KSA Economy News & Discussions

[al-Hasani]

Custodian of the Two Holy Mosques King Abdullah is greeted by Culture and Information Minister Abdul Aziz Khoja during the Cabinet’s budget session on Monday. (SPA)

EDDAH: KHALIL HANWARE & P.K. ABDUL GHAFOUR

Published — Tuesday 24 December 2013

Last update 23 December 2013 11:45 pm

Saudi Arabia’s budget revenue for 2013 was projected to cross SR1.13 trillion and expenditure to amount SR925 billion registering a surplus of SR206 billion, Finance Minister Ibrahim Al-Assaf stated on Monday.

“The increase of actual over budgeted expenditures of around SR105 billion was due to additional expenditures on projects in the Two Holy Mosques and other development and service projects, especially transportation, housing, and education,” he said.
Preliminary estimates indicate that the public debt will decline from around SR98.8 billion ($26.3 billion) at the end of 2012 to around SR75.1 billion ($20 billion) at the end of 2013, representing less than 2.7 percent of projected GDP for 2013.
The number of government projects signed with the private sector in 2013 amounted to 2,330 with a total value of around SR157 billion.
Said Al-Shaikh, group chief economist at the National Commercial Bank, said: “The government is continuing with same sort of approach in conducting expansionary fiscal policies for 2014. Year over year, the government’s actual expenditure is surpassing the projected expenditure which may present the challenge for the sustainability of fiscal policy moving forward.”
“Money allocated for education represents 25 percent of total appropriations in 2014 with an increase of three percent compared to last year,” the ministry said.
John Sfakianakis, chief investment strategist at Masic in Saudi Arabia, told Arab News: “The 2014 budget shows a solid commitment to enhancing the country's education, healthcare and infrastructure growth whilst incentivizing the private sector to sustainable growth and development.”
He said the macro indicators are robust given the surplus and one of the world's lowest government to GDP debt ratios in the world. This provides ample fiscal support and prudent macro planning for years to come. GDP projections for 2013 are good but there a positive upside surprise to the 2012 headline GDP figure from 5.1 percent to 5.8 percent. Inflation is at moderate levels given that it should average around 3.6 percent and deflationary pressures prevail globally.
“E-government is of particular interest to this year's announced budget as well as science and technology which is an important driver for growth,” Sfakianakis said.
Basil Al-Ghalayini, CEO of BMG Financial Group, said: “A game changer for the Saudi's GDP is how soon the activation of the renewable energy plans will take place. This will eventually have an impact on the future reliance on oil for local consumption which ultimately its savings will affect the budget's bottom line.”
On another front, Al-Ghalayini said it is still to be seen the impact of the illegal labor's crackdown and their outbound transfers of billions of riyals on the national economy.
The new budget has made allocations for 465 new school buildings (SR3 billion) in addition to 1,544 school buildings currently under construction and 494 schools that have been completed in 2013. The budget includes appropriations to increase the number of classrooms and renovation of around 1,500 existing school buildings.
For higher education, the new budget includes appropriations for rehabilitation of girls colleges in several universities, opening of eight new colleges, and completing the construction of campuses for the new universities, including housing of faculty members.
With regard to the scholarship program, the total number of students studying abroad reached over 185,000 students including their dependents who are also supported by the government. Total expenditures on them amounted to more than SR22 billion ($5.9 billion).
The new budget includes several new projects that include building new vocational and technical colleges and institutes at a cost of SR5.2 billion and appropriations for existing projects amounted to SR500 million.
“There is eight percent increase in health sector allocations,” said the ministry. The budget includes new projects for new primary healthcare centers throughout the Kingdom, 11 new hospitals, two medical complexes, 11 medical centers, and 10 comprehensive clinics.
There are more than 132 hospitals under construction with a capacity of 33,750 beds and five medical cities around the Kingdom with a capacity of 6,200 beds. In 2013, 16 new hospitals were completed with a capacity of more than 3,700 beds.
For social services, the budget includes appropriations to build sport clubs in 20 towns, 16 social centers, social welfare and labor offices. In addition, the budget includes additional support for social welfare, special-need citizens, and poverty eradication programs.

Municipality services:
Total expenditure amounts to around SR39 billion, an increase of nine percent over 2013 budget. It includes new projects for inter-city roads, bridges, and drainage and control systems. It also includes other environment-related projects as well as appropriations for studies and design of public transport projects in Makkah and Riyadh.

Infrastructure and transportation:
Total expenditure amounts to SR 66.6 billion, an increase of 2.5 percent over 2013. It includes new projects amounting to SR40.2 billion for roads totaling 3,500 km, upgrading and modernizing existing ports and building additional berths, additional infrastructure projects in the industrial cities of Jubail, Yanbu and Ras Al-Khair, expanding and upgrading regional and international airports, and railroads.

Water, agriculture, industry, and other economic resources:
Total expenditure amounts to around SR61 billion, an increase of 5.7 percent over 2013. It includes new projects amounting to around SR33 billion for increasing water resources through building dams, desalination, utilizing deep aquifers wells, and expanding and improving water and water treatment networks.
In addition to existing projects, several other projects will be implemented to create the infrastructure for the industrial cities and to deliver required services to them. New projects have been planned to build new grain silos and expanding existing ones.

Government financing programs:
Specialized credit institutions (Real Estate Development Fund, Saudi Industrial Development Fund, Saudi Credit and Saving Bank, Agriculture Development Fund, Public Investment Fund, and Government Lending Program) will continue to provide loans that aim to support job creation and increase growth prospects.
It is estimated that around SR85.3 billion will be disbursed in 2014 by these institutions. The total value of loans provided by these institutions since their inception amounts to about SR537.5 billion.

2013 revenue set to cross SR1.13 trillion | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.



@Arabian Legend @JUBA @Yzd Khalifa @Bubblegum Crisis etc.

 

[al-Hasani]

2013 Ferrari F12 Berlinetta (IBN MANSI Auto) .. Jeddah, Saudi Arabia by حسام الغامدي, on Flickr


McLaren MP4-12C .. Ibn Mansi Auto (Jeddah, Saudi Arabia) - EXPLORED Feb 6, 2012 by حسام الغامدي, on Flickr


Convertible 2005 Lamborghini Murcielago meets Convertible 2000 Lamborghini Diablo VT .. (Jeddah, Saudi Arabia) by حسام الغامدي, on Flickr


Rolls-Royce Phantom "Two-Tone Color" from (Jeddah city, Saudi Arabia) by حسام الغامدي, on Flickr


Look at the bright sight (SLS AMG) by حسام الغامدي, on Flickr


The Italian Bull meets The American Muscle (Saudi Arabia) by حسام الغامدي, on Flickr

لا إله الا الله محمد رسول الله by Khaled A.K, on Flickr


Ferrari 458 Italia (Oakley Design) .. Jeddah, Saudi Arabia by حسام الغامدي, on Flickr


2013 Chrome Bentley Continental GT (Jeddah, Saudi Arabia) by حسام الغامدي, on Flickr


Lamborghini Murcielago LP640 (Jeddah, Saudi Arabia) by حسام الغامدي, on Flickr

 

[EagleEyes]

This is not a SA Economy section, post it in the sticky.

 

[EagleEyes]

Which sticky thread? There is no sticky thread about KSA on this section.
Remove the library news then.

Now you have one.

 

[al-Hasani]

Now you have one.

Thank you a lot Webby.

JEDDAH: KHALIL HANWARE & P.K. ABDUL GHAFOUR

Published — Tuesday 24 December 2013

Last update 24 December 2013 2:54 am

Custodian of the Two Holy Mosques King Abdullah on Monday unveiled Saudi Arabia’s 2014 fiscal budget that projected both revenue and expenditure at SR855 billion and allocated SR210 billion for education and SR108 billion for health services.
In an address to the nation during the Cabinet’s budget session at Khoraim Gardens, King Abdullah said Saudi Arabia would continue to invest in its God-given resources and work for achieving balanced development across the Kingdom.
“Massive spending will continue in sectors that support sustainable development and create more jobs for citizens,” the king said in his keynote speech that was delivered on his behalf by Abdul Rahman Al-Sadhan, secretary-general of the Council of Ministers.
“This budget reflects the Kingdom’s huge economic progress. It also gives glad tidings of a bright future,” the king said. “We understand this is less than the ambitions of our citizens and will continue our endeavors to provide a decent living for them,” he added.
King Abdullah emphasized the need for greater integration between the public and private sectors to drive economic growth, improving performance of the government sector and activating the role of better management to achieve greater growth.
“We’ll continue our efforts to reform the education system that plays an important role in human resource development as well as to correct the imbalance in labor market to create more jobs for citizens,” he said.
Spelling out other strategies, the king said: “We’ll strengthen the link between the annual budget and five-year plans, ensure sound implementation of public projects, balance the requirements of present and future generations, and make optimum utilization of natural resources.”
He stressed the need for carrying out the budgeted projects in the best manner for enhancing the welfare of citizens. The king urged all ministers to carry out their projects without any negligence. He instructed monitoring authorities to report regularly about the performance of various government departments.
In an extempore speech at the end of the budget session, King Abdullah said Saudi Arabia would continue its efforts in the service of Islam and Muslims, and support any human being who required assistance. “I advise you again to carry out your duties and responsibilities sincerely, fearing God,” the king told the ministers. “I also advise you to meet all citizens, be they young or elderly.”
He specifically instructed Saudi ambassadors abroad to take care of all citizens who need their assistance.
Speaking at the Cabinet, Finance Minister Ibrahim Al-Assaf said the budget has allocated SR248 billion for new projects. He said the Kingdom’s GDP was expected to cross SR2.79 trillion in 2013 in current prices with an average growth of 1.54 percent compared to the previous year.
Nonoil GDP was expected to achieve a growth of 6.99 percent this year, with the public sector growth reaching 1.56 percent and private sector 9.38 percent. Oil sector revenue declined by 3.83 percent during the year.

SR855bn budget propels growth | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.

 

[al-Hasani]

Map of KSA for those unfamiliar with the country and its location:

A few interesting statistics and maps:

 

[Yzd Khalifa]

Way to go Hasani...


I can't wait to KA financial center opens.

 

[al-Hasani]

Way to go Hasani...


I can't wait to KA financial center opens.

Yes, Sir.

GDP reflecting a growth rate of 1.54%

Last updated: Monday, December 23, 2013 11:06 PM


Gross Domestic Product (GDP)

According to the Central Department of Statistics and information (CDSI), GDP is estimated to reach SR2,794.8 billion ($745.3 billion) in current prices in 2013, reflecting a growth rate of 1.54 percent. The private sector is estimated to grow by 9.38 percent, whereas the oil sector declined by (3.83) percent in 2013.

In real terms, GDP for 2013 is estimated to grow by 3.8 percent compared to 5.81 percent last year. The oil sector is estimated to decline by 0.61 percent while the government sector is estimated to grow by 3.73 percent and the private sector by 5.5 percent in 2013. The private sector’s contribution to GDP is expected to exceed 58.75 percent. All components of non-oil GDP recorded positive and healthy growth in 2013. Specifically, non-oil industrial sector is estimated to grow by 4.72 percent; construction by 8.11 percent; transport, storage and communication sector by 7.20 percent; wholesale, retail, restaurants, and hotels by 6.16 percent; and finance, insurance and real estate by 4.86 percent.

General Price Level

Inflation, as measured by the cost of living index for 2007 base year, is estimated to increase by 3.35 percent in 2013, while the non-oil GDP deflator is estimated to increase by 1.85 percent.

Economic, financial and organizational developments

A number of developments, initiatives and actions taken by the government in 2013 have contributed to a rise in the private sector confidence and robust growth performance including:

• The continued implementation for the second phase of the National e-Government Project, which was launched in 1427/1428H, to support the initiatives and projects for the second operational plan for the e-Government (2012-2016). Currently, nearly 1600 online services are available through the National e-Government Portal (SAUDI). Moreover, the number of government entities connected to the secure electronic network is 160, and the number of government entities that exchange data electronically through government integration channel is 65.

Furthermore, a National Call Center was launched to serve the beneficiaries of the electronic services around the clock through multiple channels of communication.

• SADAD Payment System (SADAD) witnessed the joining of four new governmental entities this year, which increased the total number of entities connected to the system to 128 entities.

• International Monetary Fund (IMF) Report in 2013 acknowledged that Saudi Arabia has been one of the best performing G-20 economies in recent years, and has supported the global economy through its stabilizing role in the global oil market. – SG

Saudi Gazette - GDP reflecting a growth rate of 1.54%

 

[al-Hasani]

King: Budget to strengthen sustainable development
Last updated: Monday, December 23, 2013 11:06 PM

RAWDHAT KHURAIM, Riyadh – Presiding over the Council of Ministers session at Rawdhat Khuraim, Custodian of the Two Holy Mosques King Abdullah announced the budget, saying, “The budget that we approved today is clear evidence of what the Kingdom has been witnessing from a giant economic boom.”

The King highlighted that the budget would further strengthen balanced and sustainable development with a focus on human resources development and job creation.

In the speech, read out on his behalf by Secretary General of the Cabinet Abdurahman Bin Muhammad Al-Sadhan, King Abdullah said: “We announce general budget, with a total expenditure of SR855 billion, which aims to continue spending on programs and projects that further boost the march of sustainable development, create more job opportunities for citizens, and improve the services extended to them. The budget also include programs and projects supportive to all human resources development sectors, infrastructures and social services with a special emphasis on human resources development in education, training, and health, in addition to developing and improving social and municipal services and infrastructure, with a keenness on achieving balance among the regions and strengthening their role in the overall development of the country.

“The Kingdom’s available resources provide multiple opportunities for development. It is an extension of the accomplished achievements and the programs and projects being implemented which call for optimism for a better future. But we realize that it is less than we or citizens aspire to, so we are determined to continue the process of sustainable development in our dear country to secure a decent life for its citizens, generation after generation, by constantly working to enhance integration between the public and the private sectors.

“This will be through achieving growth in the economic activity, improving the performance of the government sector, activating the role of public administration in development, continuing to reform education as a foundation for human development, continuing to address the imbalance of the labor market in order to create job opportunities for citizens, and strengthening the link between the annual budget and development plans and promoting sustainability of public finance.”

The King also highlighted the need for improving effective implementation of projects and development programs, balancing the needs of the current generation and future generations, using the resources at the optimum level, bolstering the rule of law, strengthening security and promoting the spirit of responsible citizenship. – SPA

Saudi Gazette - King: Budget to strengthen sustainable development

 

[al-Hasani]

Optimism follows 2014 budget

Prince Fawaz bin Nasser

JEDDAH: MD AL-SULAMI

Published — Wednesday 25 December 2013

Last update 25 December 2013 3:08 am

The Kingdom’s massive spending allocations in past budgets will come to fruition in the next few years with completed roads and bridges, schools, railways projects, housing, health services, and industrial projects.
This is the view of businessman and economist Prince Fawaz bin Nasser who believes the recently unveiled 2014 budget would build on this past development spending.
“The 2014 budget carries indications of an outstanding economic and developmental future for the Kingdom. The fruits of the budget will be reaped in the upcoming years,” he told Arab News on Tuesday.
He said the spending allocated by the government after 2015 would focus on the “development and improvement of strategic projects.”
The government’s strategic projects include building up a general cash reserve for future generations. The government has been building up a reserve since 2005 with surplus money from its oil revenue, he said.
The prince said the Kingdom’s economy started to boom in 2006 when the price of oil crossed $50 a barrel.
“So the Kingdom has been enjoying an economic boom for the eighth year in a row since 2006. The 2014 budget is the ninth year of that boom,’’ the prince said.
He said the budgets between the late eighties and 2001 were burdened with debt because oil prices were very low during those years. The budgets from 2002 to 2005 were good but could not be rated as boom budgets.
He said that government projects have taken five to seven years from the time of their budgetary allocation to either starting or completion. For example, the projects commissioned in the 2006 budget were only started in 2011. The projects included in the 2007 budget saw daylight in 2012 and 2013, while the projects to be opened in 2014 and 2015 were envisaged in budgets of about six years ago.
“We started reaping the benefits of the boom from 2011. In other words we have been reaping the results of three boom budgets in 2006, 2007 and 2008, until now,” the prince said.
He said that 2014 and 2015 would see the peak of development projects, which would continue until 2020 and a few years afterwards. “The ambitious projects envisaged in the budgets of 2010, 2011, 2012 and 2013, which were huge in terms of size, quality and geographical distribution, will be ready for commissioning over the next five years.”
He said the developmental projects have spread to every corner of the Kingdom. “For instance the Ministry of Education has received a completed new school building every day for the last two years, while the Ministry of Health has received two health centers a week and a hospital every month, with these figures doubling in 2014 and 2015.”
The same level of development is taking place in all government sectors. The transport ministry has been constructing more roads and bridges each month. This is also the case with utilities such as water and electricity supply, and sewage and floodwater drainage projects, the prince said.
The huge projects in the two holy cities of Makkah and Madinah have already been completed or are underway. Major railway and metro projects are scheduled for completion next year, he said.
The most “spectacular results” would be seen with the construction of new industrial city projects such as Jubail 2 and Ras Al-Khair that will be opened next year, the prince said.
He said there has been “unprecedented growth” in human resources development with millions of students completing school and hundreds of thousands entering higher education or technical education programs.

Optimism follows 2014 budget | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.

 

[al-Hasani]

New health budget ‘will boost care for citizens’

SERVICE EXPANSION: Health Minister Dr. Abdullah Al-Rabeeah opens at children’s facility at Dallah Hospital in Riyadh on Tuesday. He said the health sector would witness greater expansion with the announcement of the new budget for 2014. (SPA)


JEDDAH: MD AL-SULAMI

Published — Wednesday 25 December 2013

Last update 25 December 2013 2:09 am

Minister of Health Abdullah Al-Rabeeah said on Tuesday that the new budget allocation for the coming year would help the ministry improve services for citizens and residents throughout the Kingdom.
Al-Rabeeah thanked Custodian of the Two Holy Mosques King Abdullah and Crown Prince Salman, deputy premier and minister of defense, for the “generous allocations,” which include financing for two medical cities in Makkah and the Eastern Province.
“The Health Ministry will strive to use the budgetary allocations in the best possible manner, in line with the national project for integrated and comprehensive health care. It also wants to achieve the noble values of fairness, equality and universality in the distribution of health services, with ease of access in all parts of the Kingdom,” said Al-Rabeeah.
Al-Rabeeah said the ministry last year opened 15 new hospitals across the country, adding 3,450 more beds. The ministry plans to launch more hospitals and medical towers with 8,160 beds this year. It also plans to build special centers and health facilities for heart surgery and the treatment of tumors. It is currently building 93 primary health care centers and two medical city projects in the northern and southern regions, he said.
Ahmed Al-Biz, undersecretary at the ministry for engineering affairs, said the budget allocation would see a more even distribution of services in the country by taking into account the population in each area. He said the ministry has a strategic plan to have services on par with advanced countries in five years.
The 132 hospital projects currently underway would see the ministry create a total of 38,739 beds in the country, with the number going up to 72,525 beds in 2019. The ministry would also commission 24 hospitals this year, Al-Biz said.
The three medical city projects underway include King Faisal City to serve the people in the southern provinces, King Fahd City in Riyadh and Prince Muhammad City for the northern provinces. The ministry would soon launch King Abdullah Medical City in Makkah province, while preparations are underway to launch King Khaled Medical city in the Eastern Province, Al-Biz said.
He said the challenges faced by the health sector include the rising cost of services because of expensive equipment, the increasing cost of qualified personnel, and the growing population.
Sami Badawood, director of Jeddah Health Affairs, said the new health projects this coming fiscal year include the commissioning of the East Jeddah Hospital with 300 beds within four months, a maternity and children’s hospital in north Jeddah, a mental health hospital with 500 beds in Asfan north of the city, a medical tower project at the Specialist Ophthalmic Hospital, and a central blood bank in the Suleimaniya district.
New projects in the budget for next year include 200 dental clinics — 100 in north Jeddah and 100 in the south of the city. There would also be new centers for tuberculosis, x-ray therapy, nuclear medicine, and rehabilitation and physical therapy in north Jeddah.
A source at the ministry said 4,723 people were sent abroad for advanced treatment at a cost of more than SR1 billion in 2013. This includes 2,781 sent by the Higher Medical Board and others on the orders of the King. They received treatment in countries including the United States, Britain, Germany and China.

New health budget ‘will boost care for citizens’ | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.

 

[al-Hasani]

Saudi spending on rail projects to reach $79bn in next 10 years

Last updated: Sunday, December 29, 2013 11:49 PM



Zeyad Al Rukban

RIYADH – Saudi Arabia’s infrastructure spending continues to surpass expectations. The Kingdom is especially committed to a nationwide transportation infrastructure expansion program which will feature one of the world’s most sophisticated rail and metro networks.

Spending on rail projects alone is forecast to reach around $79 billion in the next 10 years.

The total value of logistics projects connected to such developments across the GCC is projected to reach $3.7 billion by 2015.

Last year, GCC countries signed the biggest number of logistics contracts in the Middle East, fueled by large investments, high consumer spending, and rapid economic growth. The magnitude and multi-modal scope of regional transport investment initiatives are creating huge opportunities for developers, contractors, transport facility operators and their related industries.

To highlight Saudi Arabia’s market potential, Riyadh Exhibitions Company (REC), the leading exhibitions and conferences organizer, recently announced the launch of Saudi Logitrans 2014 – The International Exhibition for Transport, Logistics and Freight, and Saudi Rail 2014 – The International Exhibition for Rail, Metro Lines and Urban Transportation

The two events will be held on Oct. 27- 29, 2014 at the Riyadh International Convention and Exhibitions Center (RICEC), showcasing the latest products, equipment, technologies and services from international businesses from respective industries and providing an effective networking forum.

Zeyad Al Rukban, Deputy General Manager, Riyadh Exhibitions Company, said: “The aggressive pace of transportation infrastructure development in Saudi Arabia offers a conducive environment for regional and international logistics service providers to establish and expand their presence here. By providing integrated supply chains, freight forwarding services and specialized warehousing zones, these organizations can in turn boost the Kingdom’s industrial growth. Saudi Logitrans 2014 and Saudi Rail 2014 will facilitate the development of this rapidly expanding sector and highlight the wealth of existing and future opportunities that the Kingdom and wider GCC have to offer. It is an ideal platform to assess market needs and challenges as it will gather leading businesses and professionals from the industry.”

Saudi Logitrans 2014 and Saudi Rail 2014 are being organized under the patronage of the Saudi Ministry of Transport and Saudi Railways Organization. The Saudi Transport and Logistics seminars will be hosted concurrently. They will provide a forum for key government decision makers, transportation bodies, port authorities and industry professionals to announce initiatives, formulate strategies, discuss the latest case studies, and exchange information on global best practices. — SG

Saudi Gazette - Saudi spending on rail projects to reach $79bn in next 10 years

 

[al-Hasani]

Job security for 1.5 million Saudi Arabians

• 

JEDDAH: P.K. ABDUL GHAFOUR

Published — Tuesday 7 January 2014

Last update 7 January 2014 5:38 pm

Saudi Arabia on Monday announced a series of welfare programs for its citizens, including an unemployment insurance scheme and a housing loan support program for deserving applicants.
The insurance scheme comes in line with the government’s push to employ more citizens in the private sector to tackle long-term unemployment that officials see as unsustainable in light of high population growth.
The introduction of unemployment insurance is designed to make it more attractive for young Saudis to seek jobs in private companies, where the starting salary and other benefits are less generous than in government departments.
“The scheme will be applied on Saudis working in both public and private sectors and who lost their jobs for reasons beyond their control,” said Labor Minister Adel Fakeih, adding that it would be implemented after six months.
He said the scheme would provide job security to some 1.5 million Saudis working in the private sector. “It’s a quality scheme to ensure social security,” the minister said.
Suleiman Al-Quwaiz, governor of the General Organization for Social Insurance (GOSI), said the insurance scheme would be applicable to all Saudis who come under the pension scheme. It will be applied to all workers who have not surpassed the age of 59.
While the official unemployment rate is less than 12 percent, economists say only 30-40 percent of working age adults participate in the labor force. Most Saudis who do not have jobs are financially supported by relatives.
Most of those who work are employed by the state, but the government cannot support such a large wage bill in the long run, and the International Monetary Fund has warned that the private sector must meet future job demand.
“If there is a guarantee of income, particularly when that is connected to the level of previous earnings, it should make people more comfortable with taking up positions in the private sector,” Paul Gamble, director of the sovereign group, Fitch Earnings, told Reuters.
Under the new scheme, all Saudi workers will be charged one percent of their monthly salary as a subscription. Their employer will pay the same amount into the scheme.
Those who lose their jobs will be entitled to up to 12 months of compensation, set at 60 percent of the average salary they earned in the previous two years for the first three months and then 50 percent for the following nine months.
Benefits are capped at SR9,000 for the first three months and SR7,500 for the rest of the year. There is a minimum payment of SR2,000.
Workers who quit have an alternative source of employment or income from investments or have been paying into the scheme for less than a year are not eligible for compensation.
The Cabinet decided to pay SR100,000 compensation to families of students belonged to all levels of education and training when they die or become handicapped while going to or returning from their educational institutions.
Economy and Planning Minister Mohammed Al-Jasser said the new Cabinet decisions would enhance the progress and prosperity of citizens and ensure a decent life for them. “Helping the unemployed seek jobs without income disruption is a humanitarian scheme,” he said.
Al-Jasser said the new housing scheme would ensure transparent distribution of loans among deserving citizens such as widows and divorced. “It will also encourage more investment in the sector and reduce rents,” he added.
Housing Minister Shuwaish Al-Dhowaihi thanked Custodian of the Two Holy Mosques King Abdullah for endorsing the mechanism to select citizens deserving housing loans, adding that applications for such loans would be received through its “Iskan” portal after 60 days.
“We have opened a contact center to answer queries of citizens regarding the scheme.” Applicant should be married and aged not less than 25 and a member of the family should not have any decent house. The applicant should not have previously benefited from a government or private housing scheme. Women can also apply if they are responsible for their families.
Benefits are capped at SR9,000 for the first three months and SR7,500 for the rest of the year. There is a minimum payment of SR2,000.
Workers who quit have an alternative source of employment or income from investments or have been paying into the scheme for less than a year are not eligible for compensation.
The Cabinet decided to pay SR100,000 compensation to families of students belonged to all levels of education and training when they die or become handicapped while going to or returning from their educational institutions.
Economy and Planning Minister Mohammed Al-Jasser said the new Cabinet decisions would enhance the progress and prosperity of citizens and ensure a decent life for them. “Helping the unemployed seek jobs without income disruption is a humanitarian scheme,” he said.
Al-Jasser said the new housing scheme would ensure transparent distribution of loans among deserving citizens such as widows and divorced. “It will also encourage more investment in the sector and reduce rents,” he added.
Housing Minister Shuwaish Al-Dhowaihi thanked Custodian of the Two Holy Mosques King Abdullah for endorsing the mechanism to select citizens deserving housing loans, adding that applications for such loans would be received through its “Iskan” portal after 60 days.
“We have opened a contact center to answer queries of citizens regarding the scheme.” Applicant should be married and aged not less than 25 and a member of the family should not have any decent house. The applicant should not have previously benefited from a government or private housing scheme. Women can also apply if they are responsible for their families.
“We’ll consider the number of family members, age of the applicant and his/her social and health condition and the period an applicant waited for loans while looking into applications,” Al-Dhuwaihi said.

Job security for 1.5 million Saudis | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.

 

[al-Hasani]

Elderly businessman casts vote at JCCI elections

• 
  
  BREAKING THE AGE BARRIER: Salem Al-Otaibi, an elderly businessman who owns a trading company, visited Jeddah Events and Exhibition Center to cast his vote at JCCI elections on Wednesday. (AN photo)
  
  JEDDAH: FOUZIA KHAN
  
  Published — Thursday 9 January 2014
  
  Last update 9 January 2014 2:48 am
  
  

  The Jeddah Chamber of Commerce and Industry’s (JCCI) 21st board elections saw Salem Al-Otaibi, the oldest Saudi businessman, casting his vote on Wednesday.
  Ahmed Said Al-Ghamdi, head of the JCCI media center, noted that the elderly Otaibi came to cast his vote himself instead of giving someone the power of attorney.
  Al-Ghamdi also said that it was an honor for the JCCI to have Otaibi cast his vote as his act would motivate young Saudi businessmen and women to understand the concept of responsible voting, teach them the importance of their participation in the elections and how their decision can make a difference.
  He explained that the JCCI board elections are very important as those who are elected will have a four-year term to serve the city.
  Al-Ghamdi stressed on the importance of the JCCI’s role in the private sector’s leadership and to keep up the train of comprehensive development in the Kingdom in its era of prosperity.
  Al-Ghamdi also said that this year’s JCCI elections saw a large participation from businessmen and women, with around 3,700 businessmen voting on Tuesday.
  A total of 48 candidates including 8 women are vying for 12 board seats. Each voter can cast only one vote. The Ministry of Commerce will appoint six members, raising the board to 18 members. It also selects 6 well-known figures to fill their economic efficiency quorum.
  The JCCI has 70,000 members, of which 47,000 are eligible to vote in the elections. Only valid members of the JCCI can participate in the elections. Heads of law firms and consulting companies are not permitted to vote.
  The JCCI board elections kicked off on Sunday and will end on Thursday.

  
  Elderly businessman casts vote at JCCI elections | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.
  
  @Arabian Legend @Awadd @Bubblegum Crisis @JUBA @Yzd Khalifa
  
  Is it not beautiful to have senior businessmen like Salem al-Otaibi to inspire the youth and people of his age? I know that most of us prefer not to work in the private sector but if one looks at it historically then Arabs are one of the best skilled businessmen. Wherever the nearly 500 million Arabs are in the world, often far away from the Arab world, they open up successful businesses. Look at the Forbes "world's richest list". Many Arabs in the top including the world richest man - Carlos Slim Helú. Whether it is the Americas, South East Asia, Sub-Saharan Africa, South Asia, Central Asia or Europe.
  
  My point is that we should encourage more entrepreneurship and a bigger private sector. This is what is really the economic backbone of a country if you look outside of our region.
  
  I have only immense respect for respected elders like Salem al-Otaibi and I hope more of his like will come and especially young people. They must be active on all fields this is the only way our dear country will grow.

 

[al-Hasani]

More jobs as economy diversifies
Last updated: Sunday, January 19, 2014 11:47 PM

1. Expectations for growth in non-oil sector better than previous year: Al-Jasser
2. National Work Observatory in the cards to solve unemployment problem: Fakieh
3. SAGIA to support initiatives to develop standards and specifications: Al-Othman

Economy and Planning Minister Mohammed Al-Jasser (L) and Hans-Paul Burkner, Chairman of the Boston Consulting Group, attend the 7th annual global Competitiveness forum, in Riyadh on Sunday. – Reuters


Saudi Gazette report

RIYADH – A diversified economy will create more jobs as the revenues of non-oil exports have grown manifold, according to Minister of Economy and Planning Mohammed Al-Jasser.

Addressing the 7th annual Global Competitiveness Forum (GCF), which started here on Sunday morning, Al-Jasser said the expectations for growth in the non-oil private sector for the current year is better than the previous year.

He stressed the importance of the economic sector in providing job opportunities for citizens in projects capable of sustainability.

Al-Jasser said the Kingdom ranks the 19th among the world’s economies, and it is considered the largest one in the region, as it has plenty of energy resources, vast potentials of solar energy and energy derived from wind, as well as it constitutes a strategic link between the East and West and a gateway to regional markets.

He said that during the past 25 years the Kingdom has not registered any negative growth except for one year. The percentage of debt compared to GDP is just 2.7 percent, which is a low percentage.

He said the Kingdom injected huge investments in infrastructure and has established world-class industries and built distinctive knowledge centers that contribute to changing to a knowledge-based economy. Al-Jasser said any country should have the capability to compete so as to develop and prosper while gaining more competitiveness capabilities. He mentioned that the Kingdom realized this fact a long time ago.

Addressing the session “Improvement of education and creating job opportunities that meet the market needs,” Minister of Labor Adel Fakieh said the ministry will build a National Work Observatory to solve unemployment by monitoring available jobs in the labor market and draft pertinent labor laws.

He said the ministry has started a new program for the private sector to shoulder its responsibility to train Saudi workers.

Fakieh admitted that there is no program at present to compensate the labor market following the departure of foreign workers.

Addressing the forum, Governor of Saudi Arabian General Investment Authority (SAGIA) Abdullateef Al-Othman said the Kingdom recently carried out a number of economic initiatives to boost business environment.

It joined the World Trade Organization (WTO) after the implementation of the foreign investment law in 2005.

He said the forum strives to support investments so as to boost the national economy to achieve economic diversification, non-oil product expansion and transfer of technology. The forum is considered a roadmap for the Kingdom’s economy.

He said that SAGIA will support initiatives in engineering fields in developing standards and specifications to strengthen some of the infrastructure programs in the Kingdom and develop investment opportunities for each sector including oil, gas, mining, manufacturing, water, electricity, transport, health, tourism, telecom and IT.

Saudi Gazette - More jobs as economy diversifies