the third month of declines and largest monthly drop since November 2022. It slumped 17 percent in the third quarter for its biggest quarterly loss in a year. WTI fell 7 percent last month and dropped 16 percent for the quarter.

“There have been a lot of reservations in place for oil prices, as market participants look toward upcoming supply additions from OPEC+ by the end of this year, alongside a still-soft demand outlook from China reflected in the country’s latest PMI numbers,” said Yeap Jun Rong, market strategist at IG.

“That said, sentiments have been less sensitive to the weaker data, finding room to stabilize on the hopes that recent raft of stimulus may help to jumpstart the economy ahead,” said Yeap.

China’s manufacturing activity shrank sharply in September as new orders at home and abroad cooled, pulling down factory owners’ confidence to near record lows, a private-sector survey showed on Monday.

Analysts say a slew of stimulus measures over the last week are likely to be enough to bring China’s 2024 growth back to about 5 percent after below-forecast data in the past several months cast doubts over that target, but will hardly change the long-term outlook.

Alongside the demand concerns, OPEC+, which groups OPEC members and allies such as Russia, is scheduled to raise output by 180,000 barrels per day in December.

Israel’s widely expected ground invasion of Lebanon appeared to be getting underway early on Tuesday as its military said troops had begun “limited” raids against Hezbollah targets in the border area.

However, supply fears seem relatively contained for now, with market participants still pricing out the risks of a wider regional conflict, said IG’s Yeap.

The attacks follow Israel’s killing on Friday of Hezbollah head Hassan Nasrallah, and represent an escalating conflict in the Middle East between Israel and Iran-backed militants that now threatens to suck in the US and Iran.

In the US, crude oil and fuel stockpiles were expected to have fallen by about 2.1 million barrels in the week to Sept. 27, a preliminary Reuters poll showed on Monday.

The poll was conducted ahead of a report from the American Petroleum Institute industry group due at 11:30 p.m. Saudi time on Tuesday. 


Dubai summit unveils strategic partnerships to drive growth in Mideast’s hospitality sector

Dubai summit unveils strategic partnerships to drive growth in Mideast’s hospitality sector
Updated 30 September 2024
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Dubai summit unveils strategic partnerships to drive growth in Mideast’s hospitality sector

Dubai summit unveils strategic partnerships to drive growth in Mideast’s hospitality sector

DUBAI: The first day of the Future Hospitality Summit in Dubai saw the signing of several agreements, underscoring ongoing growth and innovation within the Middle East’s hospitality sector.

During the event, Saudi Arabia’s Mohammed Abdullah Al Muhanna Hotels Ltd. revealed a collaboration with Marriott International to launch the Four Points by Sheraton Jeddah, with Aleph Hospitality set to manage the property. This new hotel is expected to enhance Jeddah’s evolving hospitality landscape upon its opening in 2025.

In another major development, Accor entered a partnership with Summary Executive Properties to create Swissotel Residences Waterfront, the brand’s first standalone residential project worldwide.

Scheduled for completion in 2027 on Dubai Islands, this luxurious development will feature 105 residences, including apartments and penthouses, all boasting stunning views of the Dubai skyline.

Dmitry Kryuchkov, founder of Summary Executive Properties, commented: “The partnership with Accor Group reflects our shared vision of establishing a luxurious residential community that exemplifies the highest standards of design, luxury living, and tailored services for homeowners.”

The project will be supported by Accor One Living, a platform dedicated to mixed-use developments and community living, further enhancing Accor’s footprint in the region, where it currently manages 282 properties and has an additional 112 in the pipeline.

Skyline University College also announced several agreements aimed at strengthening the region’s hospitality, real estate, and tourism sectors.

A collaboration with HAMA MEA aims to launch initiatives beneficial to both organizations and the broader industry.

A memorandum of understanding was established with the UAE Restaurants Group, representing over 2,000 outlets, to foster growth in hospitality, food and beverage, and community engagement.

With a strong focus on education and skill development, Skyline University College is poised to make significant contributions through these partnerships.

The FHS, taking place from Sept. 30 to Oct. 2, brings together over 1,500 industry leaders and features more than 110 speakers.

Under the theme “Invest in Our Future,” the summit addresses crucial issues shaping the global hospitality landscape, emphasizing innovation, sustainability, technology, and investment opportunities.

This year’s agenda includes over 40 sessions spread across 20 conference tracks on four dedicated stages: Summit, Future, Exhibition, and Innovation. Topics will cover environmental, social, and governance issues, sustainable development, human capital, real estate, technology, branding, and culture.


Saudi Arabia projects $315.73bn revenue for FY2025 amid fiscal reforms

Saudi Arabia projects $315.73bn revenue for FY2025 amid fiscal reforms
Updated 30 September 2024
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Saudi Arabia projects $315.73bn revenue for FY2025 amid fiscal reforms

Saudi Arabia projects $315.73bn revenue for FY2025 amid fiscal reforms

RIYADH: Saudi Arabia’s Ministry of Finance has released its pre-budget statement for fiscal year 2025, projecting total revenues to reach approximately SR1.18 trillion ($315.73 billion), marking a 4 percent decrease from previous forecasts.

These estimates are based on a baseline scenario positioned between low and high and developed to address the challenges and geopolitical risks impacting the global economy.

The ministry emphasized that this strategy allows the government to maintain a flexible fiscal framework.

Preliminary estimates for total expenditures are set at SR1.28 trillion, resulting in a projected budget deficit of SR101 billion, which is 38 percent higher than the previous estimates.

This deficit, equivalent to 2.3 percent of gross domestic product, is considered expected and is anticipated to persist over the medium term due to ongoing expansionary spending policies.

Commenting on the outlook, Finance Minister Mohammed Al-Jaadan said: “The pre-budget statement for the fiscal year 2025 confirms that Saudi Arabia’s government will continue to focus its spending on essential services for citizens and residents, as well as on the execution of strategic projects to enhance economic growth and achieve sustainable development.”

The ministry also released revised estimates for FY 2024, indicating revenues of SR1.24 trillion, a 6 percent increase from previous forecasts.

Expenditures are projected to reach SR1.35 trillion, reflecting an 8 percent rise, resulting in a deficit of SR118 billion primarily due to increased spending.

The FY 2025 budget aligns with Saudi Vision 2030 by advancing fiscal and economic reforms. The government aims to balance its strong fiscal position, financial reserves, and low public debt while improving spending efficiency and prioritization.

Key focuses include accelerating projects that promote sustainable economic growth and adjusting others to stabilize and diversify the economy. The budget prioritizes enhancements in social services, social protection, and regulatory reforms.

Additionally, it emphasizes transformative spending, utilizing sovereign funds, and empowering the private and non-profit sectors. Significant initiatives under Vision 2030 are aimed at developing promising sectors, attracting investment, stimulating local industries, and expanding non-oil exports.

Noteworthy progress has been made in boosting tourism and entertainment, bolstered by the Public Investment Fund and national development funds, which are driving robust and sustainable growth in non-oil sectors and positioning the Kingdom for long-term economic resilience.

To support stability and balance in oil markets, Saudi Arabia and OPEC+ have implemented a reduction in oil supplies, bringing the Kingdom’s average production from the beginning of FY2024 until the end of July to 8.96 million barrels per day.

According to the ministry, OPEC+ countries have established a new production agreement for FY 2025, effective from January to December.

Several member nations, including Saudi Arabia, Russia, and the UAE, have agreed to extend voluntary production cuts. This includes a reduction of 1.65 million bpd, initially announced in April 2023 and now extended until December 2025, as well as an additional cut of 2.2 million bpd extended until November 2024.

The ministry noted that these reduced quantities will be gradually restored on a monthly basis until November 2025, with adjustments made according to market conditions to ensure stability.

The real GDP is expected to grow by 0.8 percent in 2024, supported by a projected growth of approximately 3.7 percent in non-oil activities, according to the official data.

Private consumption increased by 2.4 percent in the first half of 2024, fueled by growth in wholesale and retail trade, as well as restaurants and hotels. The facilitation of visit visa procedures and the expansion of eligible categories have also boosted visitor numbers to entertainment, cultural events, and tourist destinations.

The average consumer price index rose by 1.6 percent from the beginning of 2024 to August, compared to the same period last year. Preliminary forecasts suggest the consumer price index will reach approximately 1.7 percent for the entire year.

The Kingdom has maintained acceptable inflation levels relative to global standards, owing to ongoing improvements in economic conditions and proactive government measures to control rising prices, including price ceilings for gasoline and enhancements in food supply.

Financing plans

Saudi Arabia’s robust fiscal position, characterized by strong financial reserves and manageable public debt, enables the Kingdom to effectively navigate potential economic shocks and secure financing across the short, medium, and long term.

The Ministry of Finance, through the National Debt Management Center, develops an annual borrowing plan aimed at ensuring debt sustainability, diversifying financing sources, and accessing global markets. This strategy aligns with Saudi Vision 2030, promoting growth in the financial sector and deepening the domestic debt market.

The Kingdom is expanding its financing channels through bonds, sukuk, and loans, while also working to enhance its sovereign credit rating.

According to the ministry, controlled debt growth supports expansionary spending necessary to achieve Vision 2030 objectives, ensuring fiscal sustainability and resilience against future challenges.

Fitch Ratings reaffirmed Saudi Arabia’s A+ rating with a stable outlook, while Moody’s maintained its A1 rating with a positive outlook. Additionally, S&P Global Ratings upheld its A rating for the Kingdom, upgrading its outlook from stable to positive.

These ratings reflect the country’s ongoing economic transformation, driven by structural reforms and fiscal policies that prioritize sustainability and efficient financial planning.


Saudi Arabia set to unveil new tourist destinations in 2025: ASFAR CEO

Saudi Arabia set to unveil new tourist destinations in 2025: ASFAR CEO
Updated 30 September 2024
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Saudi Arabia set to unveil new tourist destinations in 2025: ASFAR CEO

Saudi Arabia set to unveil new tourist destinations in 2025: ASFAR CEO

DUBAI: The Public Investment Fund subsidiary ASFAR is set to launch new tourist attractions by early next year, reinforcing its commitment to economic growth and diversification, according to CEO Fahad bin Mushayt.

In an interview with Arab News during the Future Hospitality Summit in Dubai, Bin Mushayt said that the latest destination will debut in Al-Baha by the beginning of next year.

ASFAR, which has been operational for nearly two years, is collaborating with investors to enhance the Kingdom’s tourism sector by focusing on eight key destinations aligned with the Ministry of Tourism’s strategy.

While ASFAR does not directly develop these projects, it leverages its robust investment strategies and tourism expertise to partner with other companies, creating new opportunities in the sector. Among its projects are locations in Hail, Al-Baha, Yanbu, Al Hasa, Taif, and Al Jouf.

“Since we started, we are now active in five destinations,” the CEO stated.

In Al-Baha, ASFAR is developing two resorts, with a soft opening anticipated in the first quarter of 2025.

He said the company is “building almost 150 keys across two distinct locations, each offering unique experiences.” The top executive said one “caters to parents and couples, while the other targets the youth with an adventure park combined with hospitality.”

Describing Al-Baha as a “beautiful destination atop the mountains, known for its greenery and mild climate averaging around 20 degrees year-round.”

Bin Mushayt also highlighted plans for Taif, located two hours from Al-Baha, focusing on religious tourism due to its proximity to Makkah.

“We’re targeting religious tourism by building a wellness resort, allowing visitors to reaffirm their spiritual needs while enjoying the local scenery and mountains, just 30 to 40 minutes from Makkah,” he elaborated.

In Yanbu, a coastal city on the Red Sea about two hours from Jeddah, additional developments include a lifestyle hotel, beach club, beach resort, and tourism center featuring food and beverage options, retail, a diving academy, and marine activities. “Yanbu is known as one of the best diving areas in the world,” Bin Mushayt noted.

Further projects are also underway in Al Hasa and Hail, scheduled to open in 2025 and 2026.

Tourism is a key component of Saudi Arabia’s Vision 2030, aimed at diversifying the economy beyond oil revenues.

Bin Mushayt highlighted the sector's growth, stating, “Tourism is currently growing at nearly double-digit rates, contributing significantly to the GDP.”

ASFAR’s initiatives also aim to create jobs and stimulate the overall economy, with aspirations of generating around 250,000 jobs in the tourism sector by 2030.

The company is also investing in transportation, casual dining, and the development of destination management and tour operator companies to enhance visitor experiences.

Bin Mushayt emphasized the importance of local content and community involvement in these projects. “We prioritize using local materials and supporting small and medium enterprises within the destinations,” he said.

He further noted that “many family-oriented products and services will also be offered,” driving economic activity and development through tourism.

Expressing enthusiasm for Saudi Arabia’s goal of attracting 150 million annual visitors, he stated that ASFAR aims to welcome at least 5 million visitors to its destinations.


Millennium Hotels and Resorts eyes expansion across Saudi Arabia

Millennium Hotels and Resorts eyes expansion across Saudi Arabia
Updated 40 min 22 sec ago
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Millennium Hotels and Resorts eyes expansion across Saudi Arabia

Millennium Hotels and Resorts eyes expansion across Saudi Arabia

DUBAI: Millennium Hotels and Resorts is actively negotiating with multiple owners to expand its presence in Saudi Arabia, with plans to enter Riyadh soon and explore opportunities in other key cities beyond the major ones.

In an interview with Arab News at the Future Hospitality Summit in Dubai, COO William Harley-Fleming expressed the company’s intent to diversify its portfolio by tapping into the resort market, targeting key destinations and landmark projects across the Kingdom and the broader Middle East.

“We’re in discussions with several owners to explore how we can add value in regions of the Saudi market. As you know, Saudi Arabia is not just about Riyadh and Jeddah,” Harley-Fleming stated. “We’d like to get something in Riyadh, and we hopefully will have something there very soon, but we are also looking at other key cities within the Kingdom, which are just as important as the capitals.” 

Currently, Millennium operates a Grand Millennium hotel in Saudi Arabia but plans to introduce more of its 11 other brands, particularly its lifestyle-oriented social brand. “I think the Kingdom itself has been flooded with opportunities, but for us, it’s about having the right brand, with the right owners in the right locations. That’s why we believe the social brand is due for more than just midscale brands. We see opportunities now to develop that in some of the key locations,” he noted.

Harley-Fleming also announced plans for a new Copthorne hotel in Jeddah, set to open next year, which will be their second property in the city following the Millennium Hotel launched this year. The company is also in talks to introduce additional brands in Jeddah and expand to other areas.

“The development plan and growth plans are important to us, and we want to be part of that. I think the F&B scene is something that has really improved a lot within the Saudi market, and I think this is really a close collaboration with the tourism authorities and the government of Saudi (Arabia),” he said.

He revealed ongoing discussions with the government to expand into key locations that are considered secondary but are still attractive, such as Tabuk, Jazan, and Hail — regions outside of major cities that are seeing substantial development and interest.

“We’ve seen a big influx of not only consultants to the area but also people who want to experience Saudi Arabia itself. That’s why we want to see more of these remote locations, as we believe there’s so much more to offer in the Kingdom,” Harley-Fleming emphasized.

He added: “It’s not just about beaches and deserts; there’s so much more to offer. That's what we want to do — the cultural and heritage side. That’s where I think definitely a brand like ours ties in well because we work closely with the owners to make sure that anybody visiting their hotels also gets that element of localization.”

Millennium Hotels also supports the Saudization program, which promotes employing local talent, reinforcing its commitment to the country’s social and economic goals. Harley-Fleming noted plans to hire more Saudis to enhance the authentic Saudi experience for visitors.

As the Kingdom opens up to international tourism, the company aims to immerse guests in Saudi culture through language, local traditions, and cuisine. For instance, they plan to offer local honey and dates from nearby farmers in hotel lobbies.

Harley-Fleming underscored that localization is part of a broader sustainability initiative, which includes supporting local businesses and integrating cultural elements into the guest experience.