Saudi unemployment rate falls to 3.3% in Q2 as job market strengthens: GASTAT
Saudi unemployment rate falls to 3.3% in Q2 as job market strengthens: GASTAT/node/2573319/business-economy
Saudi unemployment rate falls to 3.3% in Q2 as job market strengthens: GASTAT
According to data from the General Authority for Statistics, the unemployment rate also declined by 0.8 percentage points compared to the same period last year. Shutterstock
Saudi unemployment rate falls to 3.3% in Q2 as job market strengthens: GASTAT
Updated 30 September 2024
Nirmal Narayanan
RIYADH: Saudi Arabia’s overall unemployment rate fell to 3.3 percent in the second quarter of 2024, a 0.2 percentage point drop compared to the previous quarter, official data showed.
According to data from the General Authority for Statistics, the unemployment rate also declined by 0.8 percentage points compared to the same period last year.
The jobless rate among Saudi nationals fell to 7.1 percent, a quarterly drop of 0.5 percentage points and an annual decline of 1.4 percentage points.
The decrease aligns with the Kingdom’s Vision 2030, which aims to enhance job opportunities for Saudis and stimulate economic expansion. The improvement in labor market indicators is expected to support long-term socio-economic development.
In June, Saudi Arabia launched Jadarat, a unified employment platform designed to connect job seekers with positions in the public and private sectors, part of broader efforts to tackle unemployment.
Labor force participation among Saudis slipped by 0.6 percentage points in the second quarter to 50.8 percent, though it edged up 0.1 percentage points from the same period a year earlier.
“The employment-to-population ratio for Saudis declined by 0.3 percentage points compared to the first quarter of 2024, standing at 47.2 percent, while it increased by 0.8 percentage points annually compared to the second quarter of 2023,” stated GASTAT.
Saudi female unemployment saw a sharp quarterly decline of 1.4 percentage points, landing at 12.8 percent. The employment-to-population ratio for women slipped by 0.1 percentage points to 30.8 percent.
For men, the employment-to-population ratio remained steady at 63.6 percent, while labor force participation edged down by 0.1 percentage points to 66.3 percent.
The GASTAT survey revealed that 95.5 percent of jobless Saudis are willing to take up roles in the private sector, with 81.9 percent of unemployed Saudi women and 93.8 percent of men open to working eight or more hours a day.
The decline in unemployment underscores Saudi Arabia's progress in reshaping its labor market. As the Kingdom continues to focus on economic diversification, these positive trends signal the potential for stronger workforce participation and broader opportunities for its citizens moving forward.
COP29 Day 2: World leaders gather in Baku for UN climate conference
Updated 13 sec ago
Arab News
RIYADH: Dozens of world leaders convene in Azerbaijan on Tuesday for COP29 as the UN Secretary-General warned of the clock ticking for action to limit global temperature rises.
Speaking at the gathering in Baku Antonio Guterres said the world is in the “final countdown” to limit global temperature rise to 1.5 degrees Celsius.
He added that 2024 is “almost certain” to be the hottest year on record.
His comments came as leading figures from governments around the world arrived for the summit, although many top politicians are not attending this year’s summit.
US President Joe Biden, China’s Xi Jinping, India’s Narendra Modi and French leader Emmanuel Macron are among G20 leaders missing the event.
The top priority at COP29 is landing a hard-fought deal to boost funding for climate action in developing countries.
An announcement away from the speeches as Saudi Arabia’s Regional Voluntary Carbon Market Co. today launches its voluntary carbon market exchange platform, bringing 22 domestic and international companies on board on its first day of trading.
The launch of the platform is a major milestone in Saudi Arabia’s ambition to become one of the largest voluntary carbon markets in the world by 2030. It aims to scale up the supply and demand of high-quality carbon credits across the Global South and beyond, driving funding to climate projects that require finance, supporting the transition to global net zero emissions.
Speaking in Baku, Riham El-Gizy, RVCMC’s CEO said: “The message coming into COP is clear: To accelerate global decarbonization we must unlock financial flows to critical climate projects on an enormous scale. High integrity voluntary carbon markets can play an important role in bridging the climate finance gap this decade. But institutional grade infrastructure must be put in place to help buyers and sellers scale up private sector participation and achieve the market’s potential.”
RVCMC was established by the Public Investment Fund and Saudi Tadawul Group Holding Co. in October 2022. PIF holds an 80 percent stake and Tadawul Group holds a 20 percent stake in the company.
Oil Updates – crude slips on China stimulus concerns, oversupply outlook
Updated 12 November 2024
Reuters
BEIJING: Oil prices eased on Tuesday as investor disappointment over China’s latest stimulus plan and oversupply concerns weighed on the market, along with a stronger dollar.
Brent crude futures fell 17 cents, or 0.2 percent, to $71.66 a barrel, by 8:50 a.m. Saudi time. US West Texas Intermediate crude futures were at $67.84 a barrel, down 20 cents or 0.3 percent.
Both contracts had fallen by more than 5 percent over the previous two trading sessions.
China unveiled a 10-trillion-yuan ($1.4 trillion) debt package on Friday to ease local government financing strains, as the world’s biggest oil importer faces fresh pressure from the re-election of Donald Trump as US president.
But analysts said it fell short of the amount of stimulus that would be needed to boost growth.
While crude oil prices extended losses on a stronger US dollar, concerns also emerged over demand in China, ANZ Research analysts said in a note.
“Data released over the weekend showed anaemic consumer inflation in October and another decline in factory gate prices,” they said.
The market is now looking ahead to the release of monthly oil market reports from OPEC, the International Energy Agency and the Energy Information Administration, the analysts added.
“Any further downgrades on demand, particularly from OPEC, could weigh on sentiment.”
The OPEC monthly report is set to be released later on Tuesday.
The market will be looking out for further downward revisions in demand from the group’s outlook through 2025, which would add to downward pressure on prices.
“We think OPEC+ will be forced to keep delaying the decision to roll back their voluntary cuts. This decision will still result in surplus pressures building,” said Vivek Dhar, an analyst with Commonwealth Bank of Australia.
“The key risk to our outlook is that OPEC+ look to unwind their voluntary supply cuts from January, thereby exacerbating oversupply pressures,” he added.
“Any hint that OPEC+ are opting to defend market share over targeting higher oil prices has the potential to see oil prices tumble.”
The US dollar held around four-month highs on Tuesday, as it is expected to benefit from policies that are likely to keep US interest rates relatively higher for longer.
Markets are also bracing for further signals from US inflation data and Federal Reserve speakers this week.
A stronger dollar makes commodities denominated in the US currency, such as oil, more expensive for holders of other currencies, and tends to weigh on prices.
UrbanV joins forces with Cluster2 to revolutionize air mobility in Saudi Arabia
Updated 11 November 2024
Nour El-Shaeri
RIYADH: Saudi airports under Cluster2’s management will soon begin feasibility studies to explore the implementation of advanced air mobility solutions.
This initiative is part of a new partnership with UrbanV, an Italian vertiport operator.
The two sides have signed a memorandum of understanding aimed at developing both advanced air mobility and urban air mobility services within Saudi Arabia.
The agreement, signed by Ali Masrahi, CEO of Cluster2, and Carlo Tursi, CEO of UrbanV, focuses on creating an integrated ecosystem for AAM across Cluster2’s network of airports.
Beyond feasibility studies, the partnership will establish a framework for the design, development, and management of AAM and UAM solutions. This will ensure compliance with regulations set by the Kingdom’s General Authority of Civil Aviation, as well as safety standards and environmental sustainability goals.
UrbanV will contribute its expertise in AAM operations, providing technical training, knowledge transfer, and collaboration with key stakeholders.
As part of the collaboration, pilot programs will be launched to test electric vertical take-off and landing services in areas such as medical emergencies, VIP transport, and logistics. These trials will allow the partners to assess the operational feasibility of AAM in real-world conditions.
The companies have committed to supporting Saudi Arabia’s Vision 2030, including the use of zero-emission eVTOL vehicles and the development of environmentally sustainable vertiports.
“We are pleased to sign this partnership,” said Masrahi. “Through such collaborations, we aim to lead the way in creating advanced air mobility solutions and building an integrated ecosystem for airports across the Kingdom, while ensuring environmental sustainability at all our facilities.”
Tursi shared a similar sentiment, stating, “At UrbanV, we aim to improve people’s lives by enabling a fast, efficient, safe, and clean alternative for short-distance transport solutions for both people and goods by air. We are ambitious to become a global leader in operating vertiport networks and pioneering some of the world’s first AAM routes. We are excited to partner with Cluster2, a key player in airport management, and look forward to exploring the vast potential of introducing advanced air mobility in Saudi Arabia.”
Cluster2’s strategic objectives include increasing annual passenger traffic, expanding airport capacity, connecting Asia, Europe, and Africa via Saudi Arabia, and increasing the number of international routes in the Kingdom.
The company currently manages 22 airports across Saudi Arabia, including AlUla International, King Abdullah bin Abdulaziz Airport in Jazan, and King Saud bin Abdulaziz Airport in Al-Bahah.
ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif met Saudi Investment Minister Khalid Al-Falih in Riyadh on Monday to discuss the progress of recently signed business agreements between the two countries, according to the Prime Minister’s Office.
On Oct. 10, Pakistani and Saudi businesses signed 27 memorandums of understanding worth $2.2 billion during Al-Falih’s visit to Islamabad. Later, during Sharif’s visit to Saudi Arabia on Oct. 30, Al-Falih announced that the number of agreements would be increased from 27 to 34, and the total value would rise to $2.8 billion.
Sharif is in Riyadh to attend the Arab-Islamic Summit. On the sidelines of the summit, he also met with Mohammed Al-Tuwaijri, the royal court’s adviser.
According to the Prime Minister’s Office, the meeting focused on reviewing the progress of economic cooperation initiatives between the two countries. Sharif praised the ongoing efforts of Pakistani and Saudi technical teams working on these major projects.
The meeting comes as Pakistan seeks to strengthen trade and investment ties with its allies, particularly Saudi Arabia. The Kingdom has pledged a $5 billion investment package, which is crucial for Pakistan as it grapples with a dire balance of payments crisis and dwindling foreign reserves.
To tackle its economic challenges, Pakistan established the Special Investment Facilitation Council in 2023. This hybrid civil-military body aims to expedite foreign investments in key sectors like agriculture, mining, tourism, and minerals.
Sharif has been actively engaging in economic diplomacy in recent months, seeking increased investments and fostering trade and regional connectivity. Pakistan is positioning itself as a key trade and transit hub linking Central Asia with the global market, while also seeking mutually beneficial partnerships with Gulf countries.
Cityscape Global 2024 to pave the way for innovation in real estate, minister says
Updated 11 November 2024
REEM WALID
RIYADH: Cityscape Global 2024 is expected to drive innovation and sustainable advancements within Saudi Arabia’s real estate market, broadening growth opportunities, according to a top official.
The opening day of the event, which is taking place in Riyadh from Nov. 11 – 14, saw the Saudi Minister of Municipalities and Housing, Majid bin Abdullah Al-Hogail, explain that the Kingdom is working to develop the sector further to achieve the nation’s ambitions.
This comes as Saudi Arabia’s real estate is a vital element of the country’s economy, contributing around 7 percent of gross domestic product and supporting numerous additional sectors.
“The Kingdom’s hosting of the Cityscape Global for the second time is an affirmation of the Kingdom’s position, which has become a leading model in the field of innovation and real estate development and a global center that leaves a clear imprint in building the cities of the future,” Al-Hogail said.
“Today, we are not only hosting a real estate event, but we are opening the doors to new horizons of innovation and sustainable advancement to achieve the future of our ambitious country under the slogan ‘The Future of Life,’” he added.
Saudi Minister of Municipalities and Housing Majid bin Abdullah Al-Hogail speaking at the event. X/@CSGlobalKSA
The minister went on to say that the number of local developers at the exhibition has doubled to more than 100, and the total of high-level real estate firms participating is up from from 54 to 69.
“Of course, this increase comes in light of the accelerating growth witnessed by the sector since the beginning of this year,” he added.
Al-Hogail further highlighted that this growth has brought about a rise in real estate deals, the value of which has exceeded SR630 billion ($167 billion) since the beginning of the year, making this sector one of the most important economic engines contributing to the development of the economy.
“All these efforts aim to accelerate the development of real estate refinancing market programs in the Kingdom and expand through local and international capital market channels so that we can ensure the continued growth of this sector, which I undoubtedly expect to reach more than SR1.3 trillion, for the housing sector alone, in 2030,” he said.
Toward the conclusion of his speech, the minister also underlined that the total value of launches and strategic agreements in Cityscape Global 2024 exceeds SR180 billion.
In terms of announcements, Saudi National Housing Co. launched a new identity and strategy, which CEO Mohammad Saleh Al-Buty said included a “major expansion in pioneering projects.”
He added: “Today, from this place, I am pleased to inform investors about investment opportunities for the year 2025 with a value exceeding SR75 billion in residential projects and others.”
Saud-based Retal Urban Development Co. also announced major projects for 2024.
“In the name of ambition and achievement, and out of our keenness to achieve and realize hopes, Retal announces a group of projects for the year 2024 worth more than SR14 billion,” the firm’s CEO Abdullah Al-Braikan said.
Retal Urban Development Co. CEO Abdullah Al-Braikan. X/@CSGlobalKSA
Moving on to Diriyah Development Co., the developer announced the launch of 59 new luxury apartments and villas for the Signature Collection of The Ritz-Carlton Residences, Diriyah, marking the latest release of its luxury branded residences.
This launch follows the successful sell-out of the initial 106 Ritz Carlton Residences.
Diriyah Development Co. also launched the first luxury residential group, “Raffles Residences Diriyah”, affiliated with Raffles Hotels and Resorts, during its participation in the Cityscape Global exhibition in Riyadh, as part of the company’s continued provision of high-quality living standards with international standards in Diriyah.
The new residence will offer 90 luxury residences, ranging from one, two and three-bedroom suites to duplex villas and townhouses, with residents enjoying full access to the hotel’s world-class facilities.
During the announcement, Mohamed Saad – from the firm’s DevCo. division – introduced a new collection featuring 59 fully furnished apartments and villas, available in one- to four-bedroom configurations.
Mohammad Al Habib Real Estate Co. also announced a new development during the event, which will be located in Riyadh, while founder and Chairman of Mountain View Amr Soliman also shed light on his firm’s first project to date in the Kingdom.
“Mountain View One”, situated in the north of Riyadh, will have an investment value of $320 million, with 500 villas.
Mohammad Al-Othman, CEO of Kaden, used the event to announce the Jeddah Front project which spans 1 million sq. meters and involves total investments of up to SR10 billion.
“The waterfront will feature 5,000 residential units, housing approximately 20,000 residents. It also includes recreational spaces covering 140,000 sq. meters and a business sector area reaching 138,000 sq. meters,” Al-Othman said, adding that there will also be around 800,000 hotel units.
CEO of Tilal Real Estate Co. Abdulrahman Al-Bassam, who also spoke during the event, tackled the “Heart of Khobar” project, which is set to be valued at above SR6 billion upon completion of its phases.
“On this occasion, we are pleased to announce the signing of the operational agreement for the project with 25Hours from the Accor Group. This project will be the second of its kind after Trojena in NEOM,” Al-Bassam said.
Co-founder of Flow Adam Neumann also disclosed the company’s first local real estate fund worth SR1.1 billion, with Sico and Safa as partners.
