Saudi investment minister visits UK to widen trade prospects
Updated 27 August 2021
Arab News
RIYADH: Saudi Investment Minister Khalid Al-Falih will take part in a series of meetings with UK business leaders during a visit to Britain in a bid to boost bilateral trade.
The talks will cover the financial services, health, chemicals, hotel and hospitality, and manufacturing industries, among others.
The minister said that more than 600 British companies were operating in Saudi Arabia and expressed aspirations that the meetings will contribute to increasing the volume of UK investments in Saudi Arabia.
He started the visit through a meeting with Prince Khalid bin Bandar bin Sultan, Saudi ambassador to the UK.
Al-Falih said that Saudi Vision 2030 “is an ambitious development plan that offers unprecedented investment opportunities for investors, whether they are governments, companies or individuals.”
He added: “We are keen for our friends in the UK to be fully acquainted with the available opportunities and the major developments that the investment environment witnessed in Saudi Arabia — especially we want their partnership to continue with us while we are building a prominent investment stage of our national development process.”
The minister is likely to discuss opportunities to attract British educational institutions and programs to the Kingdom.
Talks will also focus on developing the main components of supply chains in the health and biology, advanced technologies, education and human resources development sectors.
Saudi cement sector poised for global lead through digital maturity and circular economy practice
Updated 6 sec ago
Dayan Abou Tine
RIYADH: Saudi Arabia’s cement industry is poised to maintain its position as a key player in the global market, by harnessing circular economy principles and navigating challenges using digital innovation, according to an industry expert.
Amr Nader, CEO and co-founder of cement consultancy A3&Co, told Arab News that most of the Kingdom’s plants in the sector boast state-of-the-art technologies, which will enable them to reach digital maturity for achieving operational excellence and de-carbonization goals.
While some plants are initiating proper strategic initiatives in this area, others are still in the early stages of trials.
However, Nader believes that the transition to digital maturity is on the priority list of most plants and is expected to materialize within the next 2 to 5 years.
According to TechSCI Research, Saudi Arabia’s white cement market reached a value of $165.11 million in 2022, and is anticipated to grow at a compounded annual growth rate of 11.93 percent during the forecast period spanning from 2024 to 2028.
Key projects like NEOM and Qiddiya, along with the expansion of transportation networks and entertainment centers, have spurred a notable increase in the demand for high-quality cement in the Kingdom.
Nader believes this growth will come alongside major shifts in the sector, and said: “We anticipate a cost reduction and improved value addition, leveraging circular economy and even for net-zero transition if the right technologies at the efficient sizes are adopted.”
The CEO elaborated on the significance of adopting oxy-fuel technology at suitable scales, emphasizing its use of oxygen and recirculated flue gasses for burning fuels instead of air.
This approach, combined with increased reliance on renewable energy sources and the anticipated integration of low-carbon hydrogen as a fuel source, indicates the potential for Saudi Arabia’s cement industry to sustain its competitive advantage beyond 2030 according to Nader.
These initiatives form part of a comprehensive de-carbonization strategy aimed at lessening the sector’s ecological impact while preserving its market standing.
Nader further highlighted that the Saudi competitive pricing edge is driven by lower production costs even after factoring in carbon adjustment border taxes, potentially increasing exports to regions with stringent carbon regulations.
“In regard to the carbon boundary tax of Europe and other carbon boundary taxes in the world, we see that as an opportunity for further export from Middle East plants that will early adopt near-zero transitions in a time frame between 2024 and 2028,” he said.
Carbon boundary taxes, also known as carbon border adjustment mechanisms, are policies implemented by governments to address carbon leakage.
They ensure that industries subject to carbon pricing within their jurisdictions remain competitive with foreign industries that may not face similar levies..
These taxes aim to prevent the relocation of industries to countries with weaker climate policies while also encouraging other nations to adopt similar carbon pricing measures.
Projects like OXAGON at NEOM have been fueling the cement sector. File
Nader highlighted challenges affecting demand in the cement sector, such as heightened sea freight costs, reduced vessel availability due to geopolitical tensions, and increased pricing by Saudi plants to counter higher energy costs from Aramco.
“Despite the increase in fuel prices by average 100 percent for all fuels, the production cost in efficient Saudi plants is still lower than the global average by approximately 15 percent and there is still room to improve that by adopting operational excellence,” he added.
He explained that large companies in the Kingdom, with capacities exceeding 8,000 tonnes per day, have significant opportunities for improvement by implementing Operational Excellence Strategies and early adoption of near-zero science-based targets initiative verified strategies.
This will not only reduce costs further but also enables them to remain below the global cost average by the same 15 percent, even with the anticipated increase in energy prices next year, he added.
Reduced government investment has posed another challenge according to Nader, causing a slowdown in large-scale projects and consequently diminishing the demand for cement.
This trend translated into a 4 percent decline in domestic sales and a 30 percent drop in exports for Saudi Arabia’s 17 cement firms during the first quarter of 2024 compared to the same period last year, as reported by Al-Yamama Cement.
Notably 97 percent of cement sales were domestic, with only 3 percent being exported.
Despite this drop in sales, the Kingdom stands as the largest cement producer in the region, housing several of the most significant cement-manufacturing firms in the area, according to Global Cement.
The most prominent firms in Saudi Arabia, based on market capitalization according to Bloomberg data, include Al Yamama Cement, with a market cap of SR6.95 billion, followed by Saudi Cement at SR6.82 billion, Southern Province Cement at SR5.5 billion, then Qassim Cement, and Yanbu Cement.
Nader linked the recent decline in domestic sales to certain giga-projects in the Kingdom that demand green cement, a product not commonly manufactured in most of Saudi Arabia’s plants.
“Nevertheless it must be noted that Saudi Arabia consumption per capita is still one of the highest in the world at approximately 1.3 tonnes per capita yet the utilization of the sector is less than 60 percent due to high installed capacity in the period between 2013 and 2017,” Nader added.
In its April report, Al-Jazira Capital also associated the decline with the increased influence of Ramadan on sales, noting that the holy month spanned 21 days in March 2024, compared to just 9 days in the previous year.
Nader had emphasized in a February interview with Aggregates Business that the Middle East’s cement plants, characterized by their large size, enjoy advantages in economies of scale and operational efficiency. With most plants equipped with modern technology and automated processes, they outperform their European counterparts, some of which date back to the 1950s.
Additionally, the region’s abundant solar, wind, and land resources present opportunities for the adoption of green energy, positioning the Middle East cement sector to lead in sustainability initiatives globally.
Looking ahead, Nader foresees a growing emphasis on sustainability and de-carbonization in the region, leading to increased production of green products.
Furthermore, he predicts a doubling of cement exports from the Middle East within the next two to three years, with Saudi Arabia, the UAE, and Algeria currently leading as the largest exporters.
Saudi Arabia’s pioneering healthcare reforms leading the way across the region, experts insist
Updated 17 May 2024
Miguel Hadchity
RIYADH: Saudi Arabia’s bold healthcare reforms promise valuable lessons for the region and beyond, according to a senior official.
In an interview with Arab News, Adeel Kheiri, partner in Oliver Wyman’s India, Middle East and Africa health and life sciences practice, highlighted the Kingdom’s endeavors in this sector.
Saudi Arabia has embarked on a journey to prioritize the health and well-being of its citizens, laying a robust foundation for progress.
This commitment has been evident through a steady increase in healthcare spending, with a staggering SR147 billion ($39.2 billion) allocated in 2020 alone, signaling a resolute dedication to revolutionize the nation’s health infrastructure.
Reflecting on this shift, Kheiri said: “Saudi Arabia’s ambitious healthcare reforms stand out for their scale, complexity, and rapid timeframe. This unique approach will undoubtedly offer valuable lessons learned for the IMEA (India, Middle East, and Africa) region and beyond.”
Vikas Kharbanda, Arthur D. Little’s Middle East partner and healthcare practice lead, echoed that analysis, and told Arab News that very few health systems have managed to “achieve the degree of structural, policy and operations reforms as Saudi Arabia is witnessing at the moment, particularly at the scale and geographical scope.”
Kharbanda expressed that the Kingdom is on a path to achieving an “unprecedented change” at a pace “that has not been seen in most health systems that have gone through similar modernization journeys.”
Foundation of progress
An ambitious plan has been set in motion to expand healthcare facilities, with a particular emphasis on augmenting hospitals and primary healthcare centers.
According to project management and advisory services firm Currie & Brown, Saudi Arabia has 78,000 beds in more than 500 hospitals.
This is up from 445 hospitals and 64,694 beds in 2014.
At a macro level, the evolution of Saudi Arabia’s modern health system unfolded across three distinct periods, according to Arthur D. Little.
The initial decade of the century witnessed the early acknowledgment of challenges, leading to substantial investments in establishing core fundamentals.
This included significant investments in physical infrastructure, formulation of health insurance policies, and the expansion of the healthcare network.
“The second phase of development was triggered around the early part of the second decade amidst a growing burden on the public health system, increasing demand for services, the emergence of epidemics, steady growth in the health insurance sector, and need for efficiency that saw increasing focus on digitalization, integration, capacity, and productivity enhancement,” said Kharbanda.
The onset of the third phase of development, initiated toward the conclusion of the second decade, with the introduction of Vision 2030 and the Healthcare Sector Transformation Program, heralds a truly transformative era.
The program is transforming the Kingdom’s healthcare system to be more comprehensive, effective, and integrated than ever before.
This enhanced system prioritizes innovation, financial sustainability, and disease prevention while improving access to healthcare.
It also focuses on expanding e-health services and digital solutions, improving the quality of care, and adhering to international standards.
Adeel Kheiri, partner in Oliver Wyman’s India, Middle East and Africa Health and Life Sciences practice. Supplied
Elevating quality of care
Quality stands as a cornerstone of Saudi Arabia’s healthcare ethos, evidenced by the implementation of accreditation programs like the National Accreditation Program for Healthcare Organizations and the Saudi Central Board for Accreditation of Healthcare Institutions.
These programs uphold stringent standards of patient safety and care, catalyzing an elevation in healthcare services quality throughout the Kingdom.
“Saudi Arabia is likely to make significant strides in managing the human capital to meet the needs of a more future-facing health system,” Kharbanda said.
He added: “This involves identifying and setting up the training systems and accreditation for new roles in the care delivery system, including nurse practitioners, biostatisticians, etc.”
The focus, according to Kharbanda, has to be on developing the necessary capacity and capability in the workforce to meet the new models of care delivery centered around people instead of patients and ensuring new skills to adapt to the rapidly changing medical technologies.
Universal health coverage
Furthermore, Saudi Arabia’s commitment to quality care extends to its efforts toward achieving universal health coverage.
In a landmark move in 2019, the Kingdom embarked on a journey toward UHC, guaranteeing free healthcare services for all citizens irrespective of their socioeconomic status.
This initiative not only ensures equitable access to medical services but also fosters a culture of inclusivity within the healthcare framework.
The ongoing plans go beyond just investing in the capacity of the health system, according to Kharbanda.
He noted that the approach is centered on ensuring a more remarkable shift toward primary care to “manage health rather than sickness.”
Saudi Arabia’s commitment to UHC is a core tenet in its commitment to provide an economically vibrant society and underpin that with an equally robust, resilient, and lively social infrastructure.
“In my view, Saudi Arabia’s investment in world-class health infrastructure will be critical at three levels,” Kharbanda said.
He explained that establishing strong social infrastructure, including high-quality healthcare, not only attracts and fosters top human capital but also directly contributes to economic growth by boosting productivity and creating jobs.
Kharbanda added: “To ensure access to equitable, high-quality, and affordable healthcare, it is necessary to rapidly shift the healthcare delivery system toward care out of the hospitals, and increasing participation of the private sector.”
This is anticipated to positively impact the national economy, potentially saving SR30 billion to SR40 billion in projected public health spending by 2030 and catalyzing over SR30 billion in private sector investments within the same timeframe.
Harnessing technology’s power
The advancement of digital health services, including telemedicine and other e-health services, has made significant strides in recent years and has had a positive impact on the post-COVID-19 environment in the Kingdom, according to Arthur D. Little.
“While consumer-facing digital health solutions are gaining traction, the most impactful innovations for Saudi Arabia’s healthcare transformation will likely be non-clinical and support service applications,” Kheiri said.
He explained that tech enablement in these areas can significantly improve automation, transparency, and efficiency, especially as government health systems are corporatized and expected to adhere to private-sector-like operating principles.
Through a digital health revolution, the Kingdom has pioneered telemedicine and e-health services, transcending geographical barriers to enhance patient care.
The inauguration of the SEHA Virtual Hospital in 2022 exemplifies Saudi Arabia’s commitment to leveraging technology for the greater good, enabling virtual consultations and remote surgeries to reach even the farthest communities.
“Cross-border collaboration in healthcare and life sciences holds immense potential for the IMEA region,” Kheiri said.
He continued: “Saudi Arabia’s advancements can act as a catalyst, particularly in areas like life sciences localization and medical tourism. By working together, countries can leverage each other’s strengths, minimize duplication of efforts, and achieve greater success on the global stage.”
The Arthur D. Little partner believes that localization has always been a topic of great importance in ensuring the long-term sustainability and self-reliability of the sector.
“The real opportunity resides in the emerging areas for biotech and genetic based services where the playing field is less loaded in favor of established and traditional pharma and other technologies suppliers,” Kharbanda added.
Challenges and opportunities
Despite the strides it is making in the healthcare sector, Saudi Arabia faces challenges, including the deployment and operations of capacity in low-density population zones.
“No capacity in any health system will be sufficient to meet the demand unless people take better care of their wellness and participate in the system by bringing greater accountability for their health,” Arthur D. Little said.
Therefore, the challenge is to develop systems where awareness, education, and greater participation lead to a more efficient health system.
The top official noted that outside of the urban centers, there is a greater need to engage people in health management through a more vibrant community-based engagement and health management.
“We see significant advancements in medical technologies and new therapies, the challenge will be to adapt the system to these requirements to take into account novel funding approaches, technologies, and an ecosystem capable of fostering and adopting these innovations,” Kharbanda explained.
However, the Kingdom remains resolute in its pursuit, with plans to privatize segments of the healthcare sector and localize pharmaceutical production, heralding new opportunities for growth and innovation.
Vikas Kharbanda, Partner and Healthcare practice Lead at Arthur D. Little, Middle East. Supplied
Insurance industry integration
Alongside its healthcare advancements, Saudi Arabia’s insurance industry is experiencing rapid growth.
Projected to reach $22 billion by 2028, with a compound annual growth rate of 5.2 percent, the sector is primarily driven by the health and motor segments, accounting for 86 percent of overall gross written premiums.
Despite expectations of normalization in growth starting from 2024, the industry has witnessed substantial expansion.
Moreover, the creation of almost 4,000 new healthcare jobs through the signing of eight memorandums of understanding valued at $1.07 billion in October with international and local companies further demonstrates Saudi Arabia’s commitment to enhancing its healthcare sector.
These agreements aim to facilitate self-sufficiency in the healthcare sector by localizing the supply chain for advanced medical devices, thereby generating 3,800 job opportunities within the Kingdom.
“With a strategy centered on the growth of private providers, there has, in parallel, been tremendous focus on the growth of the private insurance sector as well,” Kharbanda emphasized.
He added: “The GWP (gross written premium) for the health insurance market in the Kingdom has grown by almost 50 percent over the last six years, with nearly 25 percent growth being achieved in 2022. This clearly demonstrates the increasing penetration levels for health insurance in the Saudi market.”
GWP is the total amount of money an insurer collects from its customers in exchange for insurance policies.
The mandatory health insurance program, along with economic growth driving workforce expansion, is expected to further boost the health insurance market, according to the top official.
“What would be very interesting is to explore models for supporting a greater collaboration in private and public health financing to allow more choices for patients to shift between public and private providers through an episode and enhance access to services while gradually re-aligning the whole health financing model with more outcome-based and value centric schemes,” Kharbanda suggested.
Looking to the future
As Saudi Arabia continues to develop healthcare financing, the future holds promising prospects for collaboration between public and private sectors.
Business can help accelerate healthcare innovation and accessibility, according to Oliver Wyman’s partner.
“Public-private partnerships and other forms of private sector engagement can help address existing ecosystem gaps and also support planned enhancement to the care continuum,” Kheiri said.
Establishing clear collaboration models, aligning incentives, and balanced risk-sharing will be essential for success, he noted.
The Kingdom has embarked on a journey of reforms within the health system that aims to achieve changes in a time that is unprecedented in many ways.
“This presents a unique opportunity for Saudi Arabia to become a case study of how health reforms can be carried out in an inclusive, ambitious, and comprehensive fashion,” Kharbanda noted.
This transformation happens when the underlying medicinal science and technologies go through a very rapid evolution, he explained, adding “this also presents a unique opportunity for Saudi Arabia to demonstrate the ability to transform an existing health system and construct a future health system centered on wellness, digitalization, and people-centric health management rather than patient-centric care delivery.”
Oil Updates – crude set for weekly gain on signs of improving demand
Updated 17 May 2024
Reuters
NEW YORK : Oil prices gained on Friday, with global benchmark Brent set for its first weekly increase in three weeks on signs of improving global demand amid stronger economic indicators from key consumers China and the US, according to Reuters.
Brent crude oil prices climbed 21 cents, or 0.25 percent, to $83.48 a barrel by 6:14 a.m. Saudi time. US West Texas Intermediate crude futures rose 7 cents, or 0.09 percent, to $79.30 a barrel.
Brent futures are set to rise about 1 percent on a weekly basis, with WTI futures set to gain 1.4 percent.
“WTI crude oil prices seem to have found a near-term floor/support at around $78.40/barrel after a 9 percent+ decline from 26 April in the past week due to several encouraging factors such as two consecutive weeks of decline in US crude oil stockpile and more upcoming ‘piecemeal’ stimulus measures from China,” said OANDA senior market analyst Kelvin Wong, referring to the country’s potential program to buy up unsold homes directly from property developers.
Markets were also bolstered by China’s industrial output growth at 6.7 percent year-on-year in April as recovery in its manufacturing sector gathered pace, pointing to possibly stronger demand to come.
Declines in oil and refined products inventories at major global trading hubs have also created optimism over oil demand growth, reversing a trend of rising stockpiles that had weighed heavily on crude oil prices in prior weeks.
Recent economic indicators from the US have fed into the optimism over global demand. US consumer prices rose less than expected in April, data showed on Wednesday, boosting expectations of lower interest rates in the country.
Those expectations were further bolstered by data on Thursday that showed a stabilizing US job market.
Lower interest rates could help soften the US dollar, which would make oil cheaper for investors holding other currencies and drive demand.
On the supply side, investors were mostly looking for direction from an upcoming OPEC+ meeting on June 1, which will likely be held online.
An extension of OPEC+ cuts in oil output beyond June is likely to see firmer prices in the medium term, said OANDA’s Wong.
ANZ analysts said in a client note: “We see three possible scenarios for the outcome of the 1 June meeting: extend, unwind or complete removal of the voluntary cuts of 2.2mb/d. Our current model is based on a gradual unwinding of the cuts in H2 2024. Even with that, we see the market moving into a deficit, with the future call on OPEC production well above current output.”
Saudi Arabia innovating procurement, supply chains to secure prosperous future, forum hears
Experts highlight Saudi Arabia’s innovative steps to transform various sectors of the economy
Updated 16 May 2024
MANAL AL-BARAKATI
RIYADH: Saudi Arabia is spearheading transformative initiatives in order to enhance innovation in procurement and supply chains across various sectors, an industry forum was told.
At the Chartered Institute of Procurement & Supply’s MENA Conference in Riyadh, a series of presentations and panel discussions underscored the vital importance of ensuring the security of supply chains, boosting local content, and streamlining government procurement spending in order to pave the way for a prosperous future.
From water desalination to real estate development, the Kingdom is leveraging advanced technologies to optimize operations and drive economic growth, delegates heard.
Transforming the real estate sector
The National Housing Co. has embarked on a journey to optimize the supply chain in the Saudi real estate sector, according to the firm’s Supply Chain and Business Support General Manager Maan Al-Othimeen.
He took to the stage to outline the organization’s strategic initiatives aimed at fostering local production efficiency and supporting small and medium enterprises in order to create the infrastructure needed to support the government’s development goals in the construction sector.
The implications of these efforts are not limited to the construction supply chain alone, rather, they translate into a foundation on which the nation will be able to build its hospitality and giga-project goals, he said.
Beyond that, by 2030, NHC aims to deliver 600,000 housing units, further catalyzing the sector’s growth and stimulating the economy.
NHC is empowering local businesses and promoting national workforce participation by introducing new initiatives, Al-Othimeen said, adding: “In promoting local production efficiency by supporting local factories we have launched Mawad, an online platform linking contractors, real estate developers, local factories and suppliers to streamline purchases, expand choices and stabilize market prices.
“In terms of financing, we offer financial solutions in partnership with government entities, banks and financial firms to encourage local businesses, including developers, contractors and factories and improve project completion in the real estate development sector.
“We are also building technologies through awareness campaigns while supporting local service providers.”
As a testament to its success, through the Mawad platform, the company has managed to reach over $500 million in transaction values, signed 113 memorandums of understanding with local factories, and achieved average savings of 21 percent, the general manager added.
Moreover, NHC’s collaboration with Tawteen — Saudi Arabia’s human capital localization agency — and its focus on nurturing the next generation of workforce through initiatives like Wa’ed, demonstrates the organization’s commitment to sustainable development and talent empowerment.
Al- Othimeen added: “NHC employees undergo training and factory tours in collaboration with local manufacturing products to gain insight into product lines.”
As the Kingdom continues to embark on a journey of transformation of its hospitality, tourism and real estate sectors, it will require a strong basis for its supply chains and workforce to see it through, he noted.
“KSA’s construction sector is projected to grow at 5.8 percent between 2023 and 2030, it is projected that the construction market value will grow from SR189 billion ($50.39 billion) in 2023, to SR281 billion by 2030. By 2030, 28 percent of this figure will be represented by hospitality, while 33 percent will be residential, 24 percent will be energy and utilities, 11 percent will be infrastructure, and 4 percent will be industrial,” he said.
In order to meet the growing demand for building materials, NHC plans to establish an industrial park specialized in the manufacturing of key building materials, the general manager added.
The industrial park will be an integrated development with three asset classes: industrial, logistic and urban class.
Government procurement
Under the framework of Saudi Arabia’s Vision 2030, the government has implemented initiatives to enhance its procurement strategy.
Ahmed Al-Harbi, executive director of government procurement efficiency, highlighted the significant strides made in digitalization and local content development at the forum.
This work has yielded tangible results, including cost savings and improved efficiency, Al-Harbi explained, adding: “Through all these transformations, information and data that have happened over the past years, it is a journey in the Kingdom that is still ongoing.
“It began in 2018 through the digitization of the procurement industry which was largely made possible through Etimad, which is a unified end-to-end digital platform introduced by the government to assure efficiency and transparency, serving both the government and private sector.
“It allows for sourcing through the Etimad e-market, government travel platform, Etimad e-auction, online tenders as well as digital contracting and an online payment platform.”
Moreover, the government’s emphasis on standardizing purchasing templates, introducing new methods, and enhancing payment processes has streamlined operations and fostered transparency in government procurement, he noted.
With transformative initiatives across key sectors, the Kingdom is poised to lead the way in procurement and supply chain innovation, driving economic diversification and sustainable development, he further explained.
A key achievement throughout the journey, according to the executive director, is an improvement of cost efficiency, with more than SR20 billion in savings witnessed by adapting category management methodology.
Local content has also been supported through 35 industry localization and knowledge transfer agreements signed by the authority and over 1,000 items added to the mandatory list of national products, he said.
There has also been an improvement in procurement efficiency and effectiveness, with 15 percent reduction in life cycle, from tender to award, and 27 percent reduction in tenders’ cancellation rate, he added.
Al- Harbi said: “In the last three years, when we first started, there was a large amount of expenditures, we spent — compared to previous years — over SR7 billion annually in procurement spending on over 3,000 projects, and we were of course supporting over 300 government initiatives.”
He went on: “These expenses have covered over 38,000 products and services that were provided. The number of POs (procurement orders) annually was 15,000 with over 600 procuring government entities, over 180 registered suppliers and four e-platforms.”
Revolutionizing water desalination
The Saudi Water Authority has undertaken a comprehensive digital transformation of its supply chain operations.
Abdulrahman Al-Yousef, general manager of shared services and supply chain at SWA, highlighted the organization’s commitment to utilizing cutting-edge technology.
“Since we operate in a vital sector such as water desalination, our focus has been on enhancing efficiency and reliability through digitalization,” stated Al-Yousef.
“Through initiatives such as smart warehouses and automation, we have achieved remarkable results, including a 98 percent reduction in time and a 400 percent increase in storage efficiency,” he added.
SWA’s adoption of advanced analytics, artificial intelligence and Internet of Things integration has revolutionized procurement processes, reducing its lifecycle by 37 percent.
This transformation underscores the Kingdom’s dedication to ensuring accuracy and time efficiency in critical sectors.
Moreover, SWA’s continuous investment in renewable energy sources and eco-friendly technologies has positioned it as a global leader in sustainable water management.
With 33 production systems utilizing the latest eco-friendly technology, SWA is driving environmental stewardship while meeting the Kingdom’s growing water demands with an efficient, automated supply chain.
Saudi Arabia moves to localize mining sector professions
Updated 16 May 2024
Arab News
RIYADH: Saudi Arabia is on track to boost the localization of professions related to the mining sector thanks to a new agreement signed by the Human Resources Development Fund.
Inked with the Saudi Arabian Mining Co., also known as Ma’aden, the memorandum of understanding aims to enhance cooperation and partnerships between the two parties to develop human capital in the sector, according to a statement.
This move falls in line with the common goals of the two sides and aligns well with the Kingdom’s Vision 2030 in developing human capabilities and enabling them to get promising job opportunities.
It also reflects the accelerating growth of the mining sector in Saudi Arabia and globally. Under the terms of the newly signed MoU, the two sides will work to support the training and empowerment of suppliers in Ma’aden’s local content program, Tharwa, in accordance with the controls approved by the fund.
The mining firm launched Tharwa in 2022. It encompasses the company’s vision to create a wealth of resources in the Kingdom.
The deal will also see both sides ensure that trainees receive appropriate support solutions and motivation plans.
Additionally, the agreement entails studying the possibilities for achieving sustainability in the mining and mineral wealth sector, which is vital to strengthening the national economy.
The two parties agreed to form a joint working group that includes specialists to activate areas of cooperation as well as work to prepare unified periodic reports that outline the progress in the agreed upon areas.
Ma’aden is an important figure in the field as it is the largest multi-commodity mining and metals company in the Middle East. Its manufacturing capabilities include producing phosphate fertilizers, aluminum metal, and gold.
In January, the firm secured international recognition with a certificate for producing 614,000 tonnes of ultra-low carbon ammonia, the largest quantity acknowledged globally.
The endorsement from Det Norske Veritas at the time signified a substantial stride in Ma’aden’s plans to expand and transform its operations, aspiring to become an environmental, social, and governance role model in the Kingdom.
This accreditation, which was received at the time, also highlighted the mining firm’s commitment to operational excellence and expanding its product range.
