Saudi Arabia to lead GCC in economic growth in 2012

In reviewing measures of economic performance in Saudi Arabia, the budget of SR690 billion ($184bn) is expected to create a large number of jobs in the kingdom this year; indeed, recruitment experts are predicting that the country will add more jobs than any other nation in the region.

“Saudi Arabia, followed by Qatar, will be at the forefront of job creations taking recent employment trends into account,” Hasnain Qazi, Middle East Business Manager at Huxley Associates, told Emirates 24|7.

Experts believe that Saudi Arabia, Qatar and the UAE will drive positive growth for the region as a whole.

“The kingdom of Saudi Arabia will lead job creation by a long shot. On average, KSA GDP has grown 5 per cent year-on-year since 1969, with various highs and lows, and has always been seen as the engine of the Middle East,” Shane Phillips, Mena Regional Practice Leader – Financial and Professional Services at Stanton Chase, told Emirates 24|7.

Saudi Arabia is the largest of the Gulf Cooperation Council country. In addition, it has the largest native population, which makes up 79 percent of the total population, according to 2010 estimates.

Still, dealing with unemployment in Saudi remains an obstacle. With the implementation of the first phase of Hafiz, “ a program that helps Saudis until they find a job opportunity”, 700,000 Saudis began receiving monthly allowances on Dec. 31, reported Arab News.

The Ministry of Labor has approved a list of eligible Hafiz applicants, which includes 560,000 women and 140,000 men; the high number of unemployed women has raised concerns in the country.

Saudi women make up 14.4 percent of the workforce – triple the number from 1992 – according to a March 2010 study by Booz & Company, and female unemployment in the country if four times that of male unemployment.

Nadia Al-Sheikh, the co-owner and regional director of a public relations company, told Arab News that unemployment is high among women because they have fewer job opportunities in the Saudi market.

“Although more companies are starting to create job opportunities for women, some major companies still don’t offer any, especially for those who carry certificates in business and communication. Those women find jobs in schools and hospitals, but these don’t suit their educational degree,” she said. “In such cases, most women prefer not to work, unless they find a job opportunity that suits their qualifications and skills.”

Monster.com data shows that Saudi Arabai and the UAE have enjoyed the largest annual job growth rate among GCC countries. For the one-year period ended October, online job opportunities expanded in six of seven of the countries surveyed. Of this, Saudi Arabia (up 49 per cent) led all GCC countries. The UAE (up 7 per cent) led all sectors in monthly growth. Qatar (up 22 per cent) also enjoyed constant monthly recruitment activity.

According to Arab News, King Abdullah Bin Abdulaziz of Saudi Arabia listed as priorities in the country’s budget job creation and economic growth projects. The most obvious demonstration of this is in the SR265 billion allocated for new development projects. Spending has been allocated for more than 700 new schools, new university campuses and professional and technical training projects, as well as 17 new hospitals, along with sports cities. On the social side, the year will also see the construction of 500,000 new housing units at a cost of SR250 billion.

The United Arab Emirates should see an increase in job creation in the first quarter of 2012, at least according to 93 percent of employers surveyed. Job growth is forecast to be especially high in the consumer goods, construction, pharmaceutical and insurance sectors. The investment banking industry is expected to maintain the same level of employment as 2011, but the corporate and retail banking sectors will face a challenging year, said Gulf News.