2.25m freelancers in Saudi Arabia join national economy

2.25m freelancers in Saudi Arabia join national economy
Freelancing accommodates individuals with different educational backgrounds. Shutterstock
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Updated 25 December 2024
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2.25m freelancers in Saudi Arabia join national economy

2.25m freelancers in Saudi Arabia join national economy
  • The 25— 34 age group is particularly active in freelancing
  • 62% of freelancers hold bachelor’s degrees

JEDDAH: Freelancing is emerging as a key contributor to Saudi Arabia’s economy, with over 2.25 million individuals registered on the freelance platform by September.

This growth reflects the rising popularity of flexible work, supported by the Ministry of Human Resources and Social Development’s launch of the “Future Work” company in 2019 to enhance the freelancing ecosystem by promoting modern workstyles, including remote work and flexible-hour freelancing.

The company’s mission is to create more job opportunities, empower Saudi talent, and develop a labor market that complements traditional employment while aligning with global trends, according to the Saudi Press Agency.

Freelancers make a notable contribution to Saudi Arabia’s economy. In 2023, the sector contributed SR72.5 billion ($19 billion) to the gross domestic product, representing 2 percent of the Kingdom’s total output. This highlights its role in diversifying income sources and strengthening the national economy.

The initiative, along with other efforts, has contributed to reducing the Kingdom’s unemployment rates. Saudi Arabia has revised its unemployment target to 5 percent by 2030, down from the previous goal of 7 percent, as part of Vision 2030’s ambitions.

The progress was highlighted by Minister of Human Resources and Social Development Ahmed Al-Rajhi during a panel discussion at the Budget Forum 2024 in November, where he detailed the Kingdom’s strides in improving employment figures. Al-Rajhi said that the unemployment rate among Saudis was 12.8 percent in 2018, and it has recently dropped to 7.1 percent.

The Ministry of Human Resources and Social Development issues freelance certificates to individuals specializing in specific fields, enabling them to work independently in activities approved by the ministry through the official freelance portal.

A recent report from Future Work highlights the sector’s rapid development and its alignment with Vision 2030. The report also emphasizes the diverse nature of freelance activities, with trade and retail leading at 38 percent, followed by industry at 13 percent and business services at 11 percent. The diversity demonstrates the sector’s adaptability to meet various economic needs.

Freelancing accommodates individuals with different educational backgrounds. According to the report, 62 percent of freelancers hold bachelor’s degrees, while 31 percent have high school diplomas or less, and 7 percent possess higher degrees.

Technology plays a pivotal role in the sector’s growth, with digital platforms becoming indispensable for freelancers, especially in fields like technology, information, and finance. These tools enhance productivity and connectivity, fostering sustainability and success in freelance careers.

Geographically, the Riyadh region accounts for the largest share of freelancers at 27 percent, followed by Makkah at 22 percent, and the Eastern Province at 14 percent.

The 25— 34 age group is particularly active in freelancing, reflecting the younger generation’s growing interest in this flexible career path.

The report said that 3.2 million women have expressed interest in joining the freelance market, underscoring the effectiveness of initiatives aimed at enabling women to balance professional and personal commitments.

Government programs like Reef, the Social Development Bank, and the Human Resources Development Fund further support freelancers by fostering an environment conducive to their growth and success, SPA reported.


Saudi Arabia launches aviation industry cluster in Jeddah to drive advanced manufacturing

Saudi Arabia launches aviation industry cluster in Jeddah to drive advanced manufacturing
Updated 24 February 2025
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Saudi Arabia launches aviation industry cluster in Jeddah to drive advanced manufacturing

Saudi Arabia launches aviation industry cluster in Jeddah to drive advanced manufacturing

RIYADH: The Saudi Authority for Industrial Cities and Technology Zones has revealed plans for a 1.2 million sq. m aviation industry cluster at MODON Oasis in Jeddah.

This ambitious project, developed in partnership with the Ministry of Industry and Mineral Resources and the General Authority of Civil Aviation, aims to localize cutting-edge aviation technologies and strengthen the sector’s supply chains.

The announcement, made during the ongoing Aerospace Connect Forum, was attended by GACA President Abdulaziz Al-Duailej, Khalil bin Ibrahim bin Salamah, deputy minister of industry and mineral resources for industrial affairs, and MODON CEO Majed Al-Argoubi.

Strategically located near King Abdulaziz International Airport and Jeddah Islamic Port, the aviation cluster is poised to offer an attractive investment landscape for aerospace manufacturing. The site will feature ready-built factories of varying sizes, designed to accommodate companies in the aviation sector and drive the localization of this vital industry.

This initiative is in line with Saudi Arabia’s National Industrial Strategy, Aviation Strategy, and Tourism Strategy, which collectively aim to position the Kingdom as a leading global aviation hub. The broader goal is to transform Saudi Arabia into a center for air transport, handling 30 million passengers and 2 million tonnes of air cargo annually.

MODON, in its commitment to advancing the aviation sector, is participating as a “Gold Partner” in the inaugural Aerospace Connect Forum, which runs in Jeddah until Feb. 25. The event is bringing together prominent local and international aviation experts, fostering a platform for knowledge exchange and business collaboration.

In addition to its efforts in aviation, MODON has also recently launched a food industry cluster in Jeddah, spanning over 11 million sq. m in the city’s second and third industrial zones. According to the Saudi Press Agency, this project is the world’s largest food industry cluster by area, supporting Vision 2030’s goals to enhance food security and industrial growth.

The new aviation industry cluster marks a significant milestone in Saudi Arabia’s strategy to boost industrial competitiveness, drive economic growth, and localize critical technologies, reinforcing the Kingdom’s leadership in the global aviation sector.


Saudi Arabia issues first aircraft maintenance licenses

Saudi Arabia issues first aircraft maintenance licenses
Updated 24 February 2025
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Saudi Arabia issues first aircraft maintenance licenses

Saudi Arabia issues first aircraft maintenance licenses

RIYADH: Saudi Arabia has issued its first-ever industrial licenses for aircraft maintenance and overhaul at the Aerospace Connect Forum in Jeddah, marking a significant advancement in the nation’s aviation sector.

The announcement was made at the inaugural forum, hosted by the National Industrial Development Center and held under the patronage of Minister of Industry and Mineral Resources Bandar Alkhorayef.

The two companies receiving the first licenses are Middle East Propulsion Co. and Saudia Technic, a subsidiary of Saudia Group. This milestone represents a key step in Saudi Arabia’s efforts to establish a self-sufficient and globally competitive aviation industry, in line with the objectives of Vision 2030 and the National Industrial Strategy.

An official statement said that the newly introduced industrial licensing activities were developed in collaboration with the General Authority of Civil Aviation and the General Authority for Military Industries.

These licenses encompass a wide range of aviation services, including aircraft repair and overhaul, component refurbishment, avionics system maintenance, as well as calibration and repair of electronic systems, and servicing of both military and commercial aircraft.

This initiative, which enables domestic companies to operate in the aircraft maintenance and repair sector, is expected to reduce Saudi Arabia’s dependence on foreign maintenance facilities, enhance localization efforts, and drive investment in high-value aerospace manufacturing and services.

The forum, running from Feb. 24-25, brings together leading experts, policymakers, and investors to explore the latest advancements and investment opportunities in the aviation sector.

Organized by the NIDC in collaboration with the Ministry of Industry and Mineral Resources, GACA, and Saudia Group, the forum serves as a key platform for industry stakeholders to collaborate and shape the future of Saudi Arabia’s aviation ecosystem.

The event will feature discussions on investment opportunities in Saudi Arabia’s aviation sector, infrastructure development for aircraft manufacturing and maintenance, research and innovation in aviation technology, as well as training and workforce development to meet industry demands.

This initiative aligns with the Kingdom’s broader strategy to establish itself as a regional leader in aviation services, creating a competitive business environment for both global and local investors, while enhancing its industrial capabilities.

With the launch of these licenses, Saudi Arabia strengthens its position as a hub for aviation services in the Middle East, reinforcing its commitment to economic diversification and technological advancement.

The forum is poised to play a pivotal role in shaping the country’s aviation roadmap, paving the way for future collaborations, innovations, and sector expansions.


Saudi Arabia tightens corporate ownership rules to boost transparency

Saudi Arabia tightens corporate ownership rules to boost transparency
Updated 24 February 2025
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Saudi Arabia tightens corporate ownership rules to boost transparency

Saudi Arabia tightens corporate ownership rules to boost transparency
  • Rules apply to all businesses operating in Saudi Arabia, including foreign entities
  • Companies must disclose beneficial ownership details upon registration and confirm their accuracy annually

JEDDAH: Saudi Arabia has approved new beneficial ownership rules to enhance corporate transparency and align with global financial regulations. 

Set to take effect on April 3, the measures coincide with the enforcement of the updated Commercial Registry System and were developed in collaboration with experts to align with international best practices, according to the Commerce Ministry. 

The decision was issued by Minister of Commerce Majid Al-Qasabi as part of efforts to strengthen regulatory oversight. The regulations, developed in line with Financial Action Task Force guidelines, require companies to disclose individuals who ultimately control or benefit from their operations. 

The move is part of Saudi Arabia’s broader efforts to modernize its business environment under Vision 2030. The rules aim to enhance transparency by establishing a dedicated database to register and store beneficial ownership data. 

The new rules also reinforce the Kingdom’s adherence to international standards, particularly those set by FATF, which works to protect the global financial system from illicit activities through policy development and enforcement. 

Under the new rules, a beneficial owner is defined as anyone holding at least 25 percent of a company’s capital, controlling 25 percent or more of its voting rights, appointing or dismissing leadership, or exerting significant influence over its decisions. If no individual meets these criteria, the company’s director, board member, or chairman will be designated as the beneficial owner, the release added. 

The rules apply to all businesses operating in Saudi Arabia, including foreign entities, but exempt publicly listed firms, state-owned enterprises, and companies undergoing bankruptcy liquidation. 

The release said companies must disclose beneficial ownership details upon registration and confirm their accuracy annually. Existing firms have until their next annual data confirmation deadline to comply. 

Businesses are required to maintain a dedicated register of beneficial ownership data and provide updates to the Ministry of Commerce. Access to this information will be restricted to regulatory and competent authorities under strict confidentiality provisions. 

The ministry added that non-compliance could result in penalties of up to SR500,000 ($133,000) or other sanctions under the Companies Law. 

The move is part of Saudi Arabia’s broader push to strengthen corporate governance and align with international anti-money laundering and financial crime prevention standards. 


PIF’s Alat, TK Elevator form $167m JV to build manufacturing hub

PIF’s Alat, TK Elevator form $167m JV to build manufacturing hub
Updated 24 February 2025
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PIF’s Alat, TK Elevator form $167m JV to build manufacturing hub

PIF’s Alat, TK Elevator form $167m JV to build manufacturing hub

RIYADH: A €160 million ($167 million) joint venture between the Public Investment Fund’s Alat and TK Elevator has been announced to advance mobility development in Saudi Arabia. 

The partnership will introduce products, end-to-end solutions, and manufacturing to the Kingdom, supported by a local development center. This marks the first elevator and escalator production operation in Saudi Arabia by a global firm, according to a statement.

This falls in line with PIF’s strategy to diversify the Saudi economy and develop key sectors, thereby contributing to the realization of Vision 2030’s objectives for sustainable urban development and economic growth. 

It also aligns well with the fact that the Kingdom’s elevator and escalator market is anticipated to reach $1.84 billion by 2030, according to Markets and Data.

“Alat’s partnership with TK Elevator is a cornerstone of our commitment to create a global sustainable technology manufacturing hub in Saudi Arabia focused on advanced industrials and electronics,” CEO of Alat Amit Midha said. 

Under the new deal, Alat will also become a direct TK Elevator shareholder and member of the current investment consortium with a 15 percent stake. This move further cements the firm’s operational strength and its attractive value creation prospects.

CEO of TK Elevator Uday Yadav said the company is “privileged” to form a joint venture with Alat to support the Kingdom’s vision and power his firm’s future organic growth.

Yadav added: “This partnership marks another important milestone in our transformation journey and represents a new era that underscores TK Elevator’s active participation in the upcoming development super cycle in the Kingdom of Saudi Arabia while reinforcing our capabilities in building smart cities of the future across the globe.” 

The CEO went on to say that the firm is pleased to welcome Alat as a direct shareholder and long-term investor in the company and that they are looking forward to benefiting from their engagement. 

The statement further revealed that the transaction is expected to close by the end of the third quarter of 2025, subject to customary statutory and regulatory approvals.

The new venture also reflects TK Elevator’s commitment to enhancing urban living through innovative mobility solutions and services. It will also help TK Elevator benefit from one of the fastest growing and most innovative new installation markets worldwide. 

The newly formed entity will also act as TKE’s sales and service hub in the Kingdom, leveraging the Middle East and North Africa network to drive regional business growth.


Saudi Arabia’s Vision 2030 driving capital market growth across the Gulf: Moody’s 

Saudi Arabia’s Vision 2030 driving capital market growth across the Gulf: Moody’s 
Updated 24 February 2025
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Saudi Arabia’s Vision 2030 driving capital market growth across the Gulf: Moody’s 

Saudi Arabia’s Vision 2030 driving capital market growth across the Gulf: Moody’s 

RIYADH: Saudi Arabia’s economic diversification strategy is transforming local capital markets and driving regional growth, positioning the Gulf Cooperation Council as an emerging financial hub, according to a Moody’s report. 

The Kingdom’s ambitious Vision 2030 plan is reshaping the nation’s financial landscape, with capital markets crucial for funding large-scale investment projects and attracting global investors.

The study further stated that sovereign wealth funds will act as “catalysts for capital market development and put the region on the global investment map.” 

The expansion of Gulf capital markets is being driven by economic diversification and structural reforms. 

Vision 2030 has accelerated investment in key non-oil sectors, creating new opportunities fueling market growth. 

Moody’s analysis aligns with recent reports that highlight the significant growth of Saudi Arabia’s capital market. 

Over the past five years, the Kingdom raised $274 billion, with $130 billion from US dollar-denominated issuances and $144 billion locally in Saudi riyals. 

Moreover, the Saudi Exchange experienced a 40 percent liquidity increase in 2024 compared to 2023. 

Foreign participation is considered essential for this transformation, and “debt capital markets have significant room for expansion,” the report stated. 

Regulatory reforms are expected to further boost international equity investment by easing foreign ownership rules and new offering requirements, attracting both passive and active inflows and encouraging greater private sector participation. 

These regulatory and operational enhancements have already led to the inclusion of the Saudi equity market in global indices, boosting liquidity and institutional investment, with further growth expected from increased initial public offerings, the study stated. 

Private credit markets are also expected to grow as investor appetite for alternative investments rises. 

Given the significant funding needs associated with economic transformation, alternative investments will gain traction. 

Moody’s believes that these include regional and global private credit funds, direct lending, and structured finance solutions. 

Private credit is also emerging as a viable alternative for small and medium-sized enterprises, making this option a viable alternative for this underserved segment, as banks have historically been cautious in lending to SMEs. 

Despite strong growth prospects, challenges remain, the report highlighted, adding: “Regulatory and legal complexities, together with a limited track record in some asset classes may impede long-term growth.” 

Additionally, the region’s dependence on hydrocarbon exports and exposure to geopolitical risks could impact market stability and investor sentiment. 

Sovereign wealth funds will continue to play a major role in shaping regional capital markets, as they provide liquidity, enhance market depth, and anchor foreign investor confidence. 

“Saudi Arabia’s Public Investment Fund has been central to the Kingdom’s economic diversification strategy by directing investments into key non-oil sectors and planning major IPOs, raising the profile of the Saudi stock market,” the report added.