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Construction sector and AI to dominate future jobs in Saudi Arabia, says PMI official

Earlier in May, a report released by the US-Saudi Business Council noted that the Kingdom’s construction sector saw the value of awarded contracts increasing to $51.3 billion in 2022 — a 35 percent rise compared to the previous year. (Reuters)
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Updated 17 June 2023
Nirmal Narayanan
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Construction sector and AI to dominate future jobs in Saudi Arabia, says PMI official

  • Kingdom to provide more job opportunities to nationals and foreign talents alike in the coming years
Updated 17 June 2023
Nirmal Narayanan

RIYADH: Saudi Arabia, a country which has been dependent on its rich oil reserves for several decades, is now on a path of economic diversification. With Vision 2030, Saudi Arabia’s Crown Prince Mohammed bin Salman is proving that the Kingdom could perform well in non-oil private sectors too.  

As Saudi Arabia’s private sector expands rapidly, the Kingdom is expected to provide more job opportunities to nationals and foreign talents alike in the coming years. 

Giga-projects like NEOM are presenting enormous job opportunities in the construction sector, along with offering employment in various other areas including advanced technologies like artificial intelligence.

Spotlight on construction sector

According to Grace Najjar, Project Management Institute’s regional managing director for the Middle East and North Africa region, the construction industry is expected to play a crucial role in achieving the goals set forth by Vision 2030, providing immense job opportunities in the future. 

She further noted that Saudi Arabia’s construction sector will witness high demand for skilled professionals which include project managers, engineers and architects. 

“Over 5,200 projects across Saudi Arabia, with a combined worth of $819 billion, are currently underway, representing 35 percent of all active GCC (Gulf Cooperation Council) project values. With such a vast number of projects, there will be a significant demand for skilled professionals in the construction industry, including project managers, engineers, architects and skilled labor,” said Najjar. 

She added: “This demand is expected to continue to rise in the coming years, especially as Saudi Arabia and the entire GCC are on a path of economic diversification.” 

Earlier in May, a report released by the US-Saudi Business Council noted that the Kingdom’s construction sector saw the value of awarded contracts increasing to $51.3 billion in 2022 — a 35 percent rise compared to the previous year. 

“The surge in contract awards continues unabated on the back of a growing economy that was fueled by significant oil revenues and the acceleration of giga-projects following the COVID-19 slowdown,” said Albara’a Alwazir, director of economic research at the USSBC.  

Najjar further pointed out that local talent in Saudi Arabia will get ample chance to explore employment opportunities in the construction sector. 

“In recent years, there has been a push to develop local talent in Saudi Arabia, including in the construction sector. The government has implemented several initiatives to develop skills and create employment opportunities for Saudis, including the National Transformation Program,” added Najjar.

Advanced technologies in focus

The growth of the construction sector in Saudi Arabia is expected to simultaneously increase job opportunities in advanced technologies like artificial intelligence, especially considering the fact that building firms are making use of AI to elevate efficiency and safety. 

“AI-powered construction is taking the industry by storm, and it has the potential to improve productivity, safety and quality in construction projects. AI can be used to streamline project management, including scheduling, resource allocation and risk management,” said Najjar. 

According to the latest Future of Jobs report by the World Economic Forum, the fastest-growing roles in Saudi Arabia will be driven by technology and digitization in the Kingdom. The report noted that Saudi Arabia will witness a sharp rise in demand for AI and machine learning specialists, as almost all businesses are currently undergoing a digital transformation.

Over 5,200 projects across Saudi Arabia, with a combined worth of $819 billion, are currently underway, representing 35 percent of all active GCC project values.

Grace Najjar, Project Management Institute’s regional managing director for the Middle East and North Africa region

Ranim Al-Amin, head of government strategic partnerships in Saudi Arabia at LinkedIn, also shared similar views and noted that the employment-focused social media platform has witnessed a massive uptick in AI-related jobs in the region. 

“It is exciting to think of the transformation that new technologies like AI will bring to the region. We’ve already witnessed this change accelerate on LinkedIn since November, with AI starting to upend work everywhere for everyone all at once.  It’s only been a few months, but we’ve seen the number of jobs on LinkedIn mentioning GPT for example increase by 51 percent from 2021 to 2022,” said Al-Amin. 

She added: “We also saw the usage of keywords such as ChatGPT, Prompt Engineering, Prompt Crafting, Generative AI, and Generative Artificial Intelligence on profiles globally increase 71 percent from February to March 2023 — a massive jump in just one month.”

Rise in hybrid mode of work

It was during the pandemic outbreak that several companies gave employees a provision to work from home. However, even as the pandemic waned, many companies and employees all over the world still prefer a hybrid mode of work and the Kingdom is no different. 

“Our recent data shows that ‘software engineer’ came in sixth place among the top jobs in the Kingdom in 2022, with 45.7 percent of those openings offering a hybrid option; the highest percentage among the top 10 jobs,” said Al-Amin.

It is exciting to think of the transformation that new technologies like AI will bring to the region. We’ve already witnessed this change accelerate on LinkedIn.

Ranim Al-Amin, Head of government strategic partnerships in Saudi Arabia at LinkedIn

She added: “It is also worth noting that 10.3 percent of all entry-level jobs allowed a remote or hybrid format, witnessing a 5.7 percent increase from last year whereas senior-level jobs remained unchanged from last year with only 8.9 percent offering remote work.” 

Meanwhile, Saudi Arabia, in line with the targets outlined in Vision 2030, is making great strides in reducing the unemployment rate. 

According to the General Authority for Statistics’ labor force survey, the unemployment rate fell to 8 percent in the fourth quarter of 2022, from 9.9 percent in the previous three months.

Hardly surprising then that the Kingdom has set itself a target unemployment rate of 7 percent by 2030.

Topics: Vision 2030 Saudi Arabia Construction sector Saudi giga-projects artificial intelligence

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NEOM board of directors announces leadership change

Updated 12 November 2024
Arab News
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NEOM board of directors announces leadership change

  • Head of Public Investment Fund’s Local Real Estate Division since 2018, Al-Mudaifer has a deep and strategic understanding of NEOM and its projects
Updated 12 November 2024
Arab News

NEOM: The NEOM Board of Directors on Tuesday announced the appointment of Aiman Al-Mudaifer as acting CEO of the company. Al-Mudaifer assumes leadership of NEOM, following Nadhmi Al-Nasr’s departure.

As NEOM enters a new phase of delivery, this new leadership will ensure operational continuity, agility and efficiency to match the overall vision and objectives of the project.

Al-Mudaifer takes the helm of the organization with the support of a strong leadership team across NEOM’s regions, sectors and departments.

Head of Public Investment Fund’s Local Real Estate Division since 2018, Al-Mudaifer has a deep and strategic understanding of NEOM and its projects.

In his role at PIF, Al-Mudaifer oversees all local real estate investments and infrastructure projects. He is also a board member of multiple prominent companies within the Kingdom.

NEOM is a fundamental pillar of Saudi Vision 2030 and progress continues on all operations as planned, as we deliver the next phase of our vast portfolio of projects including THE LINE, Oxagon, Trojena, Magna and The Islands of NEOM. 

Through these projects, NEOM seeks to achieve harmony between livability, business and nature, and to create a better future for current and future generations.

Topics: Saudi Arabiaa Saudi Arabia NEOM

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Maldives, Bulgaria push for greater climate action, financing

Updated 12 November 2024
Reem Walid
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Maldives, Bulgaria push for greater climate action, financing

Updated 12 November 2024
Reem Walid

RIYADH: Insufficient financing continues to be a significant barrier preventing many countries, especially underdeveloped nations, from meeting their climate goals, according to the President of the Maldives.

Speaking on the second day of COP29, held in Azerbaijan from Nov. 11-22, Mohamed Muizzu emphasized that small island developing states require trillions, not billions, of dollars in climate finance.

“It is the lack of finance that inhibits our ambitions, which is why this COP, the finance COP, we need to deliver the new climate finance goal. This must reflect the true scale of the climate crisis. The need is in trillions, not billions,” Muizzu said.

He added, “It must consider the special circumstances of small island developing states — it must include adaptation, mitigation, and loss and damage.”

Muizzu also reiterated the importance of the environment for his country, stating: “You have called for stronger climate action. Our call has not changed. Our cause has not strayed because, for us, the environment and the ocean are more than resources. They are our cultural identity.”

In a similar vein, Bulgarian President Rumen Radev addressed the global impact of climate-related disasters, emphasizing that no region is immune to the deadly and costly consequences of climate change.

“Bulgaria is committed not only to being part of regional and energy cooperation initiatives across Central and Eastern Europe, the Balkans, and the Black Sea region but also beyond, by strengthening the links between the European Union and non-EU countries who share our priorities on climate neutrality, just energy transition, energy security, and low-carbon technological innovation,” Radev said.

He further called for broader action, stating, “All parties should undertake greater efforts to integrate climate change adaptation and resilience into all policies and strategies.”

Topics: COP29 Green & Blue climate

Closing Bell: Saudi main index slips to 12,048

Updated 12 November 2024
Nirmal Narayanan
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Closing Bell: Saudi main index slips to 12,048

Updated 12 November 2024
Nirmal Narayanan

RIYADH: Saudi Arabia’s Tadawul All Share Index fell on Tuesday, losing 58.74 points to close at 12,047.67.

The total trading turnover of the benchmark index was SR5.75 billion ($1.53 billion), with 70 stocks advancing and 152 declining.

Saudi Arabia’s parallel market saw a drop, losing 50.59 points to close at 29,110.41. The MSCI Tadawul Index also declined, shedding 5.06 points to end at 1,516.14.

The best-performing stock on the main market was Al Jouf Cement Co., with a 4.75 percent increase to SR10.58. Other top gainers included Malath Cooperative Insurance Co. and Elm Co., with shares rising by 4.40 percent to SR15.66 and 3.87 percent to SR1,101.1, respectively.

The worst performer on the main index was Fawaz Abdulaziz Alhokair Co., whose share price dropped by 4.42 percent to SR12.12.

National Environmental Recycling Co., also known as Tadweer, announced it had signed a memorandum of understanding with Re Sustainability Middle East Co. to explore the potential for establishing smelters and recycling units in the Kingdom. According to a statement on Tadawul, the deal is valid for one year and carries no immediate financial impact.

The company’s share price declined by 0.45 percent to SR13.4. 

Purity for Information Technology Co. announced it has secured a contract valued at SR10.7 million from Saudi Comprehensive Technical and Security Control Co. to supply technology equipment. The company stated that the financial impact of the contract will be reflected in the first quarter of next year.

Its share price dropped by 0.73 percent to SR8.33.

Red Sea International Co. reported a narrowed net loss of SR2.18 million for the first nine months of this year, compared to a SR54.7 million loss in the same period in 2023. According to a statement on Tadawul, the improvement was driven by a 515.78 percent year-on-year increase in sales revenue. However, Red Sea International’s share price declined by 4.05 percent to SR71.

Lazurde Co. for Jewelry reported a 42.98 percent decline in net profit for the first nine months, totaling SR24.8 million, compared to the same period last year. The company attributed this drop to a 6.61 percent year-on-year decrease in operating profit over the nine-month period. Lazurde’s share price dropped by 2.05 percent to SR13.36.

Topics: Closing Bell Saudi Stock Exchange (Tadawul) Tadawul All Share Index (TASI)

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UN climate chief urges aggressive action as emissions hit GDP

Updated 12 November 2024
Nirmal Narayanan
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UN climate chief urges aggressive action as emissions hit GDP

  • UN official warned that worsening climate impacts will ‘put inflation on steroids’ unless every country takes bolder climate action
  • Simon Stiell called on governments to leave COP29 with a clear global climate finance plan
Updated 12 November 2024
Nirmal Narayanan

RIYADH: The global climate crisis is rapidly evolving into an economic threat, with the impact of emissions reducing the gross domestic product of several countries by up to 5 percent, a UN official said. 

Speaking at the high-level segment for heads of state and government at the COP29 in Baku, Simon Stiell, executive secretary of the UN Framework Convention on Climate Change, emphasized the urgent need for more aggressive climate actions to address economic challenges, including rising inflation. 

“We used to talk about climate action as being mostly about saving future generations. But there has been a seismic shift in the global climate crisis, as the climate crisis is fast becoming an economy killer,” said Stiell. 

He added, “In this political cycle, climate impacts are curving up to 5 percent off GDP in many countries. The climate crisis is a cost-of-living crisis, as climate disasters are driving up costs for households and businesses.” 

Stiell’s comments came shortly after a report by finance consultancy Oxera, which revealed that climate-related extreme weather events have cost the global economy more than $2 trillion over the past decade, with the US being the most affected. 

The UN official warned that worsening climate impacts will “put inflation on steroids” unless every country takes bolder climate action. 

Stiell urged the world to learn from the COVID-19 pandemic, highlighting the economic suffering caused by slow and ineffective collective action on supply chain issues. 

Describing climate finance as “global inflation insurance,” he warned that failing to address the economic toll of climate change would lead to disaster. 

“Letting this issue languish halfway down cabinet agendas is a recipe for disaster,” he said. 

However, Stiell remained optimistic, asserting that effective climate action could save economies and create new economic opportunities. He pointed to the growth of renewable energy as a potential driver of stronger financial states for nations. 

“This isn’t just about saving your economies and people,” he said. “Bolder climate action can drive economic opportunity. Cheap, clean energy can be the bedrock of your economies. It means more jobs, growth, less pollution choking cities, healthier citizens, and stronger businesses.” 

Stiell called on governments to leave COP29 with a clear global climate finance plan and urged international cooperation as the key to combating global warming and ensuring humanity’s survival. 

“We need your direct engagement on new national climate targets and plans — NDCs — so that all of you can benefit from the boom in clean energy and climate resilience,” said Stiell. 

He added: “These are not easy times, but despair is not a strategy, nor is it warranted. Our process is strong, and it will endure. After all, international cooperation is the only way humanity can survive global warming.” 

Topics: COP29 UN Climate Change Conference Azerbaijan Green & Blue

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OPEC revises down global oil demand growth forecasts for 2024, 2025

Updated 12 November 2024
Reuters
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OPEC revises down global oil demand growth forecasts for 2024, 2025

  • OPEC revised its 2024 global oil demand growth estimate to 1.82 million barrels per day, down from 1.93 million bpd forecast last month
Updated 12 November 2024
Reuters

LONDON: The Organization of the Petroleum Exporting Countries has again downgraded its global oil demand growth projections for both 2024 and 2025, marking the fourth consecutive reduction.

The revision, announced on Tuesday, underscores weaker demand expectations for key regions such as China, India, and other parts of the world.

The updated forecast highlights the ongoing challenges faced by OPEC+, the broader alliance that includes OPEC members and partners like Russia. Earlier this month, OPEC+ delayed plans to increase oil output starting in December, citing concerns over falling oil prices.

In its latest monthly report, OPEC revised its 2024 global oil demand growth estimate to 1.82 million barrels per day, down from 1.93 million bpd forecast last month. This marks the first revision to the outlook since it was initially set in July 2023.

China was the primary driver of the downward revision. OPEC reduced its forecast for Chinese oil demand growth to 450,000 bpd, down from 580,000 bpd, noting that diesel consumption in September dropped year on year for the seventh consecutive month. OPEC attributed this decline to a slowdown in construction and weak manufacturing activity, as well as the rising use of LNG-fueled trucks in China.

The weaker outlook weighed on oil prices, with Brent crude trading below $73 per barrel following the release of the report.

The demand outlook for 2024 remains uncertain, with significant differences among forecasters regarding the strength of global demand growth, particularly concerning China’s recovery and the pace at which the world transitions to cleaner fuels.

In addition to the 2024 revision, OPEC also lowered its forecast for global oil demand growth in 2025 to 1.54 million bpd, down from the previous estimate of 1.64 million bpd.

Topics: OPEC OPEC+

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