Saudi Arabia’s 6-point plan to jumpstart global economy

The plane sets out a series of policy recommendations to counter the effects of the disease which threaten to spark the deepest economic recession in nearly a century. (Shutterstock)
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Updated 07 July 2020

Saudi Arabia’s 6-point plan to jumpstart global economy

  • Policy recommendations to G20 aim to counter effects of pandemic

DUBAI: Saudi Arabia, in its capacity as president of the G20 group of nations, has unveiled a six-point business plan to jump start the global economy out of the recession brought on by the COVID-19 pandemic.

Yousef Al-Benyan, the chairman of the B20 business group within the G20, told a webinar from Riyadh that the response to the pandemic -— including the injection of $5 trillion into the global economy — had been “reassuring.”

But he warned that the leading economies of the world had to continue to work together to mitigate the effects of global lockdowns and to address the possibility of a “second wave” of the disease.

“Cooperation and collaboration between governments, global governance institutions and businesses is vital for an effective and timely resolution of this multi-dimensional contagion transcending borders,” Al-Benyan said.

“The B20 is strongly of the view there is no alternative to global cooperation, collaboration and consensus to tide over a multi-dimensional and systemic crisis,” he added.

The six-point plan, contained in a special report to the G20 leadership with input from 750 global business leaders, sets out a series of policy recommendations to counter the effects of the disease which threaten to spark the deepest economic recession in nearly a century.

The document advocates policies to build health resilience, safeguard human capital, and prevent financial instability.

It also promotes measures to free up global supply chains, revive productive economic sectors, and digitize the world economy “responsibly and inclusively.”

In a media question-and-answer session to launch the report, Al-Benyan said that among the top priorities for business leaders were the search for a vaccine against the virus that has killed more than half-a-million people around the world, and the need to reopen global trade routes slammed shut by economic lockdowns.

He said that the G20 response had been speedy and proactive, especially in comparison with the global financial crisis of 2009, but he said that more needed to be done, especially to face the possibility that the disease might surge again. “Now is not the time to celebrate,” he warned.

“Multilateral institutions and mechanisms must be positively leveraged by governments to serve their societies and must be enhanced wherever necessary during and after the pandemic,” he said, highlighting the role of the World Health Organization, the UN and the International Monetary Fund, which have come under attack from some world leaders during the pandemic.

Al-Benyan said that policy responses to the pandemic had been “designed according to each country’s requirements.”

Separately, the governor of the Saudi Arabian Monetary Authority said that it was “too early” to say if the Kingdom’s economy would experience a sharp “V-shape” recovery from pandemic recession.


Nationalization rate in Saudi private sector increases

Updated 25 October 2020

Nationalization rate in Saudi private sector increases

  • Of the total workforce registered with GOSI, 66.74 percent are males and 33.26 percent females

RIYADH: Saudi Arabia’s private sector witnessed a rise in the nationalization rate during the third quarter of the current fiscal, according to a report.

The report, issued by the National Labor Observatory (NLO), an affiliate of the Human Resources Development Fund, shows a 21.54 percent increase in the nationalization rate compared to 20.4 percent during the same period in 2019.

There has been a steady rise in the nationalization rate in the Saudi private sector. According to NLO statistics, the number of Saudis who work in the private sector and are registered with the General Organization for Social Insurance (GOSI) has risen to 1,758,558 in Q3 2020, compared to 81,430 in Q2 2020. Of the total workforce registered with GOSI, 66.74 percent are males and 33.26 percent females.

Meanwhile, the Eastern Province topped the list of the regions with the highest nationalization at 25.16 percent, followed by the Riyadh region (21.89 percent), the Makkah region (21.47 percent), the Madinah region (19.27 percent) and Asir (17.85 percent).

NLO’s strategic objectives include the provision of accurate and reliable data to all stakeholders, offering analytics and feedback for labor partners, and building a network of experts and specialists to overcome labor challenges.