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
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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

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.


Saudi crowdfunding funding hits $800m a year: top official 

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Saudi crowdfunding funding hits $800m a year: top official 

RIYADH: Crowdfunding has emerged as one of the fastest-growing financial channels in Saudi Arabia, with platforms doubling in size annually and surpassing SR3 billion ($800 million) in capital last year, according to a top official. 

During a panel discussion at the Kingdom’s premier tech conference, LEAP 2025, Mohammed El-Kuwaiz, chairman of the Capital Market Authority, stated the financing landscape has also expanded significantly, moving beyond traditional bank loans and initial public offerings. 

“Whether we look at debt crowdfunding or equity crowdfunding, these platforms have actually been doubling in size every year for the past three years,” he said, highlighting their growing role in the country’s evolving financial ecosystem. 

Alongside crowdfunding, Saudi Arabia has introduced a range of new financing options to support businesses at different stages of growth. 

“We used to think of financing as one of two routes, either bank financing or IPOs. Today, that menu includes a plethora of investment and financing options,” El-Kuwaiz said. He highlighted that the country now has eight distinct investment and financing stages, with half of these introduced in recent years. 

The rapid rise of crowdfunding is part of a broader transformation in the Kingdom’s capital markets, which have expanded significantly since the Vision 2030 economic diversification plan was unveiled in 2016.

“The story of capital markets and how they serve entrepreneurs is very much running in parallel with the growth that we’ve been seeing in LEAP. We have moved from being the 25th or 26th largest market in the world to now being one of the top 10 largest markets in the world,” he said. 

The regulatory environment has also evolved to support business formation, with changes to the country’s corporations law allowing for multiple classes of shares and various investor rights. 

“Most startups and most founders require a degree of flexibility that our former corporations’ law did not allow them to serve,” El-Kuwaiz said, citing features such as drag-along and tag-along rights that were previously unavailable. 

Exit strategies for startups have expanded as well, with IPO activity accelerating and mergers and acquisition regulations being streamlined. 

“We moved from doing something like 10 listings a year to, in the last couple of years, doing in excess of 40 IPOs a year, and more than 50 percent of these listings are actually small and medium businesses. Many of them are actually venture-backed,” El-Kuwaiz said. 

However, mergers and acquisitions remain the most common exit strategy, with regulatory updates in 2017 and 2018 fueling a surge in M&A transactions. 

“As a result of that first rewrite, we have actually seen in the last five or six years more M&A activity than since we established the CMA 15 years ago,” he added. 

Saudi Arabia’s capital market transformation has also made it an increasingly attractive destination for international entrepreneurs. 

“We have seen more and more from outside of the region seriously considering relocating to Saudi Arabia because of the market, because of these regulatory developments, and this potential to exit,” the CMA said.

Debt markets have also played a crucial role in financing businesses, surpassing equity markets in capital raised since 2021. 

El-Kuwaiz added that since then, “our debt capital market has been raising more capital for businesses and governments than the equity capital market, both in primary and secondary.” 

He also underlined that Saudi Arabia is developing its private credit sector alongside its debt market, with expectations that the latter will grow faster in the near term due to its liquidity and traceability advantages. 

El-Kuwaiz emphasized that the Kingdom’s efforts to enhance business formation, financing, and exit opportunities are creating a model that extends beyond national borders. 

“When we first started, we thought that solving the entrepreneurial problem was a Saudi-specific problem,” he said, adding: “But as we have evolved, we recognize that if we solve this problem, we can actually solve this problem for all entrepreneurs — whether in Saudi, the Gulf region, or the broader Middle East.”


Pakistan says IMF ‘on board’ over $7 billion bailout targets

Updated 11 min 16 sec ago
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Pakistan says IMF ‘on board’ over $7 billion bailout targets

  • The statement comes days before the arrival of an IMF team for the first review of the facility
  • IMF bailouts are critical for Pakistan which narrowly avoided a sovereign default in June 2023

KARACHI: Pakistan has taken the International Monetary Fund (IMF) on board over its targets under a $7 billion loan program it secured in September, a finance ministry official said on Tuesday, days before the arrival of an IMF mission in the South Asian nation for the program’s first review.
A successful review, expected later this month or in early March, would see the Washington-based lender release around $1 billion tranche to cash-strapped Pakistan, which seeks to boost its foreign exchange reserves to achieve the IMF’s threshold of three months import cover.
IMF bailouts are critical for Pakistan which narrowly avoided a sovereign default in June 2023 by clinching a last-gasp, $3 billion IMF loan and is currently navigating a tricky path to economic recovery.
“We are on track,” Khurram Schehzad, an adviser at the Pakistani finance ministry, told Arab News. “The IMF is on board on the targets and benchmarks that we have achieved as well as only a few we are chasing. We are fully prepared to go into the review process.”
The statement is expected to allay investor concerns about Pakistan meeting the IMF’s conditions to reform its economy by cutting on energy subsidies, broadening the tax net to agriculture, real estate and retail sectors, and privatizing loss-making, state-owned enterprises like the Pakistan International Airlines (PIA).
“We are working on the taxation side by bringing in the under-taxed and non-taxed sectors into the net by broadening, deepening and widening it,” Schehzad said.
Provincial governments in Pakistan’s Sindh, Punjab, Khyber Pakhtunkhwa and Balochistan provinces have recently enacted laws to impose taxes on farm incomes, fulfilling one of the IMF’s requirements.
Since averting an imminent default on its external debt in 2023, Pakistan is now keeping its current account in check primarily through containing imports. The country’s exports rose 10% to $19.6 billion in the last seven months till January, while it is keeping tabs on imports that increased by 7% to $33 billion, according to Pakistan Bureau of Statistics.
“Our balance of payment position is going to be manageable this year,” said Schehzad, who believes population growth and climate change are the two biggest challenges facing Pakistan’s economy.
The country achieved a current account surplus of $1.2 billion from July 2024 till December 2024 and is expecting to receive a record $35 billion worker remittances by June 2025. It expects IT exports to increase to $4 billion this year.
As jailed former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party carries out countrywide protests to demand the return of its “stolen” mandate in the last general election, PM Shehbaz Sharif’s government is trying to shore up the fragile economy, which Schehzad said is expected to expand in the range of 3% to 3.5% this financial year ending in June.
Pakistan’s central bank has slashed the interest rate by a cumulative 1,000 basis points to 12% since June to spur economic growth, thanks to the easing inflation that rose 2.41% last month, the lowest in more than nine years.
“We are keeping an eye on the prices of all essential items that should be reflective of the prevailing inflation numbers, so to close the gap between numbers and on-ground prices,” the finance adviser said.
The pace of price hike is expected to ease further in the months ahead, which will create more room for the central bank to decrease the rate of bank borrowing.
“We are giving priority to long-term sustainability of the economy over short term reliefs,” Schehzad said.
The Pakistani government is striving to turn the hard-earned economic stability with fiscal and external consolidation into a growth that is export-led and driven by productive and efficient investments primarily by the private sector, according to the finance adviser.
The government is working to break the so-called boom-and-bust cycle Pakistan’s economy has been “suffering from in the past many years now” and targets 6% growth and beyond by 2029, he added.


Saudi Arabia unveils $1.78bn investments to advance AI, digital talent

Updated 40 min 44 sec ago
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Saudi Arabia unveils $1.78bn investments to advance AI, digital talent

RIYADH: Investments totaling $1.78 billion marked the third day of the LEAP 2025 Tech Conference in Riyadh, aimed at accelerating artificial intelligence and digital talent development.

Industry leaders, investors, and policymakers have launched several initiatives to drive digital transformation in Saudi Arabia, aligning with Vision 2030 to position the Kingdom at the forefront of the digital age.

Among these, Equinix, a global leader in digital infrastructure, announced a $1 billion investment in data centers nationwide, starting with a 100-megawatt facility to serve hyperscale and retail customers in the region.

“Equinix has been at the center of technological advancements for 26 years. Our global interconnection hubs allow data to move seamlessly worldwide, and now, we are expanding further into Saudi Arabia,” said Judith Gardner, vice president of growth and emerging markets at Equinix.

Saudi Arabia’s Communications, Space, and Technology Commission has launched Cohort 3 of its innovative regulatory sandbox program, aimed at empowering innovators and startups to test new technologies. 

Abdulaziz Al-Batli, general manager of technology enablement at CST, emphasized the commission’s approach, which balances ample space for innovation with necessary regulatory oversight.

To further solidify Saudi Arabia’s position as a regional technology and innovation hub, DAMAC’s EDGNEX unveiled plans to expand its investments in data centers for cloud computing and AI across the Kingdom. 

The company aims to develop a 500-megawatt capacity by 2030, aligning with the country’s broader digital transformation goals. 

This initiative complements the wave of investments announced at LEAP 2025, reinforcing Saudi Arabia’s commitment to enhancing its digital infrastructure and fostering an AI-driven economy.

Strengthening AI, startups, and emerging technologies

Several investment funds have pledged a total of $695 million to support startups specializing in AI, gaming, and innovative tech solutions, including:

  • JOA Capital and Buidlnow: $80 million AI-powered infrastructure fund.
  • Ula Capital: $75 million data-driven fund for AI and deep tech startups.
  • Sanabil Accelerator by Orbit: $60 million fund for over 200 early-stage tech startups.
  • Sharaka Financial: $30 million fund for startups in the MENA region.
  • MERIT and BRKZ: Secured funding rounds totaling $28 million and $22 million, respectively.
  • Torod: The largest Series A funding round for logistics tech in MENA, led by WAED.

These investments bring the Kingdom’s total venture capital commitments announced at LEAP to nearly $700 million, with close to $100 million dedicated to startup investments.

AI innovations and talent development

WhiteHelmet introduced ASIF, the first AI-powered construction agent designed to revolutionize the building industry by optimizing speed and efficiency.

Additionally, Microsoft announced the establishment of the Kingdom’s first Data Center Academy in partnership with the National IT Academy.

“This initiative aligns with Microsoft’s mission to provide cutting-edge digital skills and training, ensuring Saudi Arabia’s workforce is ready for the AI-driven future,” said Zainab Al-Amein, vice president of national digital transformation at Microsoft.

Similarly, Huawei, in collaboration with the Ministry of Communications and Information Technology, unveiled plans for a Future Skills Center to enhance AI expertise in the region. 

Accenture and Atomcamp also launched the first AI Academy in Saudi Arabia, aiming to train 20,000 Saudi professionals by 2030.

Expanding space and digital economy

CST Gov.  Mohammed Al-Tamimi, highlighted key themes shaping LEAP 2025, including AI, cloud computing, quantum technologies, and the intersection of space and the digital economy.

“We are witnessing the second phase of our space track, with over 20 events dedicated to discussions on space competition and the connection between space and the digital economy,” said Al-Tamimi.

Gaming industry

The gaming industry also saw significant investments, with HGM announcing a $300 million commitment to bring top gaming titles to Riyadh. The Kingdom’s first major military shooter game is set to launch in October, developed by a team with experience in franchises like Call of Duty.

With these major announcements, LEAP 2025 continues to reinforce Saudi Arabia’s position as a global technology and innovation hub. The ongoing event is underscoring the country’s efforts to drive digital transformation, AI advancements, and economic diversification in line with Vision 2030.


Closing Bell: Saudi main index edges down to close at 12,424

Updated 11 February 2025
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Closing Bell: Saudi main index edges down to close at 12,424

RIYADH: Saudi Arabia’s Tadawul All Share Index ended Tuesday’s trading in red, as it shed 47.40 points or 0.38 percent to close at 12,424.32. 

The total trading turnover of the benchmark index was SR6.36 billion ($1.70 billion), with 69 stocks advancing and 155 retracting. 

Nomu, Saudi Arabia’s parallel market, gained 143.56 points to close at 31,570.32 while the MSCI Tadawul Index edged down by 0.46 percent to 1,543.86. 

The best-performing stock on the main market was Raoom Trading Co. The firm’s share price soared by 5.59 percent to SR189.

The share price of Fawaz Abdulaziz Alhokair Co. increased by 5.38 percent to SR15.68. 

Zamil Industrial Investment Co. also saw its stock price climbing by 4.91 percent to SR36.35. 

Conversely, Tihama Advertising and Public Relations Co.’s share price declined by 3.4 percent to SR16.50. 

On the parallel market, Mohammed Hadi Al Rasheed and Partners Co. was the top gainer, with its share price increasing by 6.98 percent to SR138.

On the announcements front, Saudi Electricity Co. said that it commenced issuing a dollar-denominated, senior secured sukuk on Feb.11 with the offering set to run until Feb.12. 

SEC, in a statement to Tadawul, said that the sukuk has a minimum subscription level of $200,000, while the final issuance size will be determined based on market conditions. 

The company added that the offering is being conducted through a special-purpose vehicle and is available to qualified investors within the Kingdom and abroad. 

SEC’s share price dropped by 0.46 percent to SR17.22. 

Hedab Alkhaleej Trading Co. has set the price range for its initial public offering on Nomu at SR48 to SR52 per share, the firm’s financial adviser and lead manager Yaqeen Capital said. 

According to a Tadawul statement, the offering comprised of 800,000 ordinary shares representing 10.67 percent of the issued share capital of the company after the IPO. 

The book-building period for qualified investors will run on Feb. 16-20.


PIF forum in Riyadh to drive private sector growth with new partnerships, investments

Updated 11 February 2025
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PIF forum in Riyadh to drive private sector growth with new partnerships, investments

  • Event to catalyze strategic alliances and expand economic opportunities in key industries

RIYADH: Saudi Arabia’s Public Investment Fund is set to unveil new private sector partnerships and investment initiatives at its annual Private Sector Forum, scheduled for Feb. 12-13 in Riyadh.  

The event, which will bring together more than 90 PIF-backed companies, seeks to strengthen supply chains, boost local manufacturing, and accelerate economic diversification under Vision 2030. 

Now in its third year, the forum will spotlight business opportunities with the sovereign wealth fund and its portfolio companies, identify potential prospects for investors and suppliers, and expand avenues for collaboration. It will also serve as a bridge between PIF, its portfolio companies, and the private sector, reinforcing localization efforts. 

The event aligns with Saudi Arabia’s push to boost private sector participation in its economic diversification efforts, with the wealth fund playing a key role in this transformation. 

Established in 1971, the fund manages assets estimated at $930 billion and is central to Saudi Arabia’s strategy to reduce reliance on oil, with investments spanning technology, tourism, and infrastructure both locally and globally. 

The forum provides a platform for engagement, emphasizing partnership opportunities between PIF, its portfolio companies, and the local private sector.  

It also offers networking opportunities and direct access to supplier registration with portfolio firms. Additionally, participants can learn about PIF programs designed to support the private sector. 

FASTFACTS

Established in 1971, the fund manages assets estimated at $930 billion and is central to Saudi Arabia’s strategy to reduce reliance on oil, with investments spanning technology, tourism, and infrastructure both locally and globally. 

The event, which will bring together more than 90 PIF-backed companies, seeks to strengthen supply chains, boost local manufacturing, and accelerate economic diversification under Vision 2030. 

The forum is expected to draw over 12,000 visitors, including more than 1,000 C-level executives from the public and private sectors. It will feature over 120 speakers, 15 panel discussions, and 25 workshops. 

It will feature specialized workshops led by experts from PIF and its portfolio companies, providing insights into investments and supply chain opportunities.

Over 100 MoUs are expected to be signed, with 80 ministers and government officials in attendance. The forum will also include five side events and special corners.

Workshops and insights 

The event will feature specialized workshops led by experts from PIF and its portfolio companies, providing insights into investments and supply chain opportunities. These sessions will highlight expected demand for key products and services, equipping businesses with the knowledge to make informed decisions. 

The event is expected to draw over 12,000 visitors, including more than 1,000 C-level executives from the public and private sectors. It will feature over 120 speakers, 15 panel discussions, and 25 workshops. 

Some of the key speakers include Saudi Minister of Municipalities Majed Al-Hogail, Minister of Transport and Logistics Saleh Al-Jasser, Investment Minister Khalid Al-Falih and Minister of Economy and Planning Faisal Al-Ibrahim. 

Ceer CEO James DeLuca, Riyadh Air CEO Tony Douglas and Ma’aden CEO Robert Wilt are also scheduled to speak at the event. Other notable participants include Jerry Todd, head of the national development division at PIF; Ranjith Powell, head of ports and transport infrastructure at PIF; and Abdullah Al-Hussaini, head of strategy and engagement at PIF.

Attendees can engage with more than 100 portfolio company booths, 10 government entity booths, and participate in 10 business matching sessions. 

Additionally, over 100 memorandums of understanding are expected to be signed, with 80 ministers and government officials in attendance. The forum will also include five side events and special corners.

Panel discussions will bring together thought leaders from government entities, PIF, and its portfolio companies, discussing the private sector’s vital role in Saudi Arabia’s development, successful collaborations with the wealth fund, and opportunities in emerging sectors and giga-projects. 

The forum will also feature key announcements from PIF, reinforcing its commitment to private sector collaboration to drive economic growth. 

The event will feature four main tracks, covering investment and collaboration opportunities, as well as manufacturing and localization through panels and matchmaking sessions connecting private sector representatives with PIF portfolio companies. It will also include workshops on financing tools and capital market opportunities, along with sessions highlighting key programs and initiatives available to private sector firms. 

Day 1 highlights 

The forum will open with a keynote ceremony, followed by panels on government support for the private sector, supply chain localization, and biotech growth. Presentations will spotlight industry leaders such as ALAT, Ceer, Ma’aden, NUPCO, and Cruise Saudi. 

Key sessions include the MUSAHAMA Awards and a fireside chat on Riyadh Air’s vision for aviation. Workshops at the PSF Pavilion – Lab 1 will cover localization, finance, and infrastructure, while Palmgrove – Lab 2 will host panels on Saudi Arabia’s automotive, transport, and logistics sectors. 

Day 2 highlights 

The second day will feature panels on real estate market enablers, covering strategy, regulation, licensing, deal structures, funding, and partnerships. Presentations will highlight key projects, including Jeddah Central Development, NEOM, New Murabba, ROSHN, and King Abdullah Economic City. 

Fireside chats will explore Red Sea Global’s luxury tourism push, Diriyah Co.’s historical significance, and Rua Al Madinah’s vision for enhancing visitor experiences. 

Workshops at PSF Pavilion – Lab 1 will focus on contractor programs, AI’s role in Saudi Arabia, and the innovation ecosystem. Palmgrove – Lab 2 will cover manufacturing acceleration, sports investment, and Saudi investment opportunities. The MUSAHAMA Design Competition Awards will also take place. 

PIF’s Private Sector Forum is emerging as one of the most significant business events in Saudi Arabia, not only as a networking platform but also as a driver of tangible economic outcomes. 

The 2024 event saw strong private sector participation, with agreements signed across industries, including construction and financial services. The forum attracted over 9,000 attendees and showcased more than 10 investment and supply opportunities.

This year’s forum is expected to build on that momentum, with a strong emphasis on investment facilitation and supply chain resilience. 

The forum will conclude with a series of closing remarks from PIF executives, summarizing key takeaways, new business agreements, and upcoming initiatives aimed at further integrating the private sector into Saudi Arabia’s economic growth plans.