Saudi Global Competitiveness

Abdullah Al Alami*

July 15, 2024

 

Saudi Arabia achieved a historic and unprecedented reduction in the unemployment rate. The incentives are clear; several recent decisions contributed to adding new job opportunities in attractive fields to the young generation. In addition, initiatives were launched to adopt new policies to stimulate the recruitment of qualified Saudis with technical skills and at the same time support advanced training programs Kingdome-wide.

Thus, there are distinctive transformations aimed at diversifying the economy, which has created job opportunities with good salaries and attractive incentives. This has improved the standard of living and enhanced purchasing power. Saudi Arabia provides aid to companies that employ and train citizens to meet the country’s labor market needs.

The outcome is clear; success in creativity and innovation, and development of modern technologies to enhance the Kingdom’s global competitiveness. There is also a keenness to provide young people with the skills necessary to engage in advanced technical jobs. This will stimulate professional development and contribute to building distinguished human capital in a healthy job market.

Here are two recent examples. The Shura Council called on Al-Baha University to create specialized programs with academic accreditation. The Shura Council also called on Hail University to work on diversifying its investments of its own revenues to achieve financial efficiency and sustainability. I believe we need to expand the recruitment of qualified faculty members in health, technical, and engineering specialties in all Saudi major universities where possible.

How does oil fit into all of this? Benchmark crudes are set to post some growth due to possible forecasts for demand and supply disruptions are likely to ease. Strong fuel demand is expected in the United States this summer, and oil demand will probably peak by 2029 at around 106 million barrels per day.

However, there are conflicting signals about the US economy. The US Federal Reserve has not decided whether to keep interest rates steady or postpone the decision until end of 2024. Ayman Al-Sayyari, Governor of the Saudi Central Bank, stressed that Saudi Banks are safe from troubled US Banks. Riyadh has reconfirmed the availability of safe and guaranteed liquidity, and the strength of its financial position.

 

*Saudi Economist