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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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Saudi Arabia’s GACA ushers in new era of passenger experience with AI

Updated 21 November 2024
MOHAMMED AL-KINANI
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Saudi Arabia’s GACA ushers in new era of passenger experience with AI

Updated 21 November 2024
MOHAMMED AL-KINANI

JEDDAH: Saudi Arabia’s aviation authority is revolutionizing the passenger experience by incorporating artificial intelligence into its services, in alignment with the nation’s strategic aviation plan, a senior Saudi official said.

At the 2024 Global Civil Aviation Forum in Shanghai, Abdulaziz bin Abdullah Al-Dahmash, vice president of the General Authority of Civil Aviation for Quality and Passenger Experience, highlighted the authority’s ongoing initiatives designed to improve passenger satisfaction.

A session dedicated to GACA’s role in enhancing the passenger experience featured international experts and focused on the authority's efforts to align with Saudi Arabia's aviation strategy and Vision 2030.

The discussion underscored Saudi Arabia's use of data analytics and AI to transform the aviation sector, supporting the National Aviation Strategy and the broader Vision 2030 objectives. This approach is part of the Kingdom's goal to achieve excellence in both aviation services and infrastructure.

The National Aviation Strategy serves as a roadmap to solidify Saudi Arabia’s position as a global leader in tourism, business travel, and logistics. Built around three core pillars — empowering national tourism, improving domestic aviation, and aligning with Vision 2030 — the strategy aims to enhance interconnectivity, increase the market share of national carriers, and expand airport infrastructure.

By leveraging its strategic location and investment potential, Saudi Arabia’s aviation strategy directly contributes to Vision 2030, which aims to strengthen services and bolster the travel and logistics sectors.

Al-Dahmash noted that to achieve the National Aviation Strategy’s ambitious goals, which include tripling passenger traffic to 330 million annually by 2030, Saudi Arabia is prioritizing major infrastructure projects.

This includes constructing new airports, such as the King Salman International Airport, and expanding existing ones to accommodate the surge in passenger numbers. Alongside this, there is a strong focus on improving operational efficiency and enhancing the overall passenger experience.

In this context, GACA is actively developing and implementing programs to meet evolving passenger expectations. One such innovation is the introduction of AI-powered systems that manage and monitor passenger flow, tracking wait times across Saudi airports.

Additionally, the “Bagless Traveler” initiative is transforming the travel process by enabling passengers to complete check-in and baggage handling from their accommodation. During its pilot phase, the service successfully assisted over one million passengers, with more than 2 million bags processed without incident.

Al-Dahmash also emphasized the importance of regulatory frameworks that GACA has implemented, noting that these efforts have significantly improved services at Saudi airports, leading to higher levels of passenger satisfaction. This success has garnered recognition, with several airports receiving local and international awards.

Moreover, GACA has presented its innovative passenger experience programs at global conferences, sharing its best practices with civil aviation authorities worldwide, demonstrating how others can leverage these advancements for similar success.

Topics: GACA aviation

Closing Bell: Saudi main index slips to close at 11,840

Updated 21 November 2024
REEM WALID 
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Closing Bell: Saudi main index slips to close at 11,840

  • Parallel market Nomu gained 681.17 points, or 2.28%, to close at 30,540.28
  • MSCI Tadawul Index lost 4.52 points, or 0.30%, to close at 1,486.82
Updated 21 November 2024
REEM WALID 

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Thursday, losing 27.40 points, or 0.23 percent, to close at 11,840.52. 

The total trading turnover of the benchmark index was SR5.39 billion ($1.43 billion), as 98 of the stocks advanced and 131 retreated. 

The Kingdom’s parallel market Nomu gained 681.17 points, or 2.28 percent, to close at 30,540.28. This comes as 63 of the listed stocks advanced, while 23 retreated. 

The MSCI Tadawul Index lost 4.52 points, or 0.30 percent, to close at 1,486.82. 

The best-performing stock of the day was Al-Baha Investment and Development Co., whose share price surged 10 percent to SR0.33. 

Other strong performers included Saudi Reinsurance Co., with a 7.05 percent increase in its share price to SR43.30, and Saudi Chemical Co., which saw its share price rise 5.46 percent to SR10.24. 

Saudi Cable Co. recorded the largest decline, with its share price dropping 4.02 percent to SR97.90. 

CHUBB Arabia Cooperative Insurance Co. also saw its stock fall 3.13 percent to SR49.50. 

Naseej International Trading Co. experienced a 2.64 percent drop in its share price, which fell to SR92.30. 

On the announcements front, Saudi Awwal Bank has disclosed its intention to issue an SR-denominated Additional Tier 1 Sukuk through a private placement in the Kingdom, as part of its SR20 billion Additional Tier 1 Sukuk issuance program. 

According to a Tadawul statement, the bank has appointed HSBC Saudi Arabia as the sole lead manager for the proposed offer. The statement said the purpose of the issuance is to strengthen the bank’s capital base and support the achievement of its long-term strategic objectives. 

The amount and terms of the sukuk will be determined at a later stage, based on market conditions at that time. 

Saudi Awwal Bank closed the session at SR31.40, down 0.63 percent. 

The Saudi Investment Bank has announced the completion of its US dollar-denominated Additional Tier 1 capital sustainable sukuk offering under its Additional Tier 1 capital sukuk program. 

A bourse filing revealed that the offer is valued at $750 million, comprising 3,750 sukuk with a par value of $200,000 each and a return of 6.275 percent. 

The sukuk have a perpetual maturity, callable after five years. Settlement of the sukuk issuance is scheduled for Nov. 27, and the sukuk will be listed on the London Stock Exchange’s International Securities Market. 

Saudi Investment Bank closed the session at SR13.88, down 0.29 percent. 

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

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Aramco to increase borrowing, focus on dividend growth, CFO says

Updated 21 November 2024
Reem Walid
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Aramco to increase borrowing, focus on dividend growth, CFO says

Updated 21 November 2024
Reem Walid

RIYADH: Saudi Aramco plans to increase borrowing and focus on enhancing its dividend distribution strategy, revealed the company’s chief financial officer. 

In an interview with Bloomberg, Ziad Al-Murshed explained that this move is part of the company’s efforts to optimize its capital structure. 

Aramco is considered one of the pillars of the Saudi economy, encompassing the entire oil production chain, from hydrocarbon extraction to energy generation, as well as refining and commercial distribution activities.  

“You’ll see us do a couple of things. One is, just take on more debt compared to use of equity,” Al-Murshed said during the interview. 

“It’s nothing to do with the dividend, it is optimizing our capital structure so that we end up with a lower weighted average cost of capital,” he added. 

Aramco returned to the debt market earlier this year after a three-year hiatus, raising $9 billion in two separate issuances. In June, it launched a $6 billion offering of dollar-denominated bonds, followed by a $3 billion issuance of Islamic bonds in September.   

The CFO noted: “We had the luxury of sitting out those three years until the market became conducive.” 

Al-Murshed provided insight into how the company increased its dividend by 4 percent in each of the past two years and is now paying over $81 billion in base dividends. 

“We’re looking for it to be progressive over the years,” he said, adding that the company’s free cash flow supports this strategy. 

While the company plans to issue debt regularly, Al-Murshed emphasized that it will not be overly frequent and revealed that Aramco has no plans to sell more debt for the remainder of 2024. 

“We want to be active, but we don’t want to be too active,” he said. 

The CFO further clarified that the company’s decision to sell debt is primarily aimed at broadening its investor base. 

Al-Murshed did not specify whether Aramco would borrow to support its dividend payments, which are set to total $124 billion this year, exceeding the company’s earnings. 

Earlier this month, Aramco reported a net profit of SR103.37 billion ($27.52 billion) for the third quarter of 2024, exceeding analyst expectations, which had projected a median net income of $26.9 billion. 

However, in a statement released at the time, the company noted a 15.4 percent decline in net profit compared to the same period in 2023, attributed to challenging market conditions, including lower prices for crude oil, refined products, and chemicals. 

Aramco’s vision remains to be the world’s leading integrated energy and chemicals company, operating in a safe, sustainable, and reliable manner.   

Topics: Aramco Saudi Aramco

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Saudi Arabia's Ma’aden proceeds with $10bn capital raise to boost phosphate stake

Updated 21 November 2024
MIGUEL HADCHITY 
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Saudi Arabia's Ma’aden proceeds with $10bn capital raise to boost phosphate stake

  • Ma’aden said its shareholders will convene virtually on Dec. 11 to approve the capital increase
  • Plan includes issuing 111 million new ordinary shares valued at SR10 each
Updated 21 November 2024
MIGUEL HADCHITY 

RIYADH: Saudi Arabian Mining Co., or Ma’aden, has issued a shareholder circular outlining the terms of its plan to raise its share capital to SR38.03 billion ($10.1 billion) from SR36.92 billion to boost its phosphate business. 

The move follows an earlier announcement to acquire a 25 percent stake in Ma’aden Wa’ad Al-Shamal Phosphate Co. from Mosaic Phosphates B.V., increasing its ownership in the joint venture to 85 percent. 

In April, Ma’aden announced the signing of an agreement to acquire 210.93 million shares owned by Mosaic Co. and its subsidiary, Mosaic Phosphates B.V. Regulatory approval for the transaction was granted in November by the Capital Market Authority.

In a bourse filing, Ma’aden said its shareholders will convene virtually on Dec. 11 to approve the capital increase. The plan includes issuing 111 million new ordinary shares valued at SR10 each, representing a 3.01 percent rise in the company’s share capital. 

In exchange, Mosaic Phosphates will transfer its MWSPC stake to Ma’aden, aligning with the Saudi firm’s strategic expansion in the phosphate sector. 

MWSPC, established in 2014 and based in Turaif, is a joint venture between Ma’aden, Mosaic Co., and Saudi Basic Industries Corp. Following the transaction, SABIC will retain its 15 percent stake while Ma’aden strengthens its position as a global phosphate leader. 

Mosaic Netherlands Holding Co., a subsidiary of Mosaic Co., will receive the newly issued shares, which will be subject to a three-year lock-up period. Limited transfers will begin in the fourth year, with full tradability by the fifth year, the circular said. 

The acquisition will enhance Ma’aden’s control over MWSPC, recognized as a low-cost, large-scale phosphate producer. It will also grant Ma’aden access to Mosaic’s marketing rights, a component of the deal’s valuation at SR5.62 billion. 

Ma’aden expects increased earnings per share following the transaction, reflecting anticipated synergies and enhanced operational efficiencies, according to the document. 

The company assured shareholders that all regulatory approvals for the transaction have been secured, with a detailed timeline for procedural steps provided in the circular. 

The move underscores Ma’aden’s commitment to driving value creation in the Kingdom’s mining sector, aligning with Saudi Vision 2030 goals to diversify the economy and develop industrial capabilities. 

In the first half of this year, Ma’aden achieved a net profit of SR2 billion, marking a 160 percent increase compared to the same period in 2023. 

The surge in profitability was driven by several key factors. A major contributor to this financial success was the significant boost in sales volume, according to a Tadawul statement. 

The company’s robust performance in primary aluminum and gold sales played a crucial role in driving up revenues. Ma’aden also benefited from reductions in raw material costs and lower depreciation expenses, which further enhanced its profitability. 

Ma’aden’s performance and strategic advancements underscore its commitment to leading the mining sector and contributing to Saudi Arabia’s economic diversification goals, particularly in developing mining as a critical pillar of the Kingdom’s industry. 

Topics: Saudi Arabia Mining Saudi Arabian Mining Co. (Ma’aden) Ma’aden Saudi mining

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Saudi Urban 20 delegation emphasizes need for frameworks to tackle development issues 

Updated 21 November 2024
Nour El-Shaeri 
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Saudi Urban 20 delegation emphasizes need for frameworks to tackle development issues 

Updated 21 November 2024
Nour El-Shaeri 

RIYADH: Saudi Arabia emphasized the need for comprehensive strategic frameworks to tackle global economic, climate, and development challenges during the seventh Urban 20 Summit in Rio de Janeiro. 

A delegation led by Fahd Al-Rasheed, adviser to the General Secretariat of the Saudi Council of Ministers, participated in several key discussions at the event, highlighting the Kingdom’s urban development strategies and its commitment to sustainability, social inclusion, and economic empowerment on a global scale. 

Speaking about the country’s approach to urban transformation, Al-Rasheed said: “Saudi Arabia has adopted a comprehensive strategic framework for urban development and transformation that empowers city leadership to pursue the initiatives that drive their growth and success.” 

He also underlined that the U20, which unites cities from G20 member states, is vital in facilitating tools such as financing models to support cities in achieving their goals. 

Al-Rasheed gave those remarks during a panel discussion titled “Empowering Cities on their Own Paths to Development,” which included global urban leaders such as Edward Glaeser of Harvard University, Nasiphi Moya, mayor of Pretoria, and Kate Gallego, mayor of Phoenix. 

At the summit, Al-Rasheed also attended the launch of the first U20 book, a compilation of insights from global urbanists addressing shared challenges faced by metropolizes. 

His contribution, titled “Enlightened City Leadership: A New Model for a Sustainable Urban Future,” highlighted the importance of training city leaders to manage the complexities of modern urban administration. 

“Delivering on urban development imperatives requires comprehensive strategic planning that embraces governance, resourcing, and competitive advantage,” he remarked. 

Al-Rasheed pointed to projections that cities with populations exceeding 1 million will increase from 700 today to 1,600 by 2080. 

To meet the growing demand, he underlined that approximately 2 million urban leadership professionals will need to be trained over the next 35 years. 

“Urban development plans must include mechanisms to address pervasive issues, including poverty and social inclusion while preparing the next generation of city leaders to confront the deluge of challenges that cities will continue to face worldwide,” he said. 

The Urban 20 event in Brazil. Supplied

Al-Rasheed further explained that although many institutions offer training in disciplines such as urban planning, civil engineering, and public administration, there remains a lack of programs providing a comprehensive curriculum specifically focused on preparing city leaders to address both the technical and socioeconomic aspects of their roles. 

The U20 summit concluded with a closed-door session attended by Luiz Inacio Lula da Silva, president of Brazil, where Al-Rasheed reiterated the Kingdom’s commitment to sustainability and social equity in urban development. 

“We are proud to represent Saudi Arabia’s unique perspective and experience in urban development on this important global stage,” he said, according to press release, adding: “We look forward to continuing Saudi Arabia’s legacy of leadership at the Urban 20 and to continuing our work with urban leaders from around the world to unify city voices around common challenges.” 

Among the highlights of the delegation’s activities was a mayoral dinner co-hosted by Al-Rasheed and Eduardo Paes, mayor of Rio de Janeiro and chair of this year’s Urban 20. 

The event brought together more than 100 city leaders, including the mayors of major cities such as Paris, Pretoria, Helsinki, and Phoenix, to celebrate civic leadership and its impact on urban development. 

Representatives from multinational organizations, such as Anaclaudia Rossbach, executive director of UN-Habitat, also attended the gathering.

In his opening remarks at the dinner, Al-Rasheed said: “Mayoral leadership calls for a unique combination of abilities to anticipate and navigate future trends, including technological disruptions, economic shifts, and demographic changes, while demonstrating the social sensitivity to care for and improve citizens’ daily lives.” 

He added: “By convening senior city leaders from around the world to address the common challenges of urban development and city leadership, Saudi Arabia continues to demonstrate its commitment to global collaboration in the spirit of the Urban 20.”

Topics: G20 Urban 20 (U20) mayors summit Fahd Al-Rasheed

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