RIYADH: Saudi Arabia stepped up localization efforts in the first quarter as the proportion of Saudis in the Kingdom’s workforce rose to 22.75 percent.
That compares with 20.37 percent during the same period a year ago, according to the National Labor Observatory (NLO) of the Human Resources Development Fund (Hadaf).
It represents a steady increase from 2017 when the localization rate was 16.46 percent, rising to 18.61 percent a year later and 20.21 percent in 2019, SPA reported.
Gulf states are stepping up efforts to reduce reliance on expatriates and provide more jobs for citizens as part of wider economic reform efforts aimed at reducing reliance on the oil industry. That process is especially visible in Saudi Arabia, the region’s largest economy.
In a wide-ranging TV interview to mark the fifth anniversary of the Saudi Vision 2030 strategy, Crown Prince Mohammed bin Salman on Tuesday highlighted the Kingdom’s progress in tackling unemployment.
The crown prince said that unemployment in Saudi Arabia at the beginning of Vision 2030 was about 14 percent.
“In the first quarter of 2020 we reached 11 percent. Because of the pandemic unemployment increased. We were the sixth best country in the G20 in terms of performance and unemployment, but in the last part of the fourth quarter of 2021 we were back to 12 percent,” he said, adding that figure would continue to fall as more Saudis enter the workforce.
The new NLO data reveals that the Eastern Region achieved first place in job localization efforts with a rate of 25.7 percent.
It was followed by Riyadh at 24.5 percent and Makkah at 21.4 percent.
Madinah and Asir rounded out the top five regions for localization at 19.3 percent and 17.5 percent respectively.
Saudis claim bigger share of workforce in first quarter
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Saudis claim bigger share of workforce in first quarter
- The crown prince said that unemployment in Saudi Arabia at the beginning of Vision 2030 was about 14 percent
UAE bank assets rise 0.8% to $1.43tn as credit expands: CBUAE data
RIYADH: UAE bank assets rose 0.8 percent in November to 5.25 trillion Emirati dirhams ($1.43 trillion), extending growth in the sector as credit and deposits continued to expand, central bank data showed.
Gross banking assets increased from 5.2 trillion dirhams in October, according to the Central Bank of the UAE’s Monetary and Banking Developments report. Gross credit rose 0.7 percent to 2.53 trillion dirhams, supported by growth in both domestic and foreign lending.
The domestic expansion included a 0.4 percent rise in credit to the private sector, aligning with the UAE’s “Projects of the 50” agenda to stimulate private investment and reduce the economy's reliance on hydrocarbons.
In its latest report, CBUAE stated: “Gross credit increased due to the combined growth in domestic credit by 9 billion dirhams and in foreign credit by 8.7 billion dirhams.”
It added: “The growth in domestic credit was due to the increases in credit to the government sector by 2.6 percent, in the private sector by 0.4 percent, and in credit to the non-banking financial institutions by 3.6 percent, overshadowing the decrease in credit to the public sector (government-related entities) by 1 percent.”
A notable shift was observed in the money supply data. While the narrow money supply aggregate M1 decreased by 1.7 percent due to a drop in monetary deposits, broader measures saw significant growth.
The report stated: “The money supply aggregate M2 increased by 1.5 percent,” primarily due to a substantial 58.2 billion dirhams growth in quasi-monetary deposits.
Similarly, M3, which includes government deposits, also rose by 1.5 percent, “amplified by 8.6 billion dirhams increase in government deposits.”
The simultaneous fall in M1 and rise in M2 and M3 suggests a liquidity transformation within the system, with money moving from checking accounts into savings, time deposits, and government accounts, which can be used for longer-term lending.
The foundation of the banking system also strengthened, as “the monetary base increased by 1.7 percent.” This growth was driven by the growth in reserve account by 21.5 percent, in currency issued by 2.6 percent, and in monetary bills and Islamic certificates of deposit by 8.8 percent.
On the deposits side, the report noted that “banks’ deposits increased by 1 percent,” totaling 3.23 trillion dirhams.
This growth was “driven by the growth in resident deposits by 1.4 percent,” which reached 2.97 trillion dirhams. Within resident deposits, the private sector led with a 1.2 percent increase, while deposits in government-related entities saw a significant 3 percent rise.
