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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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Rotana to double Saudi-based workforce to 5k employees as it expands offering

Updated 5 sec ago
Reina Takla
Nadin Hassan
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Rotana to double Saudi-based workforce to 5k employees as it expands offering

Updated 5 sec ago
Reina Takla Nadin Hassan

RIYADH: Rotana Hotels is planning on more than doubling its workforce in Saudi Arabia to 5,000 staff as it expands its outlets to 15, the company’s CEO has told Arab News.

Speaking on the sidelines of the Future Hospitality Summit in Riyadh, Philip Barnes highlighted the diverse nature of hotels in terms of size and staffing, indicating that the current portfolio in the Kingdom employs around 2,000 people.

He said that between eight and nine hotels are under development and set to open within the next two to three years, and the firm has “a number of others coming.”

Barnes expressed his desire to expand the company’s presence in various parts of Saudi Arabia, not just in the holy cities of Madinah and Makkah.

Reflecting on the increase in workforce needed,  he said: “I think you’d be looking at 4,000 to 5,000 people by the time we get to that 15 hotel. 

“It ranges between 200 to 300 people per property as we go forward depending on the size of the property.”  

Rotana is seeking opportunities across a broader range of locations within Saudi Arabia, and Barnes believes that being a UAE-based company gives it an insight into the tourism landscape that other firms may lack.

“We see ourselves as being able to come into the Kingdom in a way that others can’t because we are recognized as that brand that is from the region. We can go into destinations that maybe aren’t the premier destinations as other people see them, everybody wants to be in Riyadh, everybody wants to be in Jeddah,” Barnes said. 

He added: “We have a lot of things happening, but we have further developments coming online in Egypt over the course of the next two years. We’ve got more coming on board in Qatar.” 

He also stated that the company is also exploring new territories, with recent moves into Pakistan, which Rotana views as a promising and emerging market 

Additionally, he further explained the group’s plans for expansion by exploring opportunities in Eastern Europe, though not on a large scale. Turkiye is also a focus, with two hotels opened in the past year and more development expected. 

“We’re also opening two hotels in London, not in central London. We’re opening one hotel in Kingston, which is a suburb of London, 20 minutes from downtown,” Barnes said. 

He continued: “I personally am hoping that that will then be a springboard into six or seven or eight other Centros around the UK in places like Liverpool or Leeds or, Manchester etc. because I see it as being a brand that has tremendous legs, and we've already got a number of those properties here in this part of the world.”

Topics: FHS24

Marriott International reveals that majority of its guests in Saudi Arabia are local 

Updated 43 min 48 sec ago
Reina Takla
REEM WALID 
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Marriott International reveals that majority of its guests in Saudi Arabia are local 

Updated 43 min 48 sec ago
Reina Takla REEM WALID 

RIYADH: Marriott International has revealed that the majority of the hotel’s guests in Saudi Arabia are local, indicating the importance of internal tourism in the Kingdom.

Speaking in an interview with Arab News on the sidelines of the Future Hospitality Summit, taking place in Riyadh from April 29 to May 1, Chadi Hauch, the hotel’s regional vice president of development, explained that the local market has driven leisure tourism in Saudi Arabia.

“At this stage right now, obviously the majority of the guests are local, but you have to take into consideration as well that, in Saudi, tourism has been majorly local,” Hauch said. 

He underscored that COVID-19 was a significant experience that opened the eyes of the Ministry of Tourism and the local Saudi market. 

“During COVID-19, when the whole country closed down, the Saudis were super excited to visit their own countries. They were pushed within their own country because they needed to get out of the cities such as Riyadh and Jeddah and they started visiting secondary cities like Abha,” the VP said. 

Consequently, Hauch added that this was when they noticed the nation had much more to offer. 

“But obviously as the destination grows and obviously this is this is what the government is pushing for, we will definitely start seeing international travelers trying to visit these destinations that is trying to position itself kind of like a Maldives destination,” he said. 

Hauch also explained that Marriott International currently has 38 open properties operating in the Kingdom and is planning for 40 more.

During the interview, the VP tackled how Marriott International Inc. and Al Qimmah Hospitality, a subsidiary of BinDawood Trading, signed an agreement to bring the JW Marriott brand to Jeddah.  

Located on the Jeddah Corniche, the hotel is expected to become a prime destination for luxury-seeking travelers who desire a waterfront escape, he underlined. 

“The beauty about this project is that it’s a mixed-use project that will have office space and will have retail. So, it’s quite a sizable project that will take a little bit of time. We expect hopefully to open in the next five to six years, depending on how fast the construction goes,” Hauch disclosed. 

The VP also highlighted the announcement a few days earlier that the company had signed an agreement with NEOM to open its second Ritz-Carlton Reserve in Saudi Arabia.     

The hotel will be located in Trojena, a year-round mountain destination situated in the country’s northwest region.   

The resort is expected to feature 60 expansive one- to four-bedroom villas. Plans also include a spa, swimming pools, and multiple culinary venues.  

Additionally, Hauch discussed how Marriott has two different main operating models. 

“We either do management agreements or we do franchisee agreements. Usually when we do operate these hotels in these models, we don’t get involved in the investment of the hotel. Usually, it is the owner who develops the hotel, and it depends on the location and, positioning of the hotel. These construction costs vary; they vary quite a lot between a five-star, a three-star, four-star or the luxury positioning,” the VP emphasized.  

More than 1,200 global investors are expected to have attended the FHS. The event, held at Al Faisaliah Hotel, focused on sustainable tourism and technology-driven hospitality under the theme, “Invest in Tomorrow: Today, Together.”   

Topics: FHS24 Marriott International Trojena

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Valor Hospitality ventures into Saudi Arabia with luxury hotel in Abha

Valor Hospitality ventures into Saudi Arabia with luxury hotel in Abha

Updated 01 May 2024
Reina Takla
MANAL AL-BARAKATI
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Valor Hospitality ventures into Saudi Arabia with luxury hotel in Abha

Updated 01 May 2024
Reina Takla MANAL AL-BARAKATI

RIYADH: Abha, a city in Saudi Arabia’s Asir region, is poised to welcome its first luxury lifestyle hotel through an upcoming deal with American operator Valor Hospitality. 

The company, which has overseen a portfolio of major brand hotels including Intercontinental, Marriott, Hilton, Radisson, Wyndham, and Hyatt, also aims to enter secondary and tertiary markets. While major brands concentrate on large-scale developments, Valor aims to cater to “outer regions.” 

Speaking to Arab News at the Future Hospitality Summit in Riyadh, Julien Bergue, the co-founder and managing partner of the company, highlighted that Valor has signed a deal to break ground on a “very different” upscale property in Abha, with details to be announced within a month. 

Bergue said: “Saudi Arabia is a very specific market. We’re very excited about Saudi Arabia. We’ve been excited about it for five years. We’re watching, we’re learning. We signed our first property in Abha in the Asir region. I’m very proud of it. But we will make it public in about a month’s time; it is the first lifestyle hotel in Abha.” 

Expressing excitement about the deal, he called it a “great asset, with a very great owner as well.”

“We’re excited about it. Our plans in Saudi Arabia is to tackle secondary and tertiary regions at the moment. While all the big brands are very focused on mega developments, we are helping now the outer region,” he added.  

The company’s future plans in the Kingdom also include collaborating with the Ministry of Tourism and the Tourism Investment Fund to “see how we can position better investment throughout the secondary tertiary region.” 

This includes rolling out a training academy for young Saudis in the sector, the executive said, with plans to launch within the next year and a half. 

The academy will leverage the operator’s expertise to bridge the gap between the upcoming surge in the hospitality industry and the human capital needed to fulfill those goals. 

“In a year and a half, we should be ready to roll out the academy here with a much deeper structure behind it. This is super important for the ecosystem of our own business in Saudi Arabia and for the other players in the space. So, it's a very good initiative,” he said. 

The executive revealed that they are planning to implement shorter programs. “So we are not aiming toward management training. We are going to really aim toward technical training skills, such as housekeeping and other core stuff required for running operations.” 

This training program aims to enroll a thousand participants every month through an “aggressive short-term program.” 

By 2030, Valor’s ultimate goal is to manage properties with 6,000 to 7,000 keys under their management. 

Topics: FHS24

Saudi airports awarded customer experience accreditation, elevating travel services

Updated 01 May 2024
Arab News
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Saudi airports awarded customer experience accreditation, elevating travel services

Updated 01 May 2024
Arab News

RIYADH: Customer service offerings at 16 Saudi airports have been recognized with a prestigious global award.

The Airports Council International’s Customer Experience Accreditation for 2024 has recognized facilities operated by the Kingdom’s Cluster2 Airports Co., which include Abha International Airport, Al-Jouf Airport, and Al-Qurayyat Airport.  

Additionally, they consist of Bisha Airport, Dawadmi Airport, and Hail International Airport, as well as King Abdullah bin Abdulaziz Airport, King Saud bin Abdulaziz Airport, and Najran Airport. 

“This accomplishment is not merely a testament to the quality and efficiency that we deliver; it also underscores our persistent dedication to enhancing the journey of each customer who passes through our gates,” the company said in an X post.

The ACEA program assists airports in enhancing customer experience management by guiding them through a comprehensive review and training process, which emphasizes stakeholder and employee engagement, as well as staff development, according to its website.

Other airports to receive this accreditation include Prince Abdul Mohsen bin Abdulaziz International Airport, Prince Nayef bin Abdulaziz Airport, and Rafha Airport.

Moreover, they include Sharurah Airport, Taif International Airport, Turaif Airport, and Wadi Al-Dawasir Airport.

The achievement of these airbases is a testament to the robust support and consistent oversight provided by the General Authority of Civil Aviation and the company, the Saudi Press Agency reported.

These airports have been acknowledged by ACI for their ongoing commitment to delivering exceptional services for travelers. 

Ali Masrahi, CEO of Cluster2 Airports Co., expressed his satisfaction with this achievement, emphasizing the company’s focus on three key areas: understanding customer needs, strategic planning tailored to traveler requirements, and continuous improvement through monitoring key performance indicators across all aspects of the passenger.

Masrahi emphasized his company’s dedication to excellence and improving the airport travel experience.

The company added in its post that three of its airports received the same accreditation in 2023: “Today, we are proud to witness this number grow to encompass more of our airports, marking a remarkable achievement that underscores the progress and development we aim to accomplish.”

The firm further explained that obtaining accreditations from the ACI is the outcome of the team’s persistent efforts and unwavering dedication to ensuring an unforgettable travel experience.

ACI’s first Asia-Pacific and Middle East office was inaugurated in Riyadh in September 2023. Saudi Arabia’s Transport Minister and General Authority of Civil Aviation Chairman Saleh Al-Jasser, dignitaries and top officials from 49 countries attended the event.

ACI is an organization of airport authorities that aims to unite industry practices for airport standards by working with governments, regional members, experts, and international groups.

Topics: International Airport Council Cluster2 Airports Co Saudi aviation

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Accor to build 45 new hotels in Saudi Arabia by 2030: CEO

Updated 01 May 2024
Reina Takla
Miguel Hadchity
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Accor to build 45 new hotels in Saudi Arabia by 2030: CEO

Updated 01 May 2024
Reina Takla Miguel Hadchity

RIYADH: French multinational hospitality company Accor is set to expand its hotel portfolio in Saudi Arabia with 45 new establishments by 2030, as revealed by the regional CEO.

In an interview with Arab News, Duncan O’Rourke underscored the company’s dedication to the Kingdom’s vibrant hospitality sector and its aspirations embodied by Vision 2030.

O’Rourke said: “Saudi is an extremely important theater for us to play also because of what is happening, we are very proud to be part of this journey, this vision of 2030.” 

Reflecting on the firm’s substantial presence in Saudi Arabia, O’Rourke highlighted that while the company currently has 41 hotels in the Kingdom, it plans to add more – initially claiming there would be another 40, before later revealing it be 45, with an additional 9,800 rooms by 2030.

Commenting on Accor’s participation in the Future Hospitality Summit, the CEO said that it aims to actively share its expertise, learn from industry peers, and collaborate on initiatives that will shape the future of the hospitality sector.

With a historical foothold in the Kingdom, the CEO reminisced: “Accor has a very long history in Saudi, a very established history.”

He added: “We are very excited to be here, me personally, having lived here 22 years ago and see the growth and the challenges.” 

O’Rourke added: “One of the things we noticed tremendously was talent, and getting people to work in the hotels. Opening the hotels is one thing, but we need the local talent as well.” 

He highlighted Accor’s partnership with the Ministry of Tourism and Education to nurture Saudi talent for the hospitality industry, saying: “We signed a partnership, which we were really excited about with the Minister of Tourism and Education, so we signed that partnership to be able to educate on all different levels, local people, to work in the hotels as well.” 

In line with Accor’s commitment to nurturing local talent, O’Rourke explained that the firm’s academies are based worldwide and driven out of Paris, saying: “It’s been very famous how we’ve done that and trained and coached, but we felt that here with this tremendous growth in the speed of that growth and the fact that we really wanted to get local talent working.” 

Diving more into the “Tamayyaz by Accor” program, the CEO explained that the educational process goes from an entry-level to a more senior position.

Accor and the Ministry of Tourism in Saudi Arabia have signed this partnership, which is dedicated to nurturing and developing Saudi talent in the hospitality industry. 

O’Rourke told Arab News that they’re starting with a modest number of around 250 trainees, but that’s “quickly going to go up to over 3,000 continuously going through the process there, and so every process, 3,000 more going through.”

Expanding beyond major urban centers, O’Rourke emphasized “it’s not just in Riyadh, or in Jeddah, but in the secondary and third cities as well,” signaling Accor’s commitment to broadening its footprint across the Kingdom.

In a discussion about Accor’s varied brand lineup, he explained: “We split our luxury lifestyle, so we’re one of the largest luxury players in the market, the largest lifestyle player in the market, and then we have that premium midscale economy.”

Accor is the largest hospitality operator in the Holy Cities, with 13 hotels encompassing 11,900 rooms and a pipeline of six hotels with 1,700 rooms. 

The firm has significantly contributed to developing the holy destination of Makkah, providing high-quality hospitality with direct access to the Haram. 

Accor currently operates 13 brands and more than 16,000 rooms in Saudi Arabia, ranging from premium to economy segments, including luxury brands and Ennismore’s lifestyle collective. With leading names like Novotel, Swissotel, and Pullman, it’s a top hospitality provider offering diverse services and experiences.

He added: “We go with all those brands there in those resorts, not in just major cities, with Banyan Tree, Sofitel, and then, of course, Fairmont Raffles and the rest of the traditional brands as well.”

O’Rourke highlighted the necessity of employing locals, saying: “At the Novotel hotel, which we opened tonight, that’s the first female GM (general manager) in Saudi and so we are very proud of this diversification and giving opportunities to everybody there.”

The CEO added: “Being able to be part of this growth industry in terms of opening hotels, but also in educating and watching talent grow and one day moving from Saudi out and using that talent abroad, is also very exciting.” 

In terms of partnerships, O’Rourke emphasized Accor’s strategic approach to collaborations that benefit both parties and local communities.

 “In any partnership which we do with our core, we want somebody that embraces our values. We call them partners, we want to synergize with partners and then grow where it makes benefit for them, for us and the communities as well,” he said.

Reflecting on market trends, O’Rourke said: “Where we see the secondary cities the most traction we are in that sense there is coming from the mid-scale and the premium midscale economy,” highlighting the burgeoning demand in these segments.

“Where we do see a difference and more and more coming through is that leisure markets both locally, so Saudis traveling in Saudi, but also from the GCC coming through there,” the CEO added acknowledging the rise of leisure travel.

As Saudi Arabia continues its remarkable growth trajectory, O’Rourke expressed optimism, asserting: “We stay focused on our footprint. We have a very aggressive expansion plan to go from 44 to another 40 by 2030 is already aggressive.”

He concluded Accor’s commitment to delivering on its expansion goals while fostering talent development in the Kingdom, saying: “We continue to drive forward and make sure that we are not only opening hotels with the right brand, right partners, but then being able to really deliver on what we promised.” 

Topics: FHS24 Accor Accor hotels hospitality

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