Saudi Arabia champions youth as it drives talent development to fuel Vision 2030

Special Saudi Arabia champions youth as it drives talent development to fuel Vision 2030
First batch of students on the RSG Scholarship program, delivered in partnership with the University of Prince Mugrin in Madinah. Supplied
Short Url
Updated 24 January 2025
Follow

Saudi Arabia champions youth as it drives talent development to fuel Vision 2030

Saudi Arabia champions youth as it drives talent development to fuel Vision 2030
  • Kingdom is encouraging entrepreneurship 
  • 76 percent of young Saudis view the government as a positive change-driver

RIYADH: As Saudi Arabia redefines its economy and aspirations under Vision 2030, the Kingdom is placing a tremendous focus on its most valuable asset — its youth.

Through a dynamic blend of public-private partnerships, targeted training, and groundbreaking programs, Saudi Arabia is setting the stage for a new generation of skilled professionals who will not only fuel growth but also transform the economic landscape.

Figures from the General Authority for Statistics released in 2023 show that 63 percent of the Kingdom’s population is under 30 years old, and the government and private sector are working hand-in-hand to shape the coming era.

“Digital literacy is essential, as technological advancements require the younger generation to not only be proficient in the latest advancements but also drive innovation in areas like AI and data analytics,” Riyadh Al-Najjar, PwC Middle East chairman and Saudi Arabia country senior partner, told Arab News

He added: “An entrepreneurial mindset is equally important, as the success of Vision 2030 relies on growing the private sector. Young people need to be able to spot opportunities, think critically, and solve problems that add value to the economy.”

On a similar perspective, Zehar Filemban, executive director in talent development at Red Sea Global, noted the essential skills Saudi Arabia is focusing on to prepare its youth for roles in an evolving economy.

In emerging fields like technology, tourism, and renewable energy, digital literacy is crucial, enabling young Saudis to work with advanced technologies, while problem-solving equips them to tackle complex challenges and project management ensures efficient handling of tasks and responsibilities.

“By nurturing these skills, we aim to empower the next generation to contribute effectively to the Kingdom’s evolving economy,” Filemban told Arab News.

Alongside these technical skills, critical thinking, adaptability, and leadership are equally important.

Critical thinking allows young professionals to approach problems analytically, adaptability helps them respond effectively to rapid changes, and leadership empowers them to drive projects and inspire teams.

By cultivating both technical and soft skills, Saudi Arabia aims to equip the next generation to lead in a competitive job market, fostering innovation and supporting the country’s ambitious economic transformation under Vision 2030.

 “An entrepreneurial mindset is equally important, as the success of Vision 2030 relies on growing the private sector,” Al-Najjar said, underscoring that the future workforce must not only navigate established pathways but also create their own.

Robust youth engagement

PwC's Middle East Youth Outlook 2024 report underscores the importance of local talent development for the Kingdom’s future, indicating that a large portion of Saudi youth are highly motivated to contribute to the nation's progress.

The report reveals that 76 percent of young Saudis view the government as a positive change-driver, reflecting trust in the Vision 2030 agenda and a desire to align with national goals.

It also emphasizes that Saudi youth are keenly interested in career pathways that not only offer upward mobility but also provide opportunities to build skills in fields critical to the Kingdom’s sustainable future, like technology, healthcare, renewable energy, and tourism.

Filling the skills gap via private-public partnerships

Private companies in Saudi Arabia are working alongside government initiatives to improve youth employment and skill development.

"We actively partner with various ministries and educational institutions to offer tailored training programs that address industry-specific needs,” Filemban said.

He continued: “These collaborations, such as the RSG Elite Graduate Program, RSG Scholarship Program, Red Sea Vocational Training Program, and partnerships with local educational institutions, ensure that Saudi youth gain practical, hands-on experience while building a strong foundation for their careers, ultimately aligning with the goals of Vision 2030 and beyond.”

The alignment of private companies with government initiatives has been essential to the Kingdom’s approach, creating job readiness programs that meet the demands of the local labor market.

PwC, along with other private-sector giants like Aramco, NEOM, and Red Sea Global, are deeply committed to skill development and Saudization, reducing dependency on expatriate labor by equipping local talent with the expertise necessary to fill high-demand roles.

The firm’s Hemam program provides Saudi youth with training in consulting and technology, coupled with mentorship to bridge the gap between education and employment.

“It is also important for the private sector and educational institutions to continue working closely together, as it plays a pivotal role in preparing young Saudis for their careers,” Al-Najjar said.

He added: “Universities and academic institutions are increasingly working alongside businesses to ensure that curricula and training programmes are aligned with the specific needs of in demand sectors.”

Al-Najjar went on to say: “This alignment ensures that graduates possess the needed skills and are well-equipped to transition from education to employment seamlessly.”




Riyadh Al-Najjar, PwC Middle East chairman and Saudi Arabia country senior partner. Supplied

Encouraging entrepreneurship 

Saudi Arabia’s burgeoning entrepreneurial ecosystem is also playing a significant role in economic diversification.

The government, along with private-sector incubators such as The Garage and Flat6Labs, offers young business minds vital resources, including funding, mentorship, and technical support.

According to Al-Najjar, the private-sector incubators across the Kingdom play a significant role by providing entrepreneurs with access to technical expertise, strategic advice, and an extensive network of investors.

This guidance is helping young Saudis transform innovative concepts into viable businesses, fostering a generation of self-starters who contribute to job creation and economic growth.

Programs like these underscore the rise in entrepreneurial interest among Saudi youth, who are increasingly drawn to fields such as technology, renewable energy, and gaming.

Building a sustainable workforce: Saudization and beyond

Saudi Arabia’s shift towards a sustainable, homegrown workforce involves not only training but also the transfer of knowledge from foreign experts to Saudi nationals.

Companies are focused on workforce localization and training, with entities like Red Sea Global launching initiatives to empower Saudi talent to take on roles in fields such as tourism and renewable energy.

Filemban described RSG’s Global Leader Program as a targeted leadership initiative aimed at building capacity within Saudi nationals.

“This approach creates a sustainable workforce and also fosters a culture of ownership and innovation, empowering Saudis to take on roles across key sectors. We are also investing in a range of leadership initiatives, including the RSG Global Leader Program,” he said.

Filemban added: “Young Saudis are showing particular interest in sectors like tourism, technology, and renewable energy, areas that align closely with the goals of Vision 2030.”

He further explained that by connecting them with industry experts and providing resources, they enable them to transform their innovative concepts into sustainable businesses that contribute to the Kingdom’s economic growth.

Looking ahead to what’s next

When asked about further steps that Saudi Arabia should take to retain and attract talent in fields crucial to Vision 2030, Filemban noted that the Kingdom must continue to develop a robust talent ecosystem that not only attracts skilled professionals but also retains them in essential fields

“This can be achieved by expanding partnerships with global educational institutions, investing in lifelong learning programs, and enhancing incentives for skill development,” he said.

Filemban continued: “At Red Sea Global, we are committed to developing comprehensive career pathways, creating opportunities for continuous professional growth, and fostering an environment where top talent is valued and nurtured.”

On his side, Al-Najjar emphasized the importance of Saudi Arabia taking active steps to attract and retain talent in fields critical to the country’s future, even beyond Vision 2030.

“A key priority will be creating flexible, purpose-driven workplaces that connect back to the demand of today’s workforce. As highlighted in our Hopes and Fears Survey, 57 percent of workers value work-life balance and job security,” he said.

Al-Najjar continued: “This makes it essential for businesses to expand initiatives such as remote working policies, wellness programmes, and inclusive environments.

He added that this involves expanding public-private partnerships for advanced training, enhancing the appeal of fields like cybersecurity, artificial intelligence, and clean energy, and offering incentives and career growth opportunities for young professionals.

“By focusing on these areas, Saudi will have created a dynamic ecosystem that not only attracts global professionals but also nurtures and retains local talent who will drive the Kingdom’s economic transformation,” Al-Najjar said.

The Middle East Youth Outlook 2024 report recommends that Saudi Arabia continue to invest in scholarships, internships, and public-private collaborations to attract young professionals to emerging industries.

In doing so, the Kingdom is not only positioning itself as a talent hub but also fostering an environment where local youth can thrive and innovate.

Overcoming the challenges

Despite these extensive efforts, challenges remain. As Filemban pointed out: “One of the core challenges is bridging the gap between the skills young Saudis acquire in educational institutions and the rapidly evolving needs of the job market.”

The rapid pace of technological advancement, combined with the evolving demands of industries like AI and data analytics, requires continuous upskilling.

Initiatives such as Vision 2030’s Human Capability Development Program aim to address this by aligning education with industry requirements, preparing youth for careers in key sectors through practical skills and soft skills training.

In response, companies like Red Sea Global and PwC are working closely with universities and vocational training centers to develop curricula and training programs that meet industry standards.

This alignment between academia and industry is crucial to ensuring that young Saudis are equipped with relevant, market-driven skills, enabling them to transition smoothly into the workforce.


Tencent Cloud to launch Saudi operations in 2025 with $150m investment, says official

Tencent Cloud to launch Saudi operations in 2025 with $150m investment, says official
Updated 12 sec ago
Follow

Tencent Cloud to launch Saudi operations in 2025 with $150m investment, says official

Tencent Cloud to launch Saudi operations in 2025 with $150m investment, says official

RIYADH: Tencent Cloud will begin operations in Saudi Arabia this year with an initial investment of $150 million, as the Chinese tech giant moves to expand its footprint in the Middle East, a company official said. 

Dan Hu, vice president of Tencent Cloud International for the Middle East and North Africa, said the company’s expansion aligns with Saudi Arabia’s broader push to attract foreign investment and establish itself as a global technology hub under Vision 2030. 

“Tencent Cloud’s Saudi region will become operational by 2025. We will see it this year,” Hu said in an interview with Arab News at the LEAP conference in Riyadh. “We are going to invest $150 million for the local infrastructure, we source partnerships over the next few years. We have to support the country’s Vision 2030.” 

The company is working to build its presence in the Kingdom by assembling a local team, forging partnerships, and expanding its customer base. 

“In China, Tencent was established more than two decades ago. We are probably one of the most reputable companies in China. We have WeChat, we have games ecosystem,” he said. 

While Tencent has an established and mature ecosystem in China, Hu acknowledged the company is still in the early stages of expansion in the Middle East. 

“Our data center will be operational by the end of this year. We are still trying to build up our local teams and to build up our local ecosystem, our suppliers and our customers, our system integrators, and our ecosystem partners,” he said. 

Despite its nascent presence in the Kingdom, Tencent has already secured major clients, including clean-energy leader BYD, even before its Saudi operations officially launch. 

Hu sees strong growth potential for cloud computing in the region, particularly in applications leveraging artificial intelligence and generative AI. 

“I think cloud computing can be a very robust infrastructure for AI applications. Cloud computing can be the underlying infrastructure to support the prosperity of AI applications in the Kingdom and also in the region,” he said. 

Hu added that Tencent Cloud has tailored offerings for customers in Saudi Arabia, including gaming solutions, live streaming, and real-time applications. 


IBM expands AI workforce in Saudi Arabia, aligning with Vision 2030: CEO 

IBM expands AI workforce in Saudi Arabia, aligning with Vision 2030: CEO 
Updated 56 min 49 sec ago
Follow

IBM expands AI workforce in Saudi Arabia, aligning with Vision 2030: CEO 

IBM expands AI workforce in Saudi Arabia, aligning with Vision 2030: CEO 

RIYADH: US-based tech giant IBM employs a majority of Saudi nationals at its artificial intelligence lab in the Kingdom, underscoring the nation’s commitment to developing local talent. 

It was disclosed during a panel titled “Bringing Tech to Life” on the opening day of LEAP 2025, Riyadh’s flagship technology event, held from Feb. 9-12 under the theme “Into New Worlds.” 

Speaking at the discussion, IBM Chairman and CEO Arvind Krishna said: “Over 70 percent of our hires in (IBM’s AI and R&D lab) are Saudi nationals, not expats.”    

Launched at LEAP 2024, IBM’s $200 million Software Lab in Riyadh supports Vision 2030 by driving digital innovation, job creation, and global tech solutions, aligning with the Kingdom’s pledge to invest $100 billion in its technology sector. 

Saudi Minister of Communications and Information Technology Abdullah Al-Swaha, addressing industry leaders and aspiring innovators, stressed the importance of understanding market shifts.  

“I think no leader in the industry can really help educate all of us — leaders in the room, the youth, the women, the talent — about picking up market transitions and where the market is heading,” he said. 

Krishna acknowledged the growing excitement around AI but noted that for numerical purposes the technology has been in use for two decades. 

He also predicted a seismic shift in computing capabilities, with quantum computing expected to achieve a major breakthrough within the next two to three years.

“In three to five years, we will see something amazing on quantum computers,” he added.  

A key transformation Krishna highlighted was in AI training costs, forecasting a dramatic reduction. “I believe the cost of training will become 1 percent — one over 100 of what it used to be. DeepSeek was a proof point of that,” he noted. 

DeepSeek, a Chinese AI firm, gained rapid attention with its R1 large language model, released on Jan. 20 at a fraction of typical development costs.

Offered under an open-source license, DeepSeek-R1 quickly soared in popularity, with its AI assistant app topping Apple’s App Store and surpassing OpenAI’s ChatGPT. Its success triggered a stock market shakeup as investors reevaluated major US AI companies.  

While large general-purpose AI models currently dominate the field, Krishna emphasized the potential of domain-specific models, which today account for just 1 percent of usage.

“All the fascination is with these large models that serve everybody, but we believe in the next three to four years, domain-specific models will make up over half of all deployed models,” he said. 

LEAP 2025 aims to expand business networking and investment opportunities in the tech sector. The event plays a crucial role in Saudi Arabia’s goal of becoming a global technology hub, in line with Vision 2030’s economic diversification strategy.


Saudi PIF’s Alat and Lenovo break ground on new 200k sq. meter facility in Riyadh

Saudi PIF’s Alat and Lenovo break ground on new 200k sq. meter facility in Riyadh
Updated 47 min 8 sec ago
Follow

Saudi PIF’s Alat and Lenovo break ground on new 200k sq. meter facility in Riyadh

Saudi PIF’s Alat and Lenovo break ground on new 200k sq. meter facility in Riyadh
  • Facility is expected to begin production in 2026
  • Collaboration is projected to generate up to 15,000 direct and 45,000 indirect jobs

RIYADH: Saudi Arabia’s Public Investment Fund’s Alat and Chinese tech giant Lenovo have officially broken ground on a new manufacturing hub in Riyadh, marking a key milestone in their $2 billion strategic partnership.

Located within the Special Integrated Logistics Zone at Riyadh Integrated, the facility will span 200,000 sq. meters and is expected to begin production in 2026. 

The collaboration is projected to generate up to 15,000 direct and 45,000 indirect jobs while contributing as much as $10 billion to the Kingdom’s non-oil gross domestic product by 2030. 

The hub will produce millions of “Saudi Made” laptops, desktops, and servers, contributing to the nation’s Vision 2030 goals of economic diversification and industrial development. 

The two companies took a step further in their partnership during LEAP25 held from Feb. 9— 12 in Riyadh, announcing the establishment of an advanced manufacturing and technology center based on artificial intelligence and robotics. 

This is also part of PIF’s strategy to boost the Kingdom’s local manufacturing by increasing local content from 47 percent in 2024 to 60 percent by 2025, contributing $320 billion to non-oil GDP and creating 1.8 million jobs. 

“Through this powerful strategic collaboration and investment with Alat, we gain greater global presence, a strong regional foothold, and the ability to capitalize on the incredible growth momentum in Saudi Arabia and the wider MEA region,” said Yuanqing Yang, chairman and CEO of Lenovo. 

The groundbreaking follows the completion of Lenovo’s $2 billion investment in Alat, which was finalized after securing shareholder and regulatory approvals. 

Initially announced in May, the deal was completed in January and involves the issuance of three-year zero-coupon convertible bonds, establishing a long-term partnership between the two firms. 

The manufacturing facility will complement Lenovo’s global production network, which includes over 30 factories across China, Germany, India, Japan, the US, and other markets. 

According to Lenovo, the new hub will enhance supply chain resilience and improve service to customers across the Middle East and Africa region. 

The firm also plans to establish its MEA regional headquarters in Riyadh, expand research and development activities, and open a flagship retail space in the Kingdom. 

Amit Midha, the CEO of Alat, emphasized the broader economic impact of the collaboration, saying: “We are incredibly proud to become a strategic investor in Lenovo and partner with them on their continued journey as a leading global technology company.” 

Beyond manufacturing, the agreement includes a business development partnership leveraging Alat’s regional relationships and market expertise.

Alat, which aims to build advanced manufacturing capabilities across multiple industries, has outlined plans to produce goods across 34 product categories within nine business units, including semiconductors, smart devices, electrification, and artificial intelligence infrastructure. 

Lenovo, recognized as one of Gartner’s top 25 supply chains, expects the Saudi facility to strengthen its operations in the MEA region while supporting the Kingdom’s ambition to become a global technology and manufacturing hub. 


Closing Bell: Saudi Arabia’s main market gains 36 points to 12,469

Closing Bell: Saudi Arabia’s main market gains 36 points to 12,469
Updated 09 February 2025
Follow

Closing Bell: Saudi Arabia’s main market gains 36 points to 12,469

Closing Bell: Saudi Arabia’s main market gains 36 points to 12,469

RIYADH: Saudi Arabia’s Tadawul All Share Index ended Sunday’s trading in green, as it gained 35.56 points or 0.29 percent to close at 12,469.14.

The main index witnessed a total trading turnover of SR4.70 billion ($1.25 billion), with 94 stocks advancing and 134 retreating. 

Saudi Arabia’s parallel market Nomu also gained 28.38 points to close at 31,414.65. The MSCI Tadawul Index edged up by 0.28 percent to 1,550.26. 

Shatirah House Restaurant Co. was the best-performing stock on the main market, with its share price surging by 5.62 percent to SR23.68. 

The share price of Raoom Trading Co. increased by 3.7 percent to SR179.40. Rasan Information Technology Co.’s stock price also rose by 3.36 percent to SR92.30. 

Conversely, LIVA Insurance Co. saw its share price dropping by 3.31 percent to SR17.50. 

The share price of Lamasat Co. which started trading on Nomu on Sunday rose by 29.91 percent to SR7.47. 

On the announcements front, Arabian Co. for Agricultural & Industrial Investments, also known as Entaj said that it has set the price range for its initial public offering in the main market at SR46-SR50.

According to a press statement, the institutional book-building process began on Feb.9 and will run through 3 p.m. Saudi time on Feb.13. Entaj eyes floating 9 million shares on TASI, representing 30 percent of its capital. 

Bank Albilad said that its board of directors recommended a 20 percent capital top-up from SR12 billion to SR15 billion. According to a Tadawul statement, the capital top-up will be done by distributing one bonus share for every five shares held. 

The share price of Bank Albilad rose by 2.76 percent to SR39.05.


Saudi Ma’aden prices $1.25bn debut sukuk, 9.2 times oversubscribed with $11bn in orders

Saudi Ma’aden prices $1.25bn debut sukuk, 9.2 times oversubscribed with $11bn in orders
Updated 09 February 2025
Follow

Saudi Ma’aden prices $1.25bn debut sukuk, 9.2 times oversubscribed with $11bn in orders

Saudi Ma’aden prices $1.25bn debut sukuk, 9.2 times oversubscribed with $11bn in orders
  • Company said it had completed the sukuk issuance through US dollar-denominated trust certificates
  • Ma’aden’s $1.25bn Shariah-compliant bond was issued in two tranches

JEDDAH: The Saudi Arabian Mining Co., or Ma’aden, priced its $1.25 billion debut sukuk, oversubscribed by 9.2 times, with demand exceeding $11 billion for the five and ten-year tranches, according to an official statement.

In a bourse filing, the company said it had completed the sukuk issuance through US dollar-denominated trust certificates, adding that they will be listed on the London Stock Exchange’s International Securities Market and may be sold under Regulation S and Rule 144A of the amended US Securities Act of 1933.

The Tadawul statement said Ma’aden’s $1.25bn Shariah-compliant bond was issued in two tranches, including a five-year $750m tranche at 5.25 percent and a 10-year $500m tranche at 5.5 percent. The issuance includes 3,750 trust certificates for the five-year tranche and 2,500 for the 10-year, each valued at $200,000. Settlement is set for Feb. 13.

CEO of Ma’aden Bob Wilt said the success of the inaugural international sukuk offering demonstrates investors’ confidence and interest in Ma’aden’s growth, according to a press release.

“Such strong international investor demand, some of the highest seen in Saudi Arabia, is testament to global confidence in our strategic direction and the integral role we play in unlocking Saudi Arabia’s $2.5 trillion of untapped mineral potential,” the CEO said.

Wilt added that as they continue to deliver on their growth strategy, the funding will accelerate their efforts to secure essential minerals that drive the energy transition and long-term development. “We remain committed to building a globally competitive mining sector as the third pillar of Saudi Arabia’s economy.”

Louis Irvine, the chief financial officer of Ma’aden, said the “successful” sukuk issuance reflects the strength of their business, their disciplined financial strategy, and the confidence global investors have in the future of the company.

“We are particularly pleased to welcome new investors whose support will be instrumental as we continue to build mining as the third pillar of the Saudi economy, a key objective of the Kingdom’s Vision 2030. The funds raised will enable us to execute our expansion plans across all our divisions efficiently while maintaining a robust balance sheet as we move forward.”

The issuance aligns with forecasts that global sukuk offerings will total between $190 billion and $200 billion in 2025, driven by growing activity in key markets such as the Kingdom and Indonesia, according to a January analysis by S&P Global.

Global sukuk issuances totaled $193.4 billion in 2024, a slight decrease from $197.8 billion in 2023. Despite the marginal decline, the market saw a 29 percent year-on-year increase in foreign-currency-denominated sukuk, surging to $72.7 billion in 2024.

Under Ma’aden’s International Trust Certificate Issuance Program, the move highlights the company’s strong financial position and demonstrates investor confidence in its long-term growth strategy. 

The sukuk issuance proceeds will support the mining giant’s expansion initiatives and further solidify its standing as a leading mining and metals enterprise in the Kingdom and beyond.

The national mining company announced that Citi and HSBC acted as joint global coordinators, joint active bookrunners, and joint lead managers, while Al Rajhi Capital, J.P. Morgan, and SNB Capital served as joint active bookrunners and joint lead managers.

BNP Paribas, BSF Capital, GIB Capital, Natixis, and Standard Chartered Bank acted as joint passive bookrunners and joint lead managers, while HSBC also served as rating advisers.

The firm, rated “Baa1” by Moody’s and “BBB+” by Fitch, said the sukuk are expected to be rated on par with Ma’aden’s ratings.

In January, Ma’aden awarded three contracts worth SR3.45 billion ($921.58 million) for its third phosphate fertilizer plant, according to a filing with Tadawul at that time.

The company named China National Chemical Engineering Co., Sinopec Nanjing Engineering and Construction, and Turkiye-based Tekfen Construction and Installation Co. as the contractors.