Saudi jobs boom unmatched anywhere in the world, Budget Forum told

Saudi jobs boom unmatched anywhere in the world, Budget Forum told
A special press conference was held to mark the announcement of Saudi Arabia’s 2024 budget.
Short Url
Updated 07 December 2023
Follow

Saudi jobs boom unmatched anywhere in the world, Budget Forum told

Saudi jobs boom unmatched anywhere in the world, Budget Forum told

RIYADH: Some 1.1 million new jobs have been created in Saudi Arabia in the past year as the Kingdom’s economic diversification policies continue to bear fruit, according to a government minister.

At a special forum organized in Riyadh to mark the announcement of Saudi Arabia’s 2024 budget, Minister of Human Resources Ahmad Al-Rajhi said no other nation in the world had seen such an increase over the period.

He also said that initiatives by the government to support the private sector have led to 361,000 new workers in the job market. 

The press conference came a day after Saudi Arabia approved the state budget for 2024, with revenues projected at SR1.17 trillion ($312.48 billion) and expenditure at SR1.25 trillion, leading to a deficit of SR79 billion. 

In its announcement, the Finance Ministry projected the Kingdom’s gross domestic product growth at 4.4 percent in 2024 an increase from the estimated 0.03 percent in 2023. 

It predicted the Kingdom’s public debt for the next fiscal year to stand at SR1.10 trillion, or 25.9 percent of GDP. This represents a 7.71 percent increase from the re-estimated 2023 figures of SR1.02 trillion, constituting 24.8 percent of the GDP.

Fiscal reserves

Speaking at the forum, Finance Minister Mohammed Al-Jadaan emphasized Saudi Arabia’s need for adequate fiscal reserves at the Saudi Central Bank, also known as SAMA, to absorb external shocks.

The minister underscored the need to avoid competing with the private sector for funding. He also highlighted all sectoral and regional strategies and projects to optimize funding and execution for maximum economic return.

He said that spending efficiency means optimal resource use for the highest return, not just reducing expenditure.

Al-Jadaan told the forum that the Efficiency of Expenditure Authority, along with government authorities, saved nearly SR225 billion.

Conducive environment

Minister of Economy and Planning Faisal Al-Ibrahim said Vision 2030 has created a conducive environment and pushing the Kingdom toward its goal of economic diversification. 

National capabilities have now become a long-term priority, he added.

The minister said the Kingdom is dedicated to achieving optimal economic diversification. He told the forum that the Saudi trade balance had improved due to increased service exports rising from SR65 billion in 2016 to SR135 billion today.

Highlighting the non-oil economic growth of the Kingdom since 2016, Al-Ibrahim said the contribution of non-oil revenues to covering costs increased from 19 percent to 35 percent.

The minister said the reliance of government spending on the oil sector has now decreased to 50 percent. 

The government’s investments in sectors, including electric vehicles and others, present great opportunities for the private sector, he added.

Moreover, unemployment rates are consistently declining, with a notable participation of women in the labor market, currently ranging between 35 percent and 36 percent.

Housing sector
Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail said that the ministry has been working to increase the homeownership rate by 1 percent annually since 2020, by adding more than 100,000 residential units every year.

He said this is being done in partnership with the private sector players.

The minister said more than 105,000 housing units will be offered with the help from local developers, especially in areas witnessing high prices, such as Riyadh and Jeddah, through multiple suburbs.

Furthermore, the ministry aims to have developers from outside the Kingdom to diversify and focus on residential suburbs more than housing, said Al-Hogail.

He highlighted that the housing targets, as per Vision 2030, were planned to go through three stages, while ensuring that there is a sustainable program that does not depend solely on government spending.

The ministry focused this year on raising the quality of services in cities.

It also aims to privatize 70 percent of the municipal sector in coordination with the National Center for Privatization & PPP. The ministry privatized 19 percent of this sector in 2023 and aims to privatize 30 percent of services next year.

Logistics

Saudi Arabia added 27 new shipping lines in 2023, leading to faster arrival of goods, higher revenues, and improved shipping rates, Minister of Transport and Logistics Saleh Al-Jasser told the forum.

He said there are eight new logistics zones in Jeddah Port with investments of global major shipping lines, operators of container terminals, and major international companies specialized in the field of logistics services.

Of these, three zones are open, and five are under construction. 

Education
More than 90 educational service projects became operational in 2023, while 707 schools Kingdom-wide were rehabilitated in cooperation with the Ministry of Finance, Education Minister Yousef Al-Benyan said.

Mining sector

Minister of Industry and Mineral Resources Bandar Alkhorayef emphasized his ministry’s focus on increasing the discovery of natural resources. 

He highlighted the positive impact of these efforts, stating: “We are beginning to see that this system is already considered one of the best investment regulations globally.”

Water security

Minister of Environment, Water and Agriculture Abdulrahman Al-Fadley outlined the Kingdom’s plans for water demand until 2050. He said: “We produce 11 million cubic meters of desalinated water, and within two years, this number will jump to 14 million cubic meters, reaching 18 million cubic meters by 2030.”

Al-Fadley also highlighted environmental initiatives at the forum. “We’ve initiated 65 projects in the environmental sector, with a planned investment of SR55 billion, ensuring they yield financial returns.”

He highlighted the ambitious goal of elevating waste recycling from 4 percent to an impressive 95 percent, contributing about SR120 billion to Saudi Arabia’s GDP.

Healthcare

Health Minister Fahd Al-Jalajel provided insights into the sector's transformation, stating: “In the past, we were the ministry of sickness, not the ministry of health. Today, we have switched our focus to the patient.” 

Al-Jalajel emphasized the success of the salt reduction policy in lowering the mortality rate from chronic diseases.


Developing nations push for action on COP29 financing shortfalls

Developing nations push for action on COP29 financing shortfalls
Updated 19 November 2024
Follow

Developing nations push for action on COP29 financing shortfalls

Developing nations push for action on COP29 financing shortfalls

RIYADH: Developed nations are facing growing pressure at COP29 to honor their climate finance commitments, as developing countries push for action to address the severe shortfalls in adaptation funding and the escalating environmental challenges they face.

The ongoing dispute centers around how much support developed nations will provide to poorer countries in their efforts to combat the impacts of climate change.

Representatives from vulnerable nations have emphasized the urgent need for concrete financial commitments, highlighting the widening gaps in adaptation funding.

Financing gaps undermine efforts

Kenya called for an end to the adaptation finance gap, urging increased financial flows to meet the continent’s needs. “Developing countries are not receiving the resources they need,” said Kenya’s representative. “Africa’s adaptation needs are the highest globally, estimated at $845 billion between 2020 and 2035, yet we receive less than a quarter of that annually.”

Bangladesh echoed these concerns, revealing a stark $5.5 billion annual shortfall in funding for resilience projects. “This gap must be filled through grant-based and external finance,” said Bangladesh’s representative.

Several developed nations have outlined their efforts to scale up adaptation financing. Germany highlighted that 30 percent of the EU’s current seven-year budget is allocated to climate-related initiatives, including $30 billion for nationally determined contributions and climate goals, and $12 billion for public climate adaptation finance.

France pledged €2 billion annually by 2025 for adaptation in developing countries, exceeding its previous commitments. Canada reported progress toward its goal of doubling adaptation finance by 2025, as per the Glasgow Climate Pact, but acknowledged the need for more expansive action. “Public finance alone won’t suffice,” said Canada’s representative. “We need coordinated global efforts, innovative instruments, and stronger policy signals to ramp up climate-resilient investments,” the representative continued.

UAE calls for scaling up adaptation finance

“The outcome of the first global stocktake under the UAE consensus underscores a stark reality: we are not on track to meet the adaptation needs of developing countries,” said the UAE’s representative. “Climate change disproportionately affects vulnerable communities who have contributed the least to global emissions. Adaptation is not a choice, but a necessity,” he continued.

The UAE underscored the widening adaptation finance gap, which is estimated to reach hundreds of billions of dollars annually by 2030.

“A critical component of COP28 was the UAE framework for global climate resilience, establishing targets for adaptation planning and implementation,” the representative noted. The UAE consensus calls for all parties to have national adaptation plans in place by 2025, with tangible progress on implementation by 2030.

“We urge developed countries to significantly scale up adaptation finance beyond the doubling committed at COP26,” the UAE added.

“This scaling up is crucial to meet the urgent and growing needs of developing countries.”

Rejecting allegations of involvement in the Sudanese conflict, the UAE reaffirmed its commitment to humanitarian aid and efforts to support a legitimate, civilian-led government in Sudan.

“We reject these baseless claims and emphasize our continued support for de-escalation, ceasefires, and aiding Sudanese civilians,” said the representative.

Jordan called for “predictable and transparent commitments” and expedited disbursements, emphasizing the challenges faced by water-scarce nations grappling with severe droughts.

Sudan urged for technological transfer and funding to recover from devastating floods, which caused $48 million in damages this year. Palestine raised concerns about barriers to accessing climate funds, citing “non-technical issues” that prevent direct support despite eligibility.

Kazakhstan stressed the importance of concessional financing, saying, “We need mechanisms that are accessible and predictable to address vulnerabilities and ensure funds flow directly to communities.”

Developing countries call for urgent action

“Adaptation is not a choice but a necessity,” reiterated the UAE representative, highlighting the disproportionate burden borne by vulnerable nations.

Qatar called for creative solutions to close the adaptation finance gap, urging developed countries to double financial support and focus on the implementation phases to maximize impact.

China demanded that developed countries clarify timelines for doubling adaptation financing, stating, “They must deliver on their commitments and prioritize vulnerable nations.”

As COP29 unfolds, the debate over adaptation financing underscores the urgent need to bridge the gap between pledges and tangible action. The world’s most vulnerable communities are watching closely, demanding that words translate into real solutions.


GAMI showcases achievements at maritime forum in Dhahran

GAMI showcases achievements at maritime forum in Dhahran
Updated 19 November 2024
Follow

GAMI showcases achievements at maritime forum in Dhahran

GAMI showcases achievements at maritime forum in Dhahran

RIYADH: Saudi Arabia’s General Authority for Military Industries highlighted its achievements in local military ship and boat manufacturing, as well as maintenance capabilities, at the 3rd International Saudi Maritime Forum.

In a press statement, GAMI noted that its pavilion also showcased specialized expertise in hull construction and system integration. Established in 2017, GAMI is tasked with regulating, monitoring, enabling, and licensing the Kingdom's military and security industries.

As part of its mission to strengthen the defense sector, GAMI aims to support the growth of Saudi Arabia's military industries and contribute to the country's economic development. The authority also plays a key role in achieving Saudi Vision 2030 by aiming to localize more than 50 percent of government defense spending by 2030.

The GAMI pavilion, inaugurated by Abdullah bin Abdulaziz Al-Hammad, GAMI’s deputy governor for strategic planning and execution, was presented to over 55 national and international organizations from 22 countries, including military specialists and academics from both Saudi Arabia and abroad.

The 3rd Saudi International Maritime Forum, organized by the Royal Saudi Naval Forces, kicked off on Nov. 19 in Dhahran and will run through Nov. 21.

The forum is focusing on key developments in regional and international maritime security, while also highlighting the latest technologies, equipment, and maritime systems at both local and global levels.

 


Saudi Arabia pledges support in combating global financial crimes

Saudi Arabia pledges support in combating global financial crimes
Updated 19 November 2024
Follow

Saudi Arabia pledges support in combating global financial crimes

Saudi Arabia pledges support in combating global financial crimes

RIYADH: The global fight against money laundering, terrorism financing, and the proliferation of arms remains a pressing issue, as Saudi Arabia’s central bank governor emphasized the need for international collaboration to address these challenges.

Ayman Al-Sayari, governor of the Saudi Central Bank, reiterated the Kingdom’s commitment to advancing these efforts, stating, “We affirm Saudi Arabia’s keenness to unify joint regional efforts in combating money laundering, financing terrorism and the proliferation of arms, and overcoming the challenges facing all countries.”

His comments came during the conference on “The Latest Developments in Combating Money Laundering, Financing Terrorism, and the Proliferation of Arms,” held on the sidelines of the 39th General Meeting of the Middle East and North Africa Financial Action Task Force in Riyadh.

Marking the 20th anniversary of MENAFATF’s establishment, Al-Sayari highlighted its role in raising awareness and supporting regional adherence to international standards. “Today we celebrate the 20th anniversary of the establishment of the MENAFATF group, which has contributed to raising awareness, deepening understanding of international requirements at the regional level, and helping relevant authorities enhance their commitment to these requirements,” he said.

Al-Sayari also praised Saudi Arabia’s domestic initiatives aimed at strengthening compliance and combating financial crimes.

“We commend the efforts of the relevant authorities in Saudi Arabia through standing committees to enhance efforts and raise commitment to international requirements,” he added.

According to a UN report, an estimated 2 to 5 percent of global gross domestic product—equivalent to $800 billion to $2 trillion—is laundered each year. However, the clandestine nature of money laundering makes it difficult to determine the exact volume of illicit funds in circulation.

Acknowledging the evolving nature of financial crimes, Al-Sayari emphasized the need for proactive legislative and regulatory measures. “In light of the rapid development of money laundering, terrorism financing, and arms proliferation methods, countries must strengthen their legislative and regulatory frameworks to keep pace with these fast-evolving challenges,” he said.

Al-Sayari also affirmed Saudi Arabia’s alignment with the Financial Action Task Force under Mexico’s presidency, reinforcing the Kingdom’s support for global efforts to combat illicit financial flows. “Saudi Arabia participates actively in the FATF’s discussions to ensure that cross-border transfers are more efficient, transparent, and comprehensive without compromising due diligence obligations and measures,” he added.

Elisa Madrazo, president of the FATF, also addressed the conference, highlighting the importance of coordinated global efforts to combat financial crimes. Her remarks underscored FATF’s ongoing commitment to fostering collaboration among member countries and ensuring adherence to international standards.

During the conference, Al-Sayari met with Madrazo to discuss recent developments and shared interests in anti-money laundering efforts, combating terrorist financing, and addressing the financing of arms proliferation.


Aramco signs agreement to advance SASREF expansion

Aramco signs agreement to advance SASREF expansion
Updated 19 November 2024
Follow

Aramco signs agreement to advance SASREF expansion

Aramco signs agreement to advance SASREF expansion

RIYADH: Energy giant Saudi Aramco and China-based Rongsheng Petrochemical Co. have signed a framework agreement to boost the expansion of a subsidiary of the state-owned oil company.

According to a press statement, the tripartite agreement outlines a cooperation framework and detailed plans to design and develop Saudi Aramco Jubail Refinery Co. or SASREF. The initiative is expected to enhance SASREF’s refining and petrochemical capabilities.

The deal follows an announcement made in April that Aramco and Rongsheng Petrochemical had signed a partnership agreement related to the planned formation of a joint venture in SASREF. 

Aramco’s long-standing relationship with China spans more than three decades.

This new framework agreement is part of the company’s broader strategy to solidify its position in the global energy landscape while supporting the Kingdom’s economic growth.

“By aligning our efforts, Aramco and Rongsheng Petrochemical aim to deliver additional value to our stakeholders,” said Aramco Downstream President Mohammed Al-Qahtani.

He added: “This development framework agreement underscores Aramco’s intentions to foster closer collaboration with key partners and progressing its strategic downstream expansion, both in Saudi Arabia and internationally. It also highlights the potential of the Kingdom’s downstream sector to attract overseas players.”

Li Shuirong, chairman of Rongsheng Petrochemical, said that the collaborative project will contribute to Saudi Arabia’s Vision 2030 program and China’s Belt and Road initiative. 

“The signing of the development framework agreement sets the stage for Rongsheng Petrochemical’s in-depth participation in the SASREF expansion project,” said Shuirong. 

He added: “Saudi Arabia has abundant energy resources and significant market potential, and Rongsheng Petrochemical will bring strong momentum to the partnership through our excellent operation and management capabilities and market competitiveness.” 

The SASREF expansion project is located in Jubail Industrial City along the Arabian Gulf coast in the Kingdom’s Eastern Province. 

The project, which is currently in the pre-front-end engineering design stage, envisages the construction of large-scale steam crackers and the integration of associated downstream derivatives into the existing SASREF complex, enhancing its ability to meet the growing demand for high-quality petrochemical products, the statement added. 

Earlier in November, Aramco, in partnership with China Petrochemical & Chemical Corp. and Fujian Petrochemical Co., started the construction of a refinery and petrochemical complex in the Asian nation’s Fujian province. 

The undertaking, which is expected to be fully operational by the end of 2030, includes an oil refinery with a capacity of 320,000 barrels per day, according to a press statement.

It will also have a 1.5 million tonnes-per-year ethylene unit, a 2 million tonnes paraxylene and downstream derivatives capacity, and a 300,000 tonnes crude oil terminal.


COP29: Azerbaijan unveils Baku Harmoniya Climate Initiative

COP29: Azerbaijan unveils Baku Harmoniya Climate Initiative
Updated 19 November 2024
Follow

COP29: Azerbaijan unveils Baku Harmoniya Climate Initiative

COP29: Azerbaijan unveils Baku Harmoniya Climate Initiative

RIYADH: Azerbaijan has launched the Baku Harmoniya Climate Initiative, a program designed to help farmers combat global warming while ensuring food security.  

The initiative, which prioritizes knowledge sharing and climate finance solutions, was announced during a press conference by Azerbaijan’s Minister of Agriculture, Majnun Mammadov, at COP29. 

This effort aligns with Azerbaijan’s revised Nationally Determined Contributions, which pledge a 40 percent reduction in emissions by 2050, conditional on international support. The energy sector, responsible for over half of the country’s greenhouse gas emissions, remains a focal point of Azerbaijan’s climate strategy.   

“I am proud to officially announce the launch of the Baku Harmonia Climate Initiative for farmers. It is an inclusive platform designed particularly for women and youth, and aims to strengthen global collaboration,” Mammadov said. 

He highlighted that the initiative will focus on promoting technology investments, sustainable practices, and crop diversification. 

“Harmonia focuses on sharing knowledge, facilitating climate finance, and addressing the unique challenges farmers face,” he added.  

Mammadov emphasized the importance of enhancing farmers’ participation, advancing research and innovation, improving water management systems, and implementing subsidy programs to encourage sustainability. 

Also speaking during the conference, COP29 Lead Negotiator Yalchin Rafiyev underlined the initiative’s significance, noting the momentum gained from international cooperation.  

“We have been encouraged by the positive signals from the G20 to our ongoing efforts,” Rafiyev said. However, he stressed that current climate finance levels remain insufficient and require scaling up.  

As a significant producer of fossil fuels, Azerbaijan’s hosting of COP29, like last year’s host, the UAE, signifies a shift toward sustainable climate policies.  

COP29 President Mukhtar Babayev recently told Arab News that hosting the conference reflects his country’s commitment to driving change.