TVTC zeroes in on tourism with more than 6k Saudis training for roles in key Vision 2030 sector

Saudi Arabia's Technical and Vocational Training Corp. has announced it is currently training 6,189 people in preparation for jobs in the tourism and hotel industries. (Shutterstock)
Short Url
Updated 28 November 2022
Follow

TVTC zeroes in on tourism with more than 6k Saudis training for roles in key Vision 2030 sector

RIYADH: More than 6,000 Saudis are currently being trained up for technical roles in the Kingdom’s growing tourism industry, according to the government agency leading the charge.

Saudi Arabia's Technical and Vocational Training Corp. has announced it is currently training 6,189 people in preparation for jobs in the tourism and hotel industries.

The Kingdom’s tourism sector continues to grow, with the Kingdom expecting to attract 100 million annual visitors and creating one million jobs by 2030.

TVTC spokesperson Fahad Alotaibi said the entity focuses on designing and providing specialized training programs to train citizens to work in this sector and lead its facilities through diversified training programs in the tourism and hospitality fields.

TVTC's aims align with Saudi Vision 2030, under which efforts are exerted to cut the unemployment rate in the Kingdom from 11.6 percent to 7 percent by 2030.

In August this year, TVTC announced that it had received more than 230,000 trainees — new starters and returnees — in over 260 training facilities and partnership institutes distributed throughout the Kingdom.

To achieve its Vision 2030 goals, Saudi Arabia is not only encouraging the recruitment of nationals to private sector jobs, but is also encouraging adequate investment in their future to ensure their retention by employers as well as their contribution to a vibrant and diverse economy.

Saudization, officially known as the Saudi nationalization scheme, or Nitaqat, is considered a crucial step towards economic success.

Saudi Arabia launched the ‘Saudization’ labor market strategy to enhance the economic participation of its citizens, with the aim of reaching 60 percent by 2030.

Although the process of Saudization has been going on since 1985, major regulatory and economic reforms have accelerated in recent years under the Vision 2030 agenda, with the aim of increasing the participation of young Saudis in the economy, promoting non-oil sectors and improving the overall quality of life.

According to Saudi Arabia's Central Department of Statistics and Information, the unemployment rate in the Kingdom decreased to 5.80 percent in the second quarter of 2022 from 6 percent in the first quarter of 2022.

Vision 2030 promotes Saudi women as an important part of the Kingdom’s strength. It aims to develop their talents, invest their energies, and provide them with the right opportunities to build their futures, contributing to the development of society.

Saudi women now comprise 33.6 percent of the Saudi workforce as of March 2022, according to the General Authority for Statistics. That figure is up from 17.4 percent just five years ago.

The unemployment rate of women was the lowest in 20 years as of the first quarter of 2022, falling to 20.2 percent from 22.5 percent during the fourth quarter of 2021.


Saudi financial wealth reaches $1.25tn as asset mix shifts, BCG says

Updated 10 sec ago
Follow

Saudi financial wealth reaches $1.25tn as asset mix shifts, BCG says

RIYADH: Saudi Arabia’s financial wealth rose to $1.25 trillion in 2024, up 4.4 percent from a year earlier, underscoring steady balance-sheet expansion as the Kingdom’s investor base becomes more diversified, a new analysis showed. 

Financial assets increased from $1.2 trillion in 2023, while total net wealth climbed to a record $3.7 trillion by the end of 2024, Boston Consulting Group said in its latest Global Wealth Report. 

The analysis added that real assets represent the largest component of Saudi Arabia’s overall wealth and are expected to reach $2.94 trillion by 2029, marking a compound annual growth rate of 1.3 percent. 

Earlier this month, the World Bank underscored Saudi Arabia’s financial resilience and upgraded its 2025 economic growth forecast for the Kingdom to 3.8 percent from an earlier estimate of 3.2 percent, citing renewed momentum in both oil and non-oil sectors.

In October, the International Monetary Fund also raised its economic growth forecast for the Kingdom to 4 percent for both 2025 and 2026.

Bhavya Kumar, managing director and partner at BCG, said: “Saudi Arabia’s wealth ecosystem is at an inflection point. With financial wealth reaching $1.25 trillion and real assets maintaining stability at $2.76 trillion, we’re witnessing the maturation of a sophisticated investor base.” 

BCG also said Saudi Arabia’s liabilities increased by 6.8 percent to $307 billion in 2024, helping to keep the Kingdom’s overall wealth growth balanced. 

The Kingdom’s investable wealth is projected to grow from $1.04 trillion in 2024 to $1.31 trillion by 2029, representing a compound annual growth rate of 4.7 percent. 

By contrast, non-investable wealth is expected to expand at a robust 5.3 percent CAGR, reflecting continued economic development and infrastructure investment. 

According to the report, equities and currency and deposits were the dominant asset classes in 2024, valued at $339 billion and $300 billion, respectively. 

BCG said equities are expected to grow to $398 billion by 2029, while currency and deposits are projected to reach $414 billion. 

Bonds, though relatively small at $9 billion in 2024, are expected to rise to $13 billion by 2029, representing a CAGR of 7.2 percent. 

Life insurance and pensions were valued at $99 billion in 2024 and are projected to reach $140 billion by 2029.

“The 6.6 percent projected growth in currency and deposits signals increasing liquidity preferences, while the underdeveloped life insurance and pensions sector — growing at 7.1 percent annually — represents a massive opportunity for financial services providers who can adapt their offerings to meet the evolving needs of Saudi investors,” said Kumar. 

The report noted that while wealth continues to grow steadily in Saudi Arabia, the drivers of that expansion are shifting, with significant implications for firms operating in the sector. 

BCG said many firms have traditionally leaned on market performance, mergers and acquisitions, and adviser hiring.

“Saudi Arabia’s wealth management landscape is experiencing unprecedented transformation. The key to success today is no longer merely about gaining market exposure or hiring senior bankers; it’s about fostering internal growth,” said Lukasz Rey, managing director and partner at BCG.

Rey added: “Companies that strategically prioritize adviser development, strengthen their brand identity, and embrace next-generation client strategies are outpacing their competitors — not only in revenue generation but also in achieving higher valuation multiples.”