Saudi labor market transformation ‘spectacular,’ says former Swedish minister 

Sven Otto Littorin spoke to Arab News. AN
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Updated 29 January 2025
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Saudi labor market transformation ‘spectacular,’ says former Swedish minister 

RIYADH: Countries around the world can take lessons from the transformation of Saudi Arabia’s labor market, a former Swedish employment minister has insisted.

Speaking to Arab News on the sidelines of the Global Labor Market Conference in Riyadh, Sven Otto Littorin praised the Kingdom’s progress since the launch of Vision 2030, which has seen female workforce participation doubling in nearly six years. 

The changes have seen Saudi Arabia emerge as a global leader in addressing labor market challenges, skill development, and workforce prequalification, as highlighted in the inaugural GLMC report in December. 

The findings align with Vision 2030’s goal to reduce unemployment from 11.6 percent in 2017 to 7 percent by the end of the decade. 

“I would go as far as to say that most other countries could learn a thing or two from Saudi Arabia. The transformation of the Saudi labor market since the start of Vision 2030 is truly nothing less than spectacular. The Kingdom has made so much progress in such a short time it is hard to choose,” said Littorin, who is also an international business and policymaking expert. 

He praised the significant increase in female workforce participation, noting that Saudi Arabia achieved a twofold rise in just six years, a feat that took Sweden 40 years to accomplish. 

“Roughly 35 percent of women in the workforce have leadership positions, and I saw an opinion poll recently that stated that over 75 percent of Saudi men saw this as very favorable to family life,” he added. 

Unprecedented progress 

The Kingdom’s labor market reforms align with Vision 2030 goals, as recent data from Saudi Arabia’s General Authority for Statistics shows the overall unemployment rate fell to 3.7 percent in the third quarter of 2024, a 0.5 percentage point drop from the previous year. 

Unemployment among Saudi nationals was 7.8 percent, while female participation reached 36.2 percent. 

Littorin emphasized the broader societal impact of these changes, saying: “As a foreigner, I have to say that it is so gratifying to see these women in the labor market, earning their own money, contributing to their families and to the growth of the country with their productivity, their grit, and ambition.” 

He added: “Saudi Arabia is a richer nation for it, where everyone is involved in the growth of the country.”

Saudi Arabia’s young workforce is another key driver of its economic transformation, Littorin noted. “The Gulf Cooperation Council region and Saudi Arabia, in particular, have a very young workforce. This is a great advantage compared with many other places around the world. A young workforce is versatile, agile, and finds it easier to learn new skills than others,” he said. 

The former minister also pointed to the Kingdom’s growing appeal to international investors and tourists. “When I first came to Riyadh in 2017, I was almost the only foreigner on every flight I took into the Kingdom. Now, these flights are filled with tourists and investors alike. The interest in Saudi Arabia has exploded,” Littorin said. 

A November report by BlackRock Investment Institute echoed this sentiment, predicting that Saudi Arabia’s future growth will be driven by its young population and abundant natural resources. However, the report cautioned that success will depend on governance, regulatory improvements, and labor market reforms. 

Sustainable growth 

Littorin stressed the importance of international cooperation to sustain this growth. He suggested partnerships between Saudi Arabia and countries like Sweden to enhance the Kingdom’s job market. 

“Saudi Arabia might want technological solutions in waste management from Sweden, for instance,” Littorin said. 

He added that the Saudi workforce is young and eager to learn from abroad, suggesting that joint venture solutions could foster mutual learning, with the possibility of exchanging workforces for a period to strengthen bonds between companies, economies, and countries. 

“Solutions like this would create larger markets for the companies involved, enhance job training for both Swedes and Saudis, broaden international exposure and contacts while increasing relevancy to both countries. The world is global, and so are its solutions,” Littorin added. 

Global platform 




The Global Labor Market Conference in Riyadh. AN

The second edition of the GLMC is taking place at the King Abdulaziz International Convention Center on Jan. 29-30, drawing over 5,000 attendees and 200 speakers, including ministers, CEOs, and experts from more than 50 countries. 

Littorin, a keynote speaker at the event, described the conference as a global platform for dialogue on future labor market trends. This year’s conference focuses on skills and productivity, exploring how education, skilling, upskilling, and reskilling can better meet tomorrow’s demands. 

“Solutions in economic policy, education policy, and labor market policy need to go hand in hand to support the transformation of our economies for the good of both people, companies, and countries,” he said. 

Littorin emphasized the need for upskilling and reskilling to adapt to the fast-evolving job market. “The long-term key to economic growth and prosperity is not only to find ways to create more jobs but to create better jobs; jobs that through higher productivity are more rewarding to the individual and contribute more to the economy,” he said. 

The former minister highlighted the role of advanced technologies like artificial intelligence in shaping global labor markets, particularly in the Middle East, emphasizing that “technology, digital transformation, and AI are key in so many aspects.” 

“Technology will enhance our ability to better understand where we are and where we are going. Digitalization will improve productivity not only in general terms but specifically in education and job matching,” Littorin said.


Egypt’s official reserve assets soar 36% annually to reach $45bn

Updated 17 February 2025
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Egypt’s official reserve assets soar 36% annually to reach $45bn

RIYADH: Egypt’s official reserve assets surged by nearly 36 percent year on year, reaching $45.05 billion in January, according to recent data. 

Figures from the Central Bank of Egypt show that the increase was primarily driven by a sharp rise in the value of gold reserves, which grew by 37 percent over the year, reaching $11.42 billion. 

Gold now represents around 25 percent of Egypt’s total reserves, reinforcing its role as a key hedge against global economic volatility and a valuable buffer for the country’s foreign exchange position. 

The growth in Egypt’s reserves was not limited to gold. A significant 70 percent rise in other reserve assets also contributed to the overall increase, representing approximately 49 percent of the total reserves. 

Data also showed that foreign currency reserves in convertible currencies remained relatively stable, edging up by just 1.05 percent to $11.2 billion in January. 

Special Drawing Rights, a form of international reserve asset issued by the International Monetary Fund, witnessed a dramatic decline of 91.55 percent, falling to just $31 million. 

This sharp drop suggests that Egypt has likely tapped into its SDR holdings to meet urgent liquidity needs, further highlighting the strain on the country’s foreign exchange resources. 

Meanwhile, other foreign currency assets, which include securities and deposits not classified as part of the Central Bank’s official reserve holdings, increased by 18.65 percent, reaching $14.06 billion.  

The rise was primarily driven by a surge in foreign deposits outside the official reserves, which rose by 53 percent to $10.17 billion. 

The need for enhanced liquidity in Egypt became especially pronounced throughout 2024. The country faced severe foreign exchange shortages, a sharp devaluation of the Egyptian pound, and mounting structural economic pressures. 

The Egyptian pound’s decline to a record low on the parallel market exacerbated trade disruptions and investor uncertainty, prompting urgent economic reforms. 

In response to these challenges, Egypt secured a landmark $35 billion agreement with Abu Dhabi’s ADQ in February, injecting critical reserves. 

In March, the country also received an $8 billion package from the International Monetary Fund, which provided essential support for fiscal and structural adjustments. 

The central bank’s decision to float the currency and implement interest rate hikes further helped restore stability. 

These policy measures not only helped attract foreign inflows but also boosted remittances, which contributed to the recovery of Egypt’s reserve levels. 


Global cooperation and AI key to boosting productivity in developing economies, say AlUla panelists 

Updated 17 February 2025
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Global cooperation and AI key to boosting productivity in developing economies, say AlUla panelists 

February 16-17RIYADH: Technology adoption, institutional capabilities, and entrepreneurship are crucial for driving productivity across developing economies, government and industry leaders insisted at the AlUla Conference for Emerging Market Economies. 

The event highlighted artificial intelligence, digital transformation, and global cooperation as key to strengthening financial stability, promoting sustainable growth, and enhancing economic resilience in these regions. 

This comes on the back of the growing importance of these technologies in enhancing financial decision-making, reducing risks, and increasing economic resilience by improving transparency and access to financial services.

Reflecting on previous discussions around the topic, Saudi Arabia’s Minister of Economy and Planning Faisal Al-Ibrahim, said: “We talked about diversification, but it was hard to get the political will and the whole-of-government and whole-of-nation action behind it. Today, we’re seeing it, and we’re trying to make it count.”

Al-Ibrahim emphasized that while transformative technologies play a crucial role in boosting productivity, their adoption is not a straightforward process. 

He noted that emerging economies cannot simply implement a technology support package and expect immediate results. Instead, he stressed the importance of developing the necessary capabilities and foundational elements to effectively integrate and benefit from these technologies. 

Saudi Arabia’s Vision 2030 initiative has positioned both the private and public sectors to capitalize on artificial intelligence. 

“There are institutional capabilities in the private sector and, with Vision 2030, even in the public sector. Because of that, we’re seeing companies in generative AI flocking to companies such as Aramco and the energy sector because the use cases are clear, and the data is structured and ready to be used,” Al-Ibrahim added. 

Argentina’s Minister of Deregulation and State Transformation, Federico Sturzenegger, shared an optimistic perspective on AI’s impact, adding that the technology will accelerate economic transformation, affecting labor markets and commodity prices. 

Brookings Senior Fellow Santiago Levy pointed out structural challenges in emerging economies, particularly the lack of mid-sized firms capable of adopting technology, saying: “There are very few firms that can actually engage in technology adoption,” he said. 

Looking ahead, Al-Ibrahim stressed the importance of bold leadership and policy decisions to accelerate transformation. 

“We want to see more innovation-driven entrepreneurship activity commensurate with the level of activity at Vision 2030. It attracts innovators and creates high-value jobs in the long term,” he said. 

Global collaboration was another key theme of the discussion. Al-Ibrahim urged stakeholders to shift their approach, saying: “It needs to move away from trying to please everyone at the cost of offering a meaningful, serious solution to the problem.” 


Saudi Capital Markets Forum 2025 to drive growth and innovation in global finance

Updated 17 February 2025
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Saudi Capital Markets Forum 2025 to drive growth and innovation in global finance

RIYADH: Saudi Arabia is set to host the fifth edition of the Capital Markets Forum from Feb. 18 to 20 in Riyadh, uniting leading financial experts in the capital and highlighting the Kingdom’s position as a key economic hub.

Organized by the Saudi Tadawul Group and held under the patronage of the Minister of Finance and Chairman of the Financial Sector Development Program Committee, Mohammed Al-Jadaan, the forum will convene top policymakers, business leaders, and industry experts to discuss key trends and developments shaping the nation’s capital markets.

With a strong focus on the evolving financial landscape, the event will be held under the theme “Powering Connections,” and is set to unlock new investment opportunities, foster strategic partnerships, and further position the Kingdom as a key player in the global capital markets ecosystem.

Saudi-based economist Talat Hafiz told Arab News that the forum “provides a vital platform for stakeholders to engage in meaningful discussions, explore emerging market opportunities, and shape the future of capital formation.”

He added: “Saudi Arabia’s capital market continues to demonstrate strong momentum, with increasing investor participation and a dynamic regulatory environment that supports the sustainable growth of the financial market.” 

Hafiz also underlined the increasing global interest in the Kingdom’s market: “Saudi Arabia’s capital market continues to attract global demand, driven by its market depth, regulatory advancements, and strong investor participation.”

Agenda for 2025 Forum

The 2025 forum will feature three days of discussions, presentations, and networking.

Day one will commence at the KAFD Conference Center with an official opening and welcome address, followed by sessions including “The Annual Economic Sprint: Navigating New Economic Frontiers,” where experts will analyze macroeconomic trends and growth trajectories.

Additional key discussions will include “The Capital Horizon: The Middle East as the New Capital Market Nexus” and “The Capital Crystal Ball: The Future Landscape of Capital Markets.”

The inaugural day will conclude with the 2024 Saudi Capital Market Awards presentation, recognizing the achievements and contributions of market participants across various categories.

The second and third days will occur at the Four Seasons Hotel, featuring sessions on capital management systems, market insights, and investment strategies. Industry leaders from DirectFN, Awqaf Investment, Nahdi Medical Co., and Sahm Capital will discuss how companies adapt to economic shifts.

Key projects such as Liqaa and Edaa Connect will be highlighted, providing attendees with insights into emerging financial technologies and data-driven investment approaches.

The final day will focus on data access, financial analytics, and transparency in capital markets, featuring presentations from Wamid and S&P Global.

Additional discussions will explore global economic outlooks, fintech advancements, and the increasing significance of environmental, social, and governance considerations in investment strategies.

The gathering will feature a distinguished lineup of speakers, including high-ranking government officials, top executives, and global financial leaders. Among them is Khalid Al-Faleh, minister of investment of Saudi Arabia, who will provide insights into the Kingdom’s economic strategies and monetary policies.

The event will also welcome Poppy Gustafsson, the UK minister of investment, and Sarah Al-Suhaimi, chairperson of Saudi Tadawul Group, alongside Khalid Al-Hussan, CEO of the group.

International financial leaders such as Bonnie Y Chan, CEO of Hong Kong Exchanges and Clearing Limited, and Nandini Sukumar, CEO of the World Federation of Exchanges, will contribute their expertise on global market integration and regulatory advancements.

Additionally, key figures from major financial institutions, including Roland Chai, president of European Market Services at Nasdaq, and Scott O’Malia, CEO of the International Swaps and Derivatives Association, will share their perspectives on capital market trends and investment opportunities.

Highlights from the 2024 Forum

The Saudi Capital Markets Forum 2024 was one of the largest conferences in the sector globally, with 4,200 participants and 640 investors from 41 firms.

Themed “Powering Growth,” it emphasized Saudi Arabia’s role as a financial hub and provided a platform for major industry discussions and announcements.

The event facilitated 15,000 meeting requests between investors, issuers, and market participants, reinforcing its role as a premier networking and investment platform.

Several memorandums of understanding were signed, including collaborations to enhance environmental awareness, promote sustainability initiatives, and foster cultural development.

A significant announcement was made on the launch of a Social Responsibility Index in collaboration with the Ministry of Human Resources and Social Development, further strengthening the Kingdom’s commitment to responsible investing.

Regulatory advancements were a key focus, with discussions addressing the potential introduction of a framework for follow-on share offerings, signaling progressive reforms in the nation’s financial ecosystem.

Additionally, Saudi Tadawul Group revealed the first-ever international edition of the forum, CONNECT Hong Kong, which took place on May 9, 2024. The event focused on strengthening ties between Saudi Arabia and Asian capital markets, fostering international collaboration, and advancing market connectivity.

Over the past three years, the event has generated over 25,000 meeting requests, attracted over 10,000 attendees, and drew more than 4,000 investors.


Oil Updates — prices steady as market eyes Russia-Ukraine peace deal

Updated 17 February 2025
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Oil Updates — prices steady as market eyes Russia-Ukraine peace deal

SINGAPORE: Oil prices were little changed on Monday as investors eyed developments on a potential Russia-Ukraine peace deal that could ease sanctions disrupting global supply flows.

Brent crude futures was up 7 cents at $74.81 a barrel at 7:30 a.m. Saudi time, while US West Texas Intermediate crude was stable at $70.75 a barrel.

The market continued to keep an eye on progress of peace talks, after US President Donald Trump and his administration officials announced they had begun discussions with Russia to end the war in Ukraine.

“If negotiations lead to a resolution, more Russian barrels would enter global supplies, which could significantly impact oil prices negatively,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

“Despite bearish developments, the near-term for oil looks somewhat supported by positive signs on the demand side,” said Sachdeva, pointing to largely stable forecasts for oil demand.

US President Donald Trump said on Sunday he believes he could meet “very soon” with Russian President Vladimir Putin to discuss ending the war in Ukraine.

His comments come as the US and Russia are preparing for initial talks in Saudi Arabia in the coming days.

US Secretary of State Marco Rubio also said on Sunday Ukraine and Europe would be part of any “real negotiations” to end Moscow’s war, signalling that US talks with Russia this week were a chance to see how serious Putin is about peace.

Sanctions by the US and EU on Russian oil exports have curbed its shipments and disrupted seaborne oil supply flows.

Meanwhile, the risk of a global trade war is capping prices after Trump last week ordered commerce and economic officials to study reciprocal tariffs against countries that place tariffs on US goods and to return their recommendations by April 1.

US energy firms last week added oil and natural gas rigs for a third week in a row for the first time since December 2023, energy services firm Baker Hughes said in its closely followed report on Friday.

The oil and gas rig count, an early indicator of future output, rose by two to 588 in the week to Feb. 14.


IMF’s support for Egyptian economy to remain a priority, Georgieva says

Updated 17 February 2025
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IMF’s support for Egyptian economy to remain a priority, Georgieva says

RIYADH: The International Monetary Fund’s commitment to supporting Egypt’s economic reforms will remain a priority, despite external pressures, according to managing director Kristalina Georgieva.

Speaking on the sidelines of the AlUla Conference for Emerging Market Economies, the official reaffirmed her organization’s stance, emphasizing that political considerations fall outside its mandate.

This comes on the back of Egypt’s ongoing 46-month IMF loan program, which was initially approved in 2022 and expanded to $8 billion in 2024 amid an economic crisis marked by soaring inflation and acute foreign currency shortages. 

In an interview with Asharq, Georgieva acknowledged that Egypt faces economic headwinds, exacerbated by regional instability, including recent geopolitical tensions.

When asked whether the IMF would remain committed to the country regardless of any external pressures, Georgieva was firm in her response.

“We look at the macro position of a country, and we concentrate on the economy. There are matters of politics that are not in our domain. We are not the best institution to comment on that. So I can confirm that for the fund to support the Egyptian economy in the path of reforms, this is and will remain a priority,” she said.

Reflecting on the wider geopolitical situation facing Egypt, Georgieva said the country “has been going through some difficult times” because of the events in the region.

“We know that just the loss of revenues from the Suez Canal are hitting the fiscal position of Egypt significantly,” she said.

The IMF official highlighted the necessity of structural reforms aimed at enhancing competitiveness and strengthening private sector participation.

“I want to express my respect for some of the key brave steps that they have taken, for example, letting the exchange rate reflect market conditions, moving forward with a privatization program, being very keen on reducing subsidies so the country can be in a stronger position,” Georgieva said.

“Of course, the more the government does what is necessary, the stronger the position of Egypt. We are looking at the progress today. And, actually, our board will soon discuss the second review of the program,” she added.

Discussing the next steps in the IMF’s program with Egypt, Georgieva said: “We will be presenting the outcome of the review to our board of directors. There will be a discussion and a decision then taken by the board as management.”

She emphasized that the IMF has remained engaged with Egyptian authorities despite the rapidly changing global environment. “This is an environment of rapid change, not just in Egypt, everywhere in the world. We remain very engaged so we can get to a point of board discussion. And it is a matter of schedule,” she said.

Engagement with Syria

Addressing Syria’s engagement with the IMF, Georgieva noted that the institution’s involvement had been “unfortunately interrupted” since 2009.

“Even more unfortunate is what happened to the Syrian people. For far too long, they have suffered the consequences of a civil war. And we are very much praying that there would be a new page turned for Syria," she said.

Georgieva confirmed that engagement at the staff level has resumed to address significant gaps in economic data.

“There is already indication of the key institutions like the central bank that they would be looking for support to build institutional strength of Syria so it can function well for the benefit of the economy and the benefit of people,” she said.

When asked about the timeline for potential IMF assistance to the country, Georgieva emphasized that the speed of engagement depends on Syrian authorities.

“I was very encouraged to learn from my staff that first contacts have already taken place. And, as far as we are concerned, we stand ready to support Syria. It is a very important country for its own people, and you know very well it is also very important for the whole region. So as quickly as the conditions allow, that quickly we would move,” said the IMF official.

Organized by the IMF and Saudi Arabia, the high-level annual conference in AlUla brings together finance ministers, central bank governors, policymakers, and leaders from the public and private sectors. The two-day event serves as a platform to discuss global economic challenges and pathways for emerging markets.

During the interview, Georgieva highlighted the significance of the AlUla Conference, noting that it marks the first time emerging markets have gathered to discuss policy issues of shared interest.

“We have over 70 central bank governors, ministers of finance, and representatives of international organizations gathering here,” she said.

“The agenda is very interesting. All the topics you cover are being discussed today and tomorrow. Well, we hope it is a successful conference, and we are looking forward to the additions next year and so forth,” she added.