RIYADH: The ongoing economic transformation in the Kingdom is already bearing fruit in the business sector according to a new study by the US-based consulting firm Korn Ferry.
The Korn Ferry 2018 Salary and Benefits Study claims that Saudi Arabia’s economic transformation strategy has led to impressive business results which are translating into measurable salary and bonus increases for employees at all levels, with high performers reaping the greatest benefit — landing bonuses of up to 120 percent more than the average.
Harish Bhatia, regional director of Korn Ferry, told Arab News, “We see a positive shift in Saudi Arabia where more organizations are recognizing and differentiating high performers by paying them significantly higher bonuses.”
He warned, however, that, there is “more to achieve by ensuring a limited bonus pool is used carefully to reward only average or higher-than-expected performances. Many organizations are still paying bonuses to poor performers, and we believe this is not the best use of the funds available to drive business performance.
“In mature global markets, this trend is more noticeable, with limited bonus pools strictly being paid out to employees who are making a difference to the organization’s top line and bottom line. This is even more critical for senior managers and executives,” Bhatia continued.
Korn Ferry’s study captured data from 437 organizations across 20 economic sectors in the Kingdom and included more than 420,000 employees.
Data showed average salary increases of 2.6 percent across all sectors, with financial services employees realizing average increases of 3.7 percent.
The introduction of cost-of-living allowances for Saudi nationals and increased expat levy fees could potentially have a negative impact on employee compensation costs, Bhatia suggested, but he stressed that “the ability for companies to support consistent salary growth across several sectors speaks to strong overall positive economic performance.”
It is the bonus data, according to Bhatia, that sends the strongest signals about changing business practices in the modern Saudi economy.
High-performing executives received a bonus equivalent to more than six months salary. That is 120 percent more than the average bonus pay out, clearly distinguishing for performance and sending a strong message that great performance will be richly rewarded.
“At the senior-executive level, we are starting to see a shift in reward schemes where companies are identifying and paying increased bonuses to high performers who are driving business results. That kind of variable approach to compensation sends a message that companies are moving from a long-term fixed-cost model to one that is more closely aligned with measurable performance and impact,” said Bhatia.
“The good news is that overall economic performance was strong across most organizations that we surveyed; more employees received bonuses compared to the previous year,” he said.
The challenge organizations have is finding a balance between managing the pressure of rising fixed costs and allocating funds to a bonus pool that is used to drive performance. One measure of finding this balance is to stop offering a bonus to low-performers, Bhatia pointed out.
The study also suggests that the Kingdom’s nationalization initiative continues to be a success. In the retail sector for example, employment of Saudi nationals increased from 21 percent to more than 35 percent as companies prepared for new Labor Ministry regulations on expat employment in key sectors that came into effect this month.
Saudi Arabia’s economic transformation benefiting business, says study
Saudi Arabia’s economic transformation benefiting business, says study
- The introduction of cost-of-living allowances for Saudi nationals and increased expat levy fees could potentially have a negative impact on employee compensation costs
- The good news is that overall economic performance was strong across most organizations that we surveyed
Saudi official elected vice chair of organization that sets standards for global food trade
- Saudi Food and Drug Authority says selection of Khalid Al-Zahrani by Codex Alimentarius Commission is a ‘milestone’ and ‘testament to our commitment to global food safety
- Al-Zahrani has represented the Kingdom on several international committees, including at the World Trade Organization
RIYADH: Saudi official Khalid Al-Zahrani was chosen on Wednesday to be vice chair of the Codex Alimentarius Commission, which sets the standards for the international food trade that are designed to ensure products are safe and protect consumer health.
Representatives of the Saudi Food and Drug Authority who were present for the vote at the commission’s 47th annual session in Geneva, Switzerland, congratulated Al-Zahrani on his election.
“This is a significant milestone for Saudi Arabia and a testament to our commitment to global food safety and standards,” said Hisham Aljadhey, the authority’s CEO.
“By assuming the role of vice chair of Codex, (Saudi Arabia) aims to further strengthen international collaboration, promote sustainable food practices and ensure the well-being of consumers worldwide.”
Al-Zahrani has served as the Codex chairperson for the Near East region since 2020 and was reelected to the position in 2023.
He also represented Saudi Arabia on several international committees, including the World Trade Organization’s Technical Barriers to Trade, the Gulf Cooperation Council Standardization Organization, and the International Organization for Standardization’s Food Products Committee.
He works closely with the Kingdom’s Food and Drug Authority, which aims to prioritize sustainability and enhance efficiency, inclusiveness and transparency within food systems. The authority was recognized in January by the World Health Organization as one of the first five countries in the world to eliminate the use of industrially produced trans fats in food, alongside Denmark, Lithuania, Poland and Thailand.
“Al-Zahrani’s election highlights the exceptional quality of Saudi staff at the SFDA and the authority's efforts in food-safety legislation and oversight,” the authority said.
The Codex Alimentarius (Latin for “Food Code”) is a collection of internationally recognized standards, codes of practice, guidelines and other recommendations related to food production, labeling and safety, published by the UN’s Food and Agriculture Organization and the WHO.
Saudi development fund chief meets Congo’s finance minister
CEO of the Saudi Fund for Development Sultan Al-Marshad met Congo’s Minister of Finance Doudou Fumba Likunde, the Saudi Fund said on X on Wednesday.
During the meeting, they reviewed development cooperation between the two sides that began 40 years ago, as well as discussing ways to enhance economic cooperation to develop vital sectors in Congo.
Ambassador of Saudi Arabia to Congo Abdulaziz Al-Badi was present during the meeting.
Saudi Arabia halves desalination costs, boosts efficiency by 80%, official says
- Technological advancements have played a critical role in the Kingdom’s water conservation efforts
RIYADH: Saudi Arabia has improved its desalination efficiency by 80 percent and halved costs by 50 percent in recent years, a top official from the Kingdom has said.
“Our achievements in desalinated water production in the last eight years are equivalent to what was achieved in the previous four decades,” Deputy Minister of Environment, Water and Agriculture Mansour bin Hilal Al-Mushaiti said.
He outlined the accomplishments at the 2025 Budget Forum hosted by the Ministry of Finance in Riyadh, calling the progress a “historic milestone” for the Kingdom, according to the Saudi Press Agency.
Daily desalinated water production has surged to 6 million cubic meters, contributing to a total capacity of 11.3 million cubic meters daily, he added.
The improvement is testament to the Kingdom’s commitment to water security, environmental sustainability and Vision 2030, the deputy minister said.
He highlighted the monumental scale of the Kingdom’s water infrastructure, noting that water production facilities are primarily located along the coasts, requiring water to be transported across thousands of kilometers.
“The water transmission network we have built spans more than 14,000 km — double the length of the Nile River,” he said. “It crosses mountain peaks, valleys and deserts to deliver water to communities across the Kingdom.”
Strategic water storage capacity has also seen a significant boost, rising from 13 million cubic meters in 2016 to more than 25 million cubic meters today.
“This expansion ensures the Kingdom’s resilience in times of crisis, guaranteeing reliable access to water for all regions,” said Al-Mushaiti.
He attributed the achievements to strong government support and private-sector collaboration.
“We have implemented 29 water projects worth SR28 billion ($7.46 billion), of which 30 percent — SR8 billion — is foreign investment,” he said.
Looking forward, Al-Mushaiti announced plans for private sector projects worth SR58 billion.
“We are building a system where public and private sectors work hand-in-hand to achieve national goals,” he said.
Technological advancements have played a critical role in the Kingdom’s water conservation efforts.
Al-Mushaiti said that by using innovation and sustainable practices, the Kingdom is saving more than 9 billion cubic meters of groundwater annually.
“That’s equivalent to the water consumption of the entire Kingdom’s population for three years,” he added.
During the COVID-19 pandemic, the water sector installed 2 million electronic meters, enabling more efficient billing and consumption monitoring.
“These meters send notifications to users when their consumption exceeds normal levels, promoting the principle of ‘responsible consumption’,” Al-Mushaiti said.
Furthermore, water rationalization initiatives in government agencies saved more than 31 million cubic meters of water in 2023 alone.
The ministry’s efforts have also spurred growth in the agricultural sector, which has seen its contribution to gross domestic product rise from SR64 billion in 2016 to SR109 billion in 2023.
“We achieved self-sufficiency rates for many crops that now exceed 100 percent,” Al-Mushaiti said, adding that these gains reflect the success of policies aimed at conserving water resources while boosting productivity.
On the environmental front, Saudi Arabia is making strides with its Saudi Green Initiative.
Al-Mushaiti said that in just three years, the country has planted more than 95 million trees using renewable water and supplementary irrigation.
“This number will surpass 100 million by the end of the year, marking the start of a green era for the Kingdom,” he said.
The deputy minister also highlighted Saudi Arabia’s leadership in addressing global water challenges.
“Water is the backbone of life and development, and achieving sustainability is one of the greatest global challenges,” he said.
In this regard, Crown Prince Mohammed bin Salman in 2023 announced the establishment of the Global Water Organization, headquartered in Riyadh.
The decision underscores Saudi Arabia’s commitment to advancing water sustainability worldwide, Al-Mushaiti said.
He added that the World Bank has recognized Saudi Arabia’s water system as unique and a model that others should study.
As Saudi Arabia pushes forward with its ambitious plans for water security, agriculture and environmental sustainability, Al-Mushaiti concluded with optimism: “The journey so far has been remarkable, but the best is yet to come.”
Saudi Geological Survey celebrates excellence in research, innovation
- Makkah Deputy Gov. Prince Saud bin Mishaal and Minister of Industry and Mineral Resources Bandar Al-Khorayef attended the event
- CEO Abdullah Al-Shamrani reviewed 25 years of accomplishments, emphasizing the survey’s role in advancing geological sciences
JEDDAH: The Saudi Geological Survey recently celebrated its 25th anniversary with a special event in Jeddah, marking a quarter-century of excellence in geological research and exploration.
Makkah Deputy Gov. Prince Saud bin Mishaal and Minister of Industry and Mineral Resources Bandar Al-Khorayef attended the event.
The event highlighted the survey’s achievements, future initiatives, and contributions to geological research and innovation. Guests shared insights from their experiences with the organization.
CEO Abdullah Al-Shamrani reviewed 25 years of accomplishments, emphasizing the survey’s role in advancing geological sciences, supporting national development, and managing resources sustainably.
He also outlined plans to raise awareness of geological risks via the “Rawasi” platform, preserve Zamzam water sustainability, and complete digital transformation of technical services.
Al-Shamrani affirmed a commitment to advancing technical achievements, implementing projects, and supporting development for a promising future through skilled Saudi cadres.
Al-Khorayef said that since the start of the millennium, the Kingdom had made intensive efforts in mineral resource research and exploration. Led by SGS employees, this had yielded significant discoveries over the past 25 years, impacting the mining sector by boosting investment and developing mineral wealth.
He added that the aim was to position the Kingdom as a global leader in earth sciences and geology through ambitious plans, aligning with its international standing.
These efforts included fully uncovering its mineral wealth, meeting geological needs, building a global earth sciences database, and creating a platform for stakeholders worldwide, the minister said.
Saudi Ministry of Culture to cooperate with King Charles’ school on craft training
- Kingdom’s initiative will help Saudi artisans to develop skills in design, craftmanship and traditional arts
- Ministry of Culture’s goal is to ‘regenerate and renew Saudi craft traditions across different regions of the Kingdom’
RIYADH: Saudi Arabia’s Ministry of Culture has signed an agreement with King Charles’ School of Traditional Arts to cooperate in the programs of the Year of Handicrafts 2025 initiative.
The signing ceremony on Wednesday was attended by Prince Bader bin Farhan, minister of culture, at the Saudi International Handicrafts Week Exhibition (Benan), currently held at the Roshn Front in Riyadh.
Khaled Omar Azzam, director of the traditional arts school at The King’s Foundation, and Hamed Fayez, deputy minister of culture, also attended the signing of the agreement, which aims to revive and promote handicrafts in Saudi Arabia throughout 2025.
A series of sessions and trainings will be launched to revive craft production in several Saudi regions through the “Regeneration of the Crafts of Saudi Arabia” comprehensive program, which will start in January 2025.
The King's Foundation School of Traditional Arts will curate programs, training and initiatives that focus on design and crafts, the Saudi News Agency reported.
“The primary goal is to regenerate and renew Saudi craft traditions across different regions of the Kingdom,” a Ministry of Culture statement said.
The King’s Foundation, a British charity established in 1986 by King Charles III when he was Prince of Wales, has been at the forefront of educating traditional arts alongside urban design and traditional architecture.
The agreement between the Saudi Ministry of Culture and The King’s Foundation school is part of the national culture strategy under the umbrella of Saudi Vision 2030.
Saudi Arabia aim to help Saudi artisans, through training, to develop their skills in design, craftmanship and traditional arts.
