Saudi private sector workforce surges 0.5% in July — official figures /node/2563046/business-economy
Saudi private sector workforce surges 0.5% in July — official figures
The rise falls in line with Saudi Arabia’s Vision 2030 goal of increasing the private sector contribution to the Kingdom’s gross domestic product. Shutterstock
Saudi private sector workforce surges 0.5% in July — official figures
Updated 05 August 2024
ARAB NEWS
RIYADH: Private sector employment in Saudi Arabia reached 11.47 million by the end of July, marking a 0.5 percent increase from June, according to a new report.
Figures released by the National Labor Observatory, show the total number of citizens employed in Saudi Arabia’s private sector reached 2.34 million, a monthly rise of 1,206 employees.
Of those nationals working in this division, 1.38 million are males and 956,639 are females.
The increase in the Kingdom’s citizens working in private enterprises signifies the effectiveness of government policies aimed at encouraging local employment and reducing unemployment.
The rise falls in line with Saudi Arabia’s Vision 2030 goal of increasing the private sector contribution to the Kingdom’s gross domestic product by opening up new investment opportunities, encouraging innovation and competition, and removing obstacles preventing growth.
It also aligns well with the vision’s focus on attracting and retaining top talent, including Saudis and expatriates and investing in women’s productive capabilities to enhance their role in the Saudi economy and society. Under recent changes to the Saudization policy, the Kingdom seeks to increase the participation of women in the workforce to 30 percent.
The NLO data also showed that the total number of residents employed in the private sector exceeded 9.13 million individuals in July, comprising over 8.74 million male workers and only 383,499 female employees.
Earlier this week, NLO disclosed that Saudi Arabia achieved the highest growth rates in male and female workforce participation among all G20 countries between 2016 and 2021.
This growth was attributed to the country’s dynamic labor market, driven by economic expansion, a youthful population, and initiatives aimed at boosting female participation in the workforce.
Saudi Arabia’s economic diversification efforts have transformed the Kingdom into a hub for employment opportunities, propelled by bold giga-projects such as NEOM, which attract fresh talent into the construction sector.
NLO, a governmental organization, is tasked with monitoring and analyzing the country’s labor market trends and dynamics. It serves as a crucial resource for policymakers, researchers, and stakeholders interested in understanding and addressing issues related to employment, workforce development, and labor market regulations.
Experts call for enhanced incentives to boost EV adoption
Updated 11 sec ago
Sulfa Alkhunaizi
RIYADH: The Saudi government holds the key to developing the necessary infrastructure for electric vehicles, a top official said on the first day of the EV Auto Show underway in Riyadh.
Speaking at a panel discussion titled “Charging Ahead: Building the Backbone of Saudi Arabia’s EV Revolution,” Mansour Al-Makahlas, head of the eMobility division at Solutions Valley, a part of Saudi Electric Co., outlined the essential steps needed to advance the market.
Al-Makahlas stressed the importance of expanding charging infrastructure to encourage participation from chief product officers.
“In order to attract users to come to Saudi (Arabia) or to buy this vehicle, they need to release the incentive. They need to build more charging stations; they need to support the CPO to get into this market.”
He continued:, “There must be an incentive from the government, such as the case in Europe and the US. CPOs know that the return on investment is long-term. It’s not short-term. So an incentive must be there.”
During the same discussion, Alhareth Al-Hisan, founder and CEO of iCharge, noted that Saudi Arabia has a strong foundation for EV adoption globally. “It has the grid capacity, it has the political will, and it has the ability for the customer to spend on the expensive electric vehicle.”
Al-Hisan pointed out that planning is a primary concern in the regional EV industry and suggested that Saudi Arabia could benefit from Europe’s approach to infrastructure development. “When the infrastructure for electric vehicles started in Europe, it was heavily planned and very detailed where to place them, how to place them,” he said.
Wolfgang Ademmer, chief marketing officer at the sustainable mobility firm Alpitronic, also encouraged Saudi Arabia to follow Europe’s lead. “There’s a learning from Europe for other markets. I’m always a big fan of shortcutting learning curves, and we can do this in Saudi Arabia.”
Ademmer emphasized the need for a comprehensive plan to support industry participants and ensure their success in the EV sector. “Coming up with a clear plan, giving confidence to all market players, including those inherently starting the business right now. Encourage them to stay and invest with the right guidelines, and then also convince, subsequently, the users, the car drivers, to use and to drive EVs.”
Li Bo, vice president of Huawei Digital Power Strategy and Marketing for the Middle East and Central Asia, and director of Huawei EV Charging Business for the same region, predicted a rise in the vehicle-to-EV charging ratio.
Li noted that renewable energy development is advancing in Saudi Arabia and expects that new regulations will lead to a greater focus on renewable sources and storage solutions for EV charging stations.
Toward the end of the panel discussion, Al-Makahlas predicted significant growth in the EV market. “So, I believe that the market will double by next year. You will be shocked by next year; I can guarantee you.”
The EV Auto Show in Riyadh underscores Saudi Arabia’s Vision 2030, highlighting its commitment to electric vehicles and sustainable technology. The exhibition serves as a key event for the Kingdom’s burgeoning EV ecosystem, attracting 10,000 attendees from 50 countries, including industry leaders, automotive manufacturers, charging solution providers, and policymakers, to discuss the future of mobility in the region.
PIF-backed Lucid to export Saudi-made EVs regionally, globally, official reveals
Updated 19 min 45 sec ago
MANAL AL-BARAKATI Reem Walid
RIYADH: US electric carmaker Lucid Motors plans to export a significant share of its vehicles produced in Saudi Arabia to both regional and global markets, according to a senior official.
At the EV Auto Show in Riyadh, Ali Rizvi, director of Business Operations at Lucid Middle East, revealed that the company—supported by Saudi Arabia’s Public Investment Fund—is increasing its production efforts within the Kingdom.
This initiative supports Saudi Arabia’s ambition to convert 30 percent of Riyadh’s vehicles to electric by 2030. This goal is part of a larger strategy to reduce emissions in the capital by 50 percent, contributing to the country’s broader aim of achieving carbon neutrality by 2060.
“We are producing vehicles in the Kingdom, (and) a large part of those will be exported within the region and to the rest of the world as well,” Rizvi said.
At the same panel, Mohammed Abuazzah, chief public relations officer at Saudi EV brand Ceer, discussed the company’s strategy. “We have a portfolio — a Saudi-inspired portfolio — that is innovative, inspirational, and can answer what the people of Saudi Arabia and the Gulf Cooperation Council, and hopefully globally, expect from an EV,” Abuazzah said.
He emphasized the importance of engaging with customers and expanding the company’s sales network in Saudi Arabia and the GCC.
Ulf Schulte, chief operating officer at Electric Vehicle Infrastructure Co., announced plans to expand the company’s charging network. “So, there are a lot of building blocks we are working on, and eventually now ramping up the number of sites. Our first site in Jeddah is going live today or tomorrow,” Schulte said.
“Our focus this year is on Riyadh, Jeddah, and Dammam, but we’re working to build a Kingdom-wide network to enable a long-distance EV ecosystem,” he added.
Andreas Flourou, group head of mobility at Red Sea Global, outlined the company’s commitment to sustainability. “We’re opening new hotels every quarter at the moment, and mobility is one of the foundations of our ethos based around sustainability and protecting the environment,” Flourou said.
“We’re opening a new hotel, Amaala, by the end of next year. This will mean hundreds of additional vehicles, guest vehicles, staff transportation, buses, sea planes, and marine vessels. We need an increase in chargers within our destinations,” he added.
Gary Flom, CEO of National Transport Solutions Co., emphasized the role of EVs in transforming Saudi Arabia’s infrastructure.
“Today, we are witnessing a revolution, a revolution that is driving toward a future where electric vehicles are not merely an option but a cornerstone of our nation’s transportation infrastructure,” Flom said.
“The rise of Saudi Arabia’s electric vehicle sector reflects a broader shift toward sustainability, innovation, and resilience. This transformation, catalyzed by the visionary leadership of His Royal Highness, Crown Prince Mohammed bin Salman, is positioning the Kingdom at the forefront of the global transition to clean energy,” the CEO added.
He added that National Transportation Solutions Co. is proud to be a key player in the ongoing transformation, which began three years ago. “NTSC was born with a clear and ambitious mission to provide Saudi fleet operators with the same or better tools, data, and operational efficiencies long enjoyed by their colleagues in the US and Europe.”
Also present in a separate session at the event, Omaimah Bamasag, deputy of transport enablement at the Transportation General Authority, highlighted that the event showcases the collaboration between the public and private sectors in advancing new technology skills, aligning with the goals of Vision 2030 and the National Strategy.
Hosted at the Riyadh International Convention and Exhibition Center from Sept. 17 to 19, this three-day event highlights Saudi Arabia’s commitment to EVs and sustainable technology, in line with Vision 2030.
The exhibition is a key event for the Kingdom’s growing EV ecosystem, gathering automotive manufacturers, charging solution providers, policymakers, and consumers to discuss the future of mobility in the region.
Attendees will explore various EVs, charging solutions, and green technologies. The event will feature interactive seminars and panel discussions, offering opportunities to engage with industry experts and innovators.
EV Auto Show 2024: Industry leaders forecast a bright future for electric vehicles in Saudi Arabia
Updated 17 September 2024
Miguel Hadchity Hajar AlQusayer
RIYADH: The EV Auto Show, held at the Riyadh International Convention and Exhibition Center, has gathered industry experts to discuss the future of electric vehicles in Saudi Arabia and the broader Middle East.
This year’s event, running from Sept. 17 to 19, is expected to reshape the Kingdom’s mobility landscape as it aligns with Saudi Vision 2030, a plan aimed at diversifying the economy and promoting sustainability.
The three-day gathering has drawn key stakeholders, including automakers, charging solution providers, and policymakers, all keen to share insights on the transformation of the regional EV market.
Battery electric vehicles gaining traction in the Kingdom
Group Head of Mobility at Red Sea Global, Heiko Seitz, was one of several panelists at the event who highlighted the favorable conditions for EV adoption.
“In Saudi Arabia, the Middle East, we have more favorable temperatures for battery electricity than we do up there in the Nordics in Europe,” said Seitz.
He underscored that these climate advantages and technological advancements are key factors driving the region’s shift to electric mobility.
Seitz elaborated on the market dynamics, saying: “We have more or less approached cost parity, which basically means, in simple terms, it is now almost equally affordable to drive an EV with the comparable car models compared to an internal combustion car in Saudi. In the UAE, the car prices are slightly lower, so they have already passed the tipping point.”
Seitz expected prices to drop further as more models and brands enter the market, leading to greater EV adoption across the Middle East.
He predicted a dramatic shift in the composition of the global car market over the next decade, saying: “Seven years from now, the mix in the world available will be that 30 percent of all vehicles will be battery electric. So lots of change there, and that will change the cost profile in the Kingdom and the Middle East in general.”
A greener future powered by renewables
Renewable energy is also playing a critical role in the Kingdom’s EV strategy. “There is more and more renewable energy, especially solar energy, coming into the mix here in Saudi Arabia,” said Seitz.
He expressed optimism that the country’s efforts to integrate solar power would advance the greening of its mobility sector. “This is one of the countries in the Middle East where it’s safe to say mobility will not only be electrified, it will also be green in the future,” he added.
Group Head of Mobility at Red Sea Global, Heiko Seitz. AN
Seitz also shared impressive forecasts for EV sales in Saudi Arabia, predicting that by 2030, 64 percent of all new cars sold in the Kingdom will be fully battery electric, driven by local and international brands eager to compete in the region’s rapidly growing market.
Challenges and opportunities in EV manufacturing
The panel discussion also highlighted EV production progress within Saudi Arabia. Oswaldo Dorantes, manager of automotive at the National Industrial Development Center, emphasized the growing presence of manufacturers in the Kingdom.
“We already have some manufacturers in Saudi making multiple manufacturing schemes like CKD (completely knocked down) and SKD (semi-knocked down) commercial vehicles and commercial trucks for medium and heavy-duty purposes,” Dorantes said.
He highlighted various government and private sector initiatives to develop local talent and support the broader EV ecosystem, underlining that programs like the National Automotive and Vehicle Academy or Nava are playing a key role in this strategy.
However, scale remains a critical challenge in attracting suppliers. “When we look at the development of the ecosystem, the first priority is going to be scale. How can we justify bringing in one supplier if we don’t have enough scale?” Dorantes asked.
He emphasized the importance of government support in overcoming this barrier, adding: “It doesn’t matter if you can bring the most reliable technology if you’re not competitive enough.
“This is something we look at from multiple perspectives, and that’s why the government needs to support it in the beginning.”
Advancements in battery technology
On the technical side, Julia Palle, vice president of sustainability at Formula E, spoke about the durability and efficiency of EV powertrains.
“The technology of the batteries and the powertrain in an electric vehicle is basically one of the most durable systems that you have,” Palle said, adding that EVs transform 85 percent of their energy into movement, compared to traditional cars, which only convert up to 25 percent.
Palle’s insights aligned with those of Klaus Wawra, managing director at Hofer Powertrain, who discussed the technology crossover between EVs and hybrids.
“With a hybrid vehicle, you will still need an electric motor, you need an inverter, an onboard charger, and a direct current fast charging converter. So, more or less, all the technologies you have to cover inside the EV, you can then scale dedicatedly to this hybrid application,” Wawra explained.
A panel discussion on the unique advantages of EV technology. AN
Consumer demand on the rise
The need for electric and hybrid vehicles is steadily increasing in Saudi Arabia. Hasan Nergiz, managing director at Al-Futtaim Electric Mobility Co., shared data indicating the growing popularity of hybrids in the market.
“Right now, if I look at our last month’s order take, around 75 percent of Saudi customers are opting into hybrids,” Nergiz said. This statistic reflects the broader trend toward sustainable mobility solutions in the Kingdom.
JEDDAH: Top technology and business leaders will explore the impact of artificial intelligence, data analytics, cybersecurity, and digital payments at the 5th Annual Future Banks Summit & Awards KSA.
Taking place on Sept. 24-25 at the InterContinental Hotel in Riyadh, the event will bring together over 200 local and regional leaders from banks and financial institutions.
The summit is designed to drive innovation, foster collaboration, and shape the future of Saudi Arabia’s financial industry. It will address key topics such as intelligent automation and cloud migration, preparing the Saudi banking sector for future challenges.
This initiative supports Saudi Vision 2030, which aims to modernize the banking sector, diversify the economy, attract foreign investment, and enhance regulatory frameworks, with the ultimate goal of establishing the Kingdom as a global leader in banking.
Sonny Supriyadi, chief data analytics officer at Maybank, emphasized the importance of discussing current issues to support the banking industry and drive economic growth in Saudi Arabia.
“Conferences provide a platform for industry experts to share insights, discuss emerging trends, and learn from best practices. This exchange of knowledge is crucial for banks to remain competitive and adapt to changing market conditions,” said Supriyadi, who will be among the event’s key speakers.
He added that fostering dialogue among industry leaders, regulators, and policymakers at conferences can help develop effective policies that support the banking industry and stimulate economic growth.
“Saudi Arabia should be able to maintain a stable and conducive regulatory environment that fosters innovation, competition, and customer protection,” Supriyadi concluded.
At the event, experts will tackle several critical topics, including the influence of Saudi Vision 2030 on the banking sector and the evolution of core banking systems to address future demands.
The summit will also delve into emerging trends such as open banking, super apps, and hyper-personalization. Discussions will explore how these innovations are transforming customer expectations and elevating the overall banking experience.
Ma’aden acquires SABIC’s 21% shareholding in Bahrain’s Alba
Updated 17 September 2024
Nirmal Narayanan
RIYADH: Saudi Arabian Mining Co. has signed an agreement to acquire Saudi Basic Industries Corp.’s 20.62 percent shareholding in Aluminium Bahrain, or Alba, as it continues to pursue regional growth opportunities.
According to a press statement, the sale proceeds are expected to be within a range of SR3.62 billion ($960 million) and SR3.97 billion.
The decision to acquire SABIC’s share comes just a day after the mining firm, also known as Ma’aden, signed a non-binding agreement with Alba to potentially create a global aluminum producer.
The deal outlines plans to merge the Saudi firm’s aluminum operations with Alba’s.
In the statement, the Ma’aden added that the transaction is indicative of its ambitions to expand tenfold by 2040, with its aluminum business a core contributing factor to that strategy.
“As we continue in our growth journey, the acquisition of shares in a highly experienced, well-developed regional and global aluminum player firmly supports our ambitions,” said Bob Wilt, CEO of Ma’aden.
He added: “This week we have announced a number of transactions that align with our strategic intent to strengthen and expand our business both regionally and internationally, further building mining as the third pillar of the Saudi economy.”
In the statement, SABIC further said that the transaction will enable the company to optimize its portfolio, focus on its core business, and further strengthen its growth in the chemicals industry.
“We value our fruitful partnership with Alba over the years, which has contributed significantly to SABIC’s growth,” said Abdulrahman Al-Fageeh, CEO of SABIC.
He added: “Once this transaction is finalized, we will be better positioned to reinforce our strategy to become the preferred world leader in chemicals and support the successful realization of Saudi Vision 2030.”
The chemical manufacturing company added that the transaction will also contribute to improved returns and the reallocation of capital to opportunities with higher margins.
SABIC further said that the completion of this transaction is conditional upon obtaining all regulatory approvals from relevant authorities in Saudi Arabia and Bahrain.
