Saudi Arabia’s overall unemployment rate drops to 5.1% in Q3: GASTAT

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Updated 28 December 2023
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Saudi Arabia’s overall unemployment rate drops to 5.1% in Q3: GASTAT

RIYADH: Saudi Arabia’s overall unemployment rate dropped to 5.1 percent in the third quarter of this year, reflecting a decrease of 0.7 percentage points from the same period in 2022, according to official data.   

The General Authority for Statistics reported that the joblessness rate among Saudi nationals was 8.6 percent in the third quarter, down 1.3 percentage points from the previous year.   

However, there was a slight increase of 0.2 percentage points in the Kingdom’s overall unemployment rate, encompassing both Saudis and non-Saudis, in the third quarter compared to the previous three months.   

Similarly, the unemployment rate among Saudi nationals increased by 0.3 percentage points in the third quarter compared to the second quarter of this year.   

Saudi Arabia’s Vision 2030 has set targets for the joblessness rate to decrease to 7 percent by the end of the decade, alongside a predicted women’s participation rate in the workforce of 30 percent.   

The report highlighted that the labor force participation rate among Saudi females increased by 0.6 percentage points to 35.9 percent in the third quarter, with the employment-to-population ratio rising by 0.3 percentage points to 30.1 percent. 

However, the joblessness rate among Saudi females in the third quarter increased by 0.6 percentage points to 16.3 percent compared to the second quarter. 

Among Saudi males, labor force participation decreased by 0.7 percentage points, reaching 66.8 percent in the third quarter.  

The employment-to-population ratio among Saudi males also declined by 0.7 percentage points to reach 63.47 percent.  

On the other hand, the joblessness rate among Saudi males remained unchanged at 4.6 percent in the third quarter, compared to the previous three months. 

The GASTAT report noted that a significant 94.7 percent of unemployed Saudi nationals are open to job opportunities in the private sector. 

Regarding commuting preferences, the report indicated that 61.7 percent of unemployed Saudi females and 47.8 percent of Saudi males without jobs are willing to commute for a maximum of one hour.  

Additionally, 75.8 percent of unemployed Saudi females and 89.5 percent of Saudi males without a job indicated that they would accept work for eight hours or more per day.  

Among job seekers in the Kingdom, the most commonly used active search method was seeking assistance from friends and relatives, with 84.8 percent of aspirants using this method in the third quarter.  

The report added that 73.4 percent of unemployed Saudi nationals applied directly to employers, while 61.5 percent used the National Employment Platform, also known as Jadarat.


Education drives weekly POS spending in Saudi Arabia to over $3bn 

Updated 7 sec ago
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Education drives weekly POS spending in Saudi Arabia to over $3bn 

RIYADH: Saudi Arabia’s point-of-sale transactions rose to SR12.3 billion ($3.2 billion) in the week ending April 12, driven by a sharp 2412.9 percent surge in spending on education. 

Following Eid Al-Fitr, POS transactions in this sector reached SR256.8 million, up from SR10.2 million in the previous week, according to the latest figures from the Saudi Central Bank, also known as SAMA. 

During that seven-day period, spending on transportation saw the second-largest increase at 115 percent to reach SR693.9 million, with the number of transactions surging by 26.9 percent to 2.7 million.  

Spending on construction and building materials followed with a 109.3 percent uptick to SR311.5 million.  

Spending on electronics reached SR154.9 million, as transaction volume in the sector rose by 23.2 percent. Health and furniture also saw notable increases, up 63.4 percent to SR778 million and 62 percent to SR228.5 million, respectively. 

Among the top three categories by overall value, food and beverages led with SR1.8 billion, marking a 10.3 percent week-on-week increase. Despite a 21.4 percent decline, restaurants and cafes came second at SR1.7 billion. 

Miscellaneous goods and services accounted for SR1.51 billion in POS spending, a 34.5 percent rise, making it the third-largest category. 

Combined, these three segments represented approximately SR5 billion, or 41.3 percent, of total POS activity during the week. 

Meanwhile, spending in recreation and culture declined by 5.5 percent to SR250.5 million, and hotel transactions dropped 21.9 percent to SR288.6 million. 

Geographically, Riyadh dominated POS transactions, representing around 34.9 percent of the total, with expenses in the capital reaching SR4.3 billion — a 34.5 percent increase from the previous week.  

Jeddah followed with a 17.9 percent increase to SR1.7 billion; Dammam came in third at SR635.3 million, up 32.8 percent.  

Makkah experienced the most significant decrease in spending, dropping by 5.8 percent to SR485.5 million. Madinah followed with a 4.3 percent reduction to SR494.3 million. 

Tabuk and Dammam saw the largest increases in terms of number of transactions, surging by 25.8 percent and 19.8 percent, respectively, to 4.5 million and 8.7 million transactions.


Lucid says it is on track to enter midsize electric SUV market next year 

Updated 19 min 18 sec ago
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Lucid says it is on track to enter midsize electric SUV market next year 

RIYADH: Lucid is on track to launch its midsize electric SUV in 2026, company executives said on Tuesday, as the EV maker looks to tap an increasingly competitive segment dominated by rival Tesla’s bestselling Model Y crossover. 

“There are a lot of crazy things going on in the world that can affect that (timeline). But currently we are on track,” said Derek Jenkins, senior vice president at Lucid. 

The company targets a $50,000 price point, which will pit the model against contenders such as the Ford Mustang Mach-E, Hyundai Ioniq 5 and the upcoming Rivian R2. 

Teams at Lucid have been preparing assembly lines and working with vendors to move ahead with the launch, said Emad Dlala, senior vice-president at the electric-vehicle maker. 

TARIFF IMPACT 

Lucid is not immune to the Trump administration’s tariffs but is working to mitigate its effects, interim CEO Marc Winterhoff told Reuters. 

While the EV maker does not plan any price hikes, it has signed agreements with battery cell and graphite suppliers to bring production to the US, Winterhoff said. 

“We have those agreements already. The plants are being built right now, so it’s not something that we can switch on today, but it's in the near future,” he said. 

Former Tesla engineer Peter Rawlinson, who was the CEO of Lucid for more than five years, resigned in February. 

The company, backed by Saudi Arabia’s sovereign wealth fund PIF, plans to launch the less-expensive Touring variant of the Gravity SUV later this year, starting at $79,900. It expects strong demand for the premium model to help double its 2025 vehicle production to around 20,000 units. 

Lucid started producing its Gravity SUV at its Arizona factory last year, with customer orders for the Grand Touring trim opening in November. 


Hongkong Post suspends goods mail services to US 

Updated 29 min 29 sec ago
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Hongkong Post suspends goods mail services to US 

HONG KONG: Hongkong Post said on Wednesday it had suspended goods mail services by sea to the US and will suspend its air mail postal service for items containing goods from April 27 due to “bullying” US tariffs. 

When sending items to the US, Hong Kong people “should be prepared to pay exorbitant and unreasonable fees due to the US’s unreasonable and bullying acts,” Hongkong Post said in a statement. 

Other postal items containing documents only without goods would not be affected. 

“The US is unreasonable, bullying and imposing tariffs abusively. Hongkong Post will definitely not collect any so-called tariffs on behalf of the US,” it said. 

Hong Kong, a special administrative region of China, has been subjected to the same tariffs as China, according to a US government notice. 

The former British colony has long been known as a free and open trading hub, but China’s imposition on Hong Kong of a sweeping national security law in 2020 drew criticism from the US and led it to end the financial hub’s special status under US law. 

Hongkong Post said its suspension was due to the US government's elimination of the “de minimus” exemption and the increase in tariffs for postal items from Hong Kong containing goods to the US from May 2. 


Trump orders tariff probe on all US critical mineral imports 

Updated 48 min 48 sec ago
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Trump orders tariff probe on all US critical mineral imports 

RIYADH: US President Donald Trump on Tuesday ordered a probe into potential new tariffs on all US critical minerals imports, a major escalation in his dispute with global trade partners and an attempt to push back on industry leader China. 

The order lays bare what manufacturers, industry consultants, academics and others have long warned Washington about: that the US is overly reliant on Beijing and others for processed versions of the minerals that power its entire economy. 

China is a top global producer of 30 of the 50 minerals considered critical by the US Geological Survey, for example, and has been curtailing exports in recent months. 

Trump signed an order directing Commerce Secretary Howard Lutnick to begin a national security review under Section 232 of the Trade Expansion Act of 1962. That is the same law Trump used in his first term to impose 25 percent global tariffs on steel and aluminum and one he used in February to launch a probe into potential copper tariffs. 

US dependency on minerals imports “raises the potential for risks to national security, defense readiness, price stability, and economic prosperity and resilience,” Trump said in the order. 

Within 180 days, Lutnick is required to report his findings to the president, including whether to impose tariffs. Were Trump to then impose a tariff on a nation's critical minerals, the rate would supersede the reciprocal tariffs Trump imposed earlier this month, according to the White House. 

The review will assess US vulnerabilities for the processing of all critical minerals — including cobalt, nickel and the 17 rare earths, as well as uranium — how foreign actors could be distorting markets, and what steps could be taken to boost domestic supply and recycling, according to the order.  

The US currently extracts and processes scant amounts of lithium, has only one nickel mine but no nickel smelter, and has no cobalt mine or refinery. While it has several copper mines, the US has only two copper smelters and is reliant on other nations to process that key red metal. 

The order takes a broad view of processing as all the steps after rock is taken out of the ground and where they are done. It also directs a review of US capabilities to produce so-called semi-finished goods, including battery cathodes and wind turbines. 

The move is the latest in Trump’s effort to jumpstart US minerals production and processing. The president last month signed an order directing federal agencies to create a list of US mines that could be quickly approved and federal lands that could be used for minerals processing. 

Still, it takes years to build a new mine and processing facility, a timeline that has sparked concern about where the US could procure minerals were tariffs broadly imposed. 

“Ultimately the US gets certain minerals from China because there are not alternative supplies elsewhere,” said Gracelin Baskaran, director of the critical minerals security program at the Center for Strategic and International Studies. 

‘FULL SCOPE’ 

Beijing earlier this month placed export restrictions on rare earths in response to Trump’s tariffs, a move that further exacerbated supply concerns amongst Trump officials. 

Rare earths are a group of 17 elements used across the defense, electric vehicle, energy and electronics industries. The US has only one rare earths mine and most of its processed supply comes from China. 

The restrictions from China were seen as the latest demonstration of the country’s ability to weaponize its dominance over the mining and processing of critical minerals after it put outright bans on the export of three other metals last year to the US and slapped export controls on others. 

Chinese mining companies across the globe have been flooding markets with cheap supplies of many critical minerals in recent years, fueling calls from industry and investors for Washington to support US projects. 

The White House also said Trump is focused on closing tariff loopholes. As with other products, the supply chain for critical minerals processing involves multiple countries. 

“An effective policy should take into account the full scope of the supply chain to level the global playing field,” said Abigail Hunter, executive director of SAFE’s Center for Critical Minerals Strategy. 


Oil Updates — crude slides as markets assess impact of US-China trade war 

Updated 16 April 2025
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Oil Updates — crude slides as markets assess impact of US-China trade war 

SINGAPORE: Oil prices fell about 1 percent on Wednesday, as shifting US tariff policies fuelled uncertainty, prompting traders to weigh the potential impact of the US-China trade war on economic growth and energy demand, according to Reuters. 

Brent crude futures fell 66 cents, or 1.0 percent, to $64.01 per barrel by 09:30 a.m. Saudi time, while US West Texas Intermediate crude dropped 69 cents, or 1.1 percent, to $60.64. Both benchmarks fell 0.3 percent on Tuesday. 

Global oil demand is expected to grow at its slowest rate for five years in 2025 and US production gains will also taper off, due to US President Donald Trump’s tariffs on trading partners and their retaliatory moves, the International Energy Agency said on Tuesday. 

“Investors continue to struggle in finding a catalyst to drive a more meaningful rebound, as global growth is widely expected to slow ahead with US tariffs, which puts oil demand in jeopardy,” said Yeap Jun Rong, market strategist at IG. 

“The downward trend for oil prices remains intact and we may expect initial optimism around tariff rollbacks to fade, and the underlying macro headwinds on upcoming economic data could bring markets back to a more sobering reality,” Yeap said. 

World oil demand this year is expected to rise by 730,000 barrels per day, the IEA said, sharply down from the 1.03 million bpd it expected last month. The reduction is larger than a cut in demand estimates made on Monday by the OPEC. 

The tariff dispute between the US and China remains the most significant threat to the global economy and oil demand, said Imad Al-Khayyat, a research lead at London Stock Exchange Group. 

“Each passing week without signs of easing in this standoff increases the likelihood of a global recession and lowers the price ceiling,” Al-Khayyat said. 

Concerns over Trump’s escalating tariffs, combined with rising output from OPEC+, a group comprising OPEC and its producing allies such as Russia, have already dragged oil prices down roughly 13 percent so far this month. 

The uncertainty surrounding trade tensions has led several banks, including UBS, BNP Paribas and HSBC, to cut their crude price forecasts. 

Trump has ratcheted up tariffs on Chinese goods to eye-watering levels, prompting Beijing to slap retaliatory duties on US imports in an intensifying trade war between the world's two biggest economies that markets fear will lead to a global recession. 

Meanwhile, US crude oil stocks rose 2.4 million barrels in the week ended April 11, while gasoline inventories fell 3 million barrels and distillate stocks dropped 3.2 million barrels, market sources said, citing American Petroleum Institute figures on Tuesday.