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COP16: Ƶ closes UN conference with bold commitments on environmental sustainability

COP16: Ƶ closes UN conference with bold commitments on environmental sustainability
COP 16 was held in Riyadh from December 2-13 under the theme “Our Land. Our Future.” AN Photo
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Updated 15 December 2024

COP16: Ƶ closes UN conference with bold commitments on environmental sustainability

COP16: Ƶ closes UN conference with bold commitments on environmental sustainability

RIYADH: COP16 witnessed unprecedented financial pledges totaling over $12 billion for land restoration and drought resilience initiatives, with Ƶ leading from the front.

Held in Riyadh from December 2-13 under the theme “Our Land. Our Future,” COP16 brought together over 196 countries and numerous international organizations, marking a crucial milestone in the fight against environmental challenges that threaten billions of people worldwide.

Funding pledges seen at the event included £10 billion from the Arab Coordination Group to finance global projects combating land degradation, desertification, and drought. 

Additional contributions included $1 billion each from the OPEC Fund and the Islamic Development Bank, and $150 million from Ƶ.

A legacy of action and collaboration

Saudi Minister of Environment and COP16 President Abdulrahman Al-Fadhley opened the conference with a call for intensified international collaboration to combat desertification, particularly in regions most affected by climate change.

“The Middle East, among the regions most impacted by these challenges, stands ready to lead through collaboration and innovation,” Al-Fadhley stated.

He emphasized Ƶ’s Vision 2030 as a cornerstone of the Kingdom’s green agenda. 

This vision aims to restore 40 million hectares of degraded land, increase national reserves by 30 percent, and achieve a renewable energy mix of 50 percent by 2030. 

The Saudi Green Initiative, launched in 2021, has already led to the planting of 95 million trees and the restoration of 111,000 hectares of land. The Kingdom announced five new projects valued at $60 million to ramp up climate and environmental efforts as part of the SGI.

Outgoing COP15 President Alain-Richard Donwahi of Côte d’Ivoire handed over leadership with a message of urgency, while UNCCD Executive Secretary Ibrahim Thiaw underscored that nearly 40 percent of the Earth’s land is degraded, impacting over 3 billion people. 

He warned that failing to address land degradation could lead to intensified food insecurity, conflict, and forced migration.

At the Riyadh conference, the UN Convention to Combat Desertification estimated a need for at least $2.6 trillion in investments by 2030 to restore over 1 billion hectares of degraded land and enhance drought resilience. This translates to $1 billion in daily investments until 2030 to achieve global land restoration goals and combat desertification and drought.

The International Drought Resilience Observatory, which debuted its prototype at COP16, is set to be the world’s first AI-driven platform designed to help countries evaluate and improve their capacity to withstand severe droughts. 

This cutting-edge tool is an initiative of the International Drought Resilience Alliance, which recently welcomed Ƶ as a member.




Saudi Minister of Environment and COP16 President Abdulrahman Al-Fadhley. Screenshot

The Riyadh Policy Declaration

A major outcome of COP16 was the adoption of the Riyadh Policy Declaration, a document drafted by the newly formed Friends of the Chair group. 

This declaration provides a comprehensive framework for global land restoration, drought resilience, and sustainable land management. The initiative showcases Ƶ’s dedication to fostering international cooperation and achieving tangible results in the fight against desertification.

The Kingdom’s Deputy Minister for Environment, Osama Faqeeha, highlighted the significance of this collaborative effort, saying: “The Friends of the Chair group ensures that the outcomes of COP16 are not just promises but actionable steps toward global sustainability”.

Faqeeha also underscored the urgent need for private sector investment to bridge the estimated $355 billion annual funding gap for global land restoration. 

“The restoration economy has the potential to unlock trillions in economic benefits, but it requires the commitment of all sectors,” Faqeeha stated.

Minister of Investment Khalid Al-Falih announced three major renewable energy projects developed in collaboration with French firms, emphasizing the Kingdom’s growing influence in the global green finance market.

“The future of finance is green, and Ƶ is positioning itself as the global hub for sustainable investments,” Al-Falih said.

Innovative projects and sustainability initiatives

Ƶ highlighted several transformative projects aimed at balancing economic growth with environmental preservation. 

The National Red Sea Sustainability Strategy is a flagship initiative to protect 30 percent of the Red Sea’s marine and coastal ecosystems by 2030. This strategy is expected to contribute SR33 billion ($8.78 billion) annually to the economy and create 120,000 jobs.

John Pagano, CEO of Red Sea Global, emphasized the project’s commitment to regenerative tourism and renewable energy. “We are planting 50 million mangrove trees and expanding coral reef protection, aligning with our vision of sustainable development,” Pagano said.

In a landmark announcement, King Abdullah University of Science and Technology launched the International Water Research Center to address global water scarcity and pollution challenges. 

The center will develop innovative water solutions in collaboration with the Ministry of Environment, Water, and Agriculture.

Saudi climate envoy Adel Al-Jubeir highlighted the link between land degradation and forced migration, noting that 100 million hectares of land are lost annually, exacerbating displacement and security crises. 

“When people cannot grow food, they migrate, leading to tension and conflict,” Al-Jubeir warned. The UNCCD’s Thiaw echoed these concerns, emphasizing that land restoration is crucial for global stability and security. 

The Great Green Wall, an African-led initiative was launched with an aim to restore 100 million hectares of degraded land, secured €11 million from the Italian government for landscape restoration in the Sahel, along with €3.6 million from the Austrian government to enhance coordination and implementation efforts across 22 African nations. This funding supports the GGW Accelerator, a UNCCD-backed initiative to create a greener and more prosperous Sahel.

Furthermore, the US, alongside partner countries and organizations, pledged nearly $70 million in investments to advance the Vision for Adapted Crops and Soils. This initiative aims to develop resilient food systems by promoting diverse, nutritious, and climate-adapted crops cultivated in healthy soils.

Thematic days and key dialogues

COP16 featured several thematic days addressing critical issues like sustainable agri-food systems, drought resilience, and rangeland protection, attracting more than 20,000 participants, with around 3,500 from civil society.

Agri-Food System Day coincided with World Soil Day, highlighting that unsustainable farming practices could lead to a 10 percent decline in global crop yields by 2050. 

Faqeeha called for redirecting harmful agricultural subsidies toward sustainable practices to prevent further degradation.

Youth and technology were at the forefront of COP16 discussions. Ƶ’s thriving startup ecosystem, supported by initiatives like The Garage and Vision 2030, showcased how entrepreneurship can drive sustainability. 

COP16 saw the biggest youth participation to date, building on the UNCCD Youth Engagement Strategy and Action Plan, which seeks to give the younger generation a more prominent role in land and drought negotiations and action and provide technical and financial support for initiatives. 

Prince Khaled bin Alwaleed, CEO of KBW Ventures, highlighted the synergy between venture capital and sustainable development, while Ma’aden CEO Robert Wilt emphasized the role of responsible mining in enabling the global energy transition.

Global collaboration and regional leadership

The conference featured high-profile attendees, including UN Deputy Secretary-General Amina Mohammed, who called for scaled-up restoration efforts and stronger international cooperation. 

Mayor of Riyadh Faisal bin Abdul Aziz bin Ayyaf underscored Riyadh’s ambition to serve as a model for sustainable urban development.

Hungary’s representative praised COP16 for addressing gender equality, acknowledging the essential role of women in combating desertification. 

Discussions also highlighted the need for international cooperation to address shared challenges, such as sand and dust storms, drought, and land degradation.

A path forward 

Ƶ’s successful hosting of COP16 demonstrated its commitment to shaping global environmental policies and fostering innovation. 

As attention turns to COP17 in Mongolia, the momentum generated in Riyadh is expected to drive sustained action toward land restoration, drought resilience, and a greener future for all.


Oman tourism revenues hit $5.5bn in 2024

Oman tourism revenues hit $5.5bn in 2024
Updated 9 sec ago

Oman tourism revenues hit $5.5bn in 2024

Oman tourism revenues hit $5.5bn in 2024
  • Tourism contribution to GDP rose to 2.7 billion rials
  • Government continues to adopt innovative marketing strategies

JEDDAH: Oman’s tourism sector contributed over 2.12 billion rials ($5.51 billion) to the Gulf country’s national economy in 2024, up from 1.75 billion rials in 2018, according to official data.

The latest figures from the National Center for Statistics and Information indicate that this increase reflects a compound annual growth rate of 3.2 percent, reinforcing the industry’s role as a key pillar in the sultanate’s economic diversification strategy.

The sector’s contribution to gross domestic product also rose to 2.7 billion rials, up from 2.3 billion rials in 2018, underscoring tourism’s expanding macroeconomic impact, according to the Oman News Agency.

European travelers significantly boosted Oman’s tourism sector in 2024, driving a 10.2 percent rise in hotel revenues during the first five months of the year, according to NCSI data released last July.

The country’s growing appeal among European tourists, alongside strong local and regional demand, reflects its broader strategy to diversify its tourism base and bolster the hospitality sector, in line with similar initiatives across Gulf Cooperation Council member states.

Minister of Heritage and Tourism Salim bin Mohammed Al-Mahrouqi said the growth in visitor arrivals, spending, and economic value reflects the result of focused and ambitious efforts by the ministry to promote Oman as a rich and diverse tourism destination, according to ONA.

He added that the latest indicators serve as a testament to the government’s economic diversification policies and effective inter-agency coordination that supports investment and accelerates project implementation.

Al-Mahrouqi also said that the ministry continues to adopt innovative marketing strategies, strengthen partnerships with the private sector, and develop offerings to enhance the overall visitor experience.

GDP growth forecast at 2.2% in 2025

The sultanate’s economy is forecast to grow by 2.2 percent in 2025, up from 1.7 percent the previous year, supported by a recovery in oil activities and steady non-oil sector expansion, according to the Ministry of Economy’s 2025 economic outlook.

Inflation is projected to rise modestly to 1.3 percent, up from 0.6 percent in 2024. Still, it will remain within the target range of Oman’s 10th five-year plan, aided by continued government subsidies and stable global commodity prices.

The ministry estimates GDP at constant prices will increase from 38.3 billion rials in 2024 to 39.2 billion rials in 2025. Oil activities are expected to rebound with 1.3 percent growth after a 3 percent contraction in 2024, while non-oil sectors are projected to grow by 2.7 percent.

Medium-term momentum is expected to continue through 2026 and 2027, bolstered by strategic projects and higher oil production, ONA reported.


Kuwait unveils major capital market reforms to boost efficiency, attract global investments   

Kuwait unveils major capital market reforms to boost efficiency, attract global investments   
Updated 6 min 56 sec ago

Kuwait unveils major capital market reforms to boost efficiency, attract global investments   

Kuwait unveils major capital market reforms to boost efficiency, attract global investments   

RIYADH: Kuwait has introduced a central counterparty clearing framework, upgraded brokerage standards, and streamlined settlement systems as part of a sweeping reform to modernize its capital markets and boost investor confidence. 
 
The measures, launched as part of the second stage of Phase Three of the Market Development Program, include introducing sub-account numbering to enhance transparency, as well as upgrading IT infrastructure to support future listings of exchange-traded funds and fixed-income instruments such as bonds and sukuk, according to a press release.
 
Led by Kuwait’s Capital Markets Authority in coordination with Boursa Kuwait and the Central Bank of Kuwait, the reforms aim to align the country’s financial market infrastructure with global standards while reducing risk and enhancing market depth. 
 
The Market Development Program is a strategic initiative under the country’s Vision 2035 plan, aimed at diversifying the economy, enhancing private sector participation, and modernizing key sectors such as finance, infrastructure, and technology. 
 
Mohammad Saud Al-Osaimi, CEO of Boursa Kuwait, said: “The launch of this phase reflects our unwavering commitment to developing an advanced, efficient trading environment that meets the highest international standards.”   
 
He added: “It is the product of close collaboration across the capital market apparatus and represents a key step in expanding the depth, transparency and resilience of Kuwait’s capital market.” 
  
Boursa Kuwait Chairman Bader Nasser Al-Kharafi said that the collaboration has played a vital role in advancing market infrastructure and introducing sophisticated products and services that promote a more transparent and dynamic investment environment. 
  
He added that these efforts are essential to attracting capital, generating added value for the national economy, and supporting the diversification of income sources. 
  
The measure introduced several key reforms, including the implementation of a Central Counterparty Framework to reduce settlement risks and align clearing processes with global standards.  
  
It also streamlined cash settlements through the KASSIP system, facilitating smoother transactions via local banks and the Central Bank of Kuwait. Additionally, brokerage firms were upgraded to “Qualified Broker” status to enhance market structure, while sub-account numbering was introduced to improve transparency under omnibus accounts.  
  
Furthermore, IT infrastructure upgrades were made to prepare for the introduction of ETFs and fixed-income trading, including bonds and sukuk, pending necessary legislative changes. 
  
This phase marks one of the most significant overhauls since the privatization of Boursa Kuwait, reinforcing the market’s role in driving economic growth.   
 
“We greatly value the remarkable efforts that have driven the various phases of the Market Development Program for Kuwait’s capital market, a reflection of the power of constructive cooperation between the public and private sectors, which stands as a national model for realizing economic objectives and development ambitions rooted in innovation and professionalism,” Al-Kharafi said. 
     
The CMA and Boursa Kuwait reaffirmed their commitment to further developing the market’s infrastructure, supporting sustainable growth, and reinforcing Kuwait’s status as a premier investment destination.   
  
Privatized in 2019, Boursa Kuwait operates one of the GCC’s oldest exchanges, driving market modernization and emerging-market reclassification. 


Majority Saudis use AI tools to make travel decisions: Survey

Majority Saudis use AI tools to make travel decisions: Survey
Updated 23 min 20 sec ago

Majority Saudis use AI tools to make travel decisions: Survey

Majority Saudis use AI tools to make travel decisions: Survey
  • 46% of Saudi travelers are using AI assistants to discover activities
  • 46% prioritize safety and security when selecting destination

RIYADH: Saudi travelers are increasingly relying on smart technologies, with 87 percent using generative artificial intelligence tools like ChatGPT and Gemini to plan and manage their vacations, according to a survey. 

In its latest report, global consumer insights provider Toluna revealed that 46 percent of Saudi travelers are using AI assistants to discover activities, while 43 percent use them for translation purposes. 

These findings align with the broader trend observed in the Kingdom, where the number of people using AI tools is increasingly rising. 

In June, a report prepared by Google with UK-based research agency Public First showed that 80 percent of Saudi adults use AI tools, with one in three utilizing them regularly. 

This is nearly double the share of adults in the US who report using large language model-based chatbots, which stood at 52 percent according to a study by Elon University in North Carolina.

“AI is becoming a trusted travel companion, and not just among younger generations. From finding hidden gems and translating on the go, to getting activity suggestions, young Saudi travelers are making the most of AI to enhance every part of their journey,” said Georges Akkaoui, enterprise account director Middle East, Turkiye, and Africa at Toluna.

The survey said 43 percent of Saudi travelers use AI to find the best deals, while 31 percent rely on these technologies to optimize their itineraries, and 38 percent use them for restaurant suggestions. 

“What is interesting is that this (use of AI) is not limited to the tech-savvy; we are seeing notable adoption even among older travelers, with over 40 percent of 45–60-year-olds also using AI for deals, activities, and translation,” said Akkaoui. 

He added: “In fact, less than 15 percent of respondents are not using AI for their travels. This shows that generative AI is no longer niche, it is becoming mainstream, cross-generational, and it is already reshaping how people prepare for and experience their trips.” 

These findings also underscore the progress of AI adoption in Ƶ, with the technology emerging as a key component of the Kingdom’s post-oil economic development strategy. 

According to the Global AI Competitiveness Index released in January, the Kingdom ranked 15th globally in research output in the sector, having produced 29,639 AI-related publications.

This ranking places it among the top contributors to global research and highlights its emerging role as a regional technology leader.

Ƶ’s Public Investment Fund, in partnership with Google, launched Project Transcendence in 2024, a $100 billion undertaking, as part of its efforts to advance the growth of AI.

The initiative is set to bolster the growth of local tech startups, generate employment opportunities, and foster collaborations with global technology firms, positioning the Kingdom at the forefront of regional innovation.

Traditional sources remain strong

Despite the significant adoption of AI tools in the travel sector, traditional information sources, along with influencers and online recommendations, continue to play an important role in shaping travel decisions among Saudi travelers.

The Toluna survey said 41 percent of the Kingdom’s travelers still rely on recommendations from family members and friends. 

Some 46 percent of Saudi travelers prioritize safety and security when selecting destinations, while 48 percent consider scenery as the decision-making factor. 

“Despite having access to more information than they can possibly digest, and probably because of that overload, many still turn to those they trust for inspiration, with family and friends remaining an important source of travel recommendations,” said Akkaoui. 

“At the same time, it is not surprising that, as with other aspects of their lives, younger travelers also rely on influencers and online recommendations for ideas and inspiration, showing how digital and personal guidance now shape the travel journey side by side,” he added.

Meanwhile, 47 percent of the respondents plan to travel internationally this summer, while 37 percent are opting for leisure trips within the Kingdom. 

Only 4 percent of respondents reported having no travel plans, highlighting a strong overall appetite for summer travel.

Underscoring the growth of domestic tourism in May, Ƶ’s Tourism Minister Ahmed Al-Khateeb said the Kingdom is placing human-centered travel at the forefront of its tourism strategy, focusing on authentic cultural experiences, meaningful interactions, and community engagement. 

He added that this people-first approach is designed to balance the nation’s rapid infrastructure development with heritage preservation and stronger community connections. 

The National Tourism Strategy targets 150 million annual visitors by 2030, after surpassing the 100 million milestone ahead of schedule, with official data showing the Kingdom welcomed 116 million tourists in 2024, exceeding its annual target for the second consecutive year.

Turkiye, the most preferred destination

The survey found that 19 percent of Saudi travelers prefer Turkiye as their favorite destination to visit, followed by Egypt at 15 percent, the UAE at 14 percent, and the US at 10 percent. 

Additionally, 8 percent of respondents are heading to Switzerland, 7 percent to the UK, France, and Thailand, while 6 percent have chosen Italy as their summer destination.

“While Turkiye remains the top destination across all age groups, younger travelers show a stronger interest in long-haul and East Asian locations. For example, Japan appeals to 14 percent of 18–28-year-olds, compared to just 3 percent of those aged 29–44, and 0 percent among travelers aged 45–60,” said the report. 

In contrast, 14 percent of older travelers aged between 45 and 60 are planning a trip to the UK, a destination that sees less interest from younger respondents as a summer getaway. 

In terms of spending, most international travelers are willing to invest significantly in their summer experiences. 

The report also said 40 percent of Saudi travelers are planning to set aside more than SR10,000 ($2,666.39) per person on their trips, while 22 percent expect to spend between SR7,500 and SR10,000. 

Some 21 percent of the respondents are ready to spend between SR5,000 and SR7,500, while 15 percent are planning to budget between SR2,500 and SR5,000. 

The report further said that 40 percent of respondents regularly use eSIM cards while traveling, with 21 percent having tried it before and 20 percent expressing interest despite limited familiarity. 

“The evolving travel preferences of Saudi residents reflect broader global shifts toward more connected, experience-driven tourism,” said Akkaoui. 

“Whether it is the desire for natural beauty, the pursuit of cultural depth, or the appeal of cooler summer climates, today’s travelers from the Kingdom are more informed, digitally empowered, and adventurous than ever before,” he added. 


GCC expats can now invest directly in Saudi main market

GCC expats can now invest directly in Saudi main market
Updated 13 July 2025

GCC expats can now invest directly in Saudi main market

GCC expats can now invest directly in Saudi main market
  • Move promotes openness of market internationally
  • Draft was open for 30 calendar days for public consultation

RIYADH: Residents of Gulf Cooperation Council countries, including expatriates, can now directly invest in Ƶ’s main stock market for the first time, under new regulations announced by the Capital Market Authority. 

The reform, unveiled by CMA Chairman Mohammed El-Kuwaiz, removes previous restrictions that limited access to swap agreements or required investors to go through licensed intermediaries. It applies to current and former residents of Ƶ or other GCC states, according to an official announcement. 

The initiatives align with the Kingdom’s economic diversification goals under Vision 2030, which seeks to deepen capital markets and attract global capital. By streamlining account openings and broadening access, the CMA aims to enhance liquidity, transparency, and investor confidence.  

In a post on X, El-Kuwaiz said the move “promotes the openness of the market internationally, while at the same time building a long-term investment relationship with wider segments of investors around the world, within the framework of a more flexible and attractive regulatory environment.” 

In a separate statement, the CMA said the updates would “enhance the attractiveness of the Saudi capital market for local and international investors, increase the level of investor protection, and strengthen the confidence of market participants.” 

The amendments were approved following the CMA’s publication of the draft on Nov. 20, 2024, titled “Facilitating the Procedures for Opening and Operating Investment Accounts for Various Categories of Investors.” 

The draft was open for public consultation for 30 calendar days via the Unified Electronic Platform for Consulting the Public and Government Entities, affiliated with the National Competitiveness Centre, and the CMA’s website. 

The GCC investor expansion is part of a wider regulatory overhaul unveiled by the CMA last week to modernize Ƶ’s investment fund landscape. 

Key reforms included expanded distribution channels, allowing investment fund units to be distributed through licensed digital platforms and fintech firms approved by the Saudi Central Bank. 

Stronger governance measures have also been introduced, including new safeguards for fund manager transitions, which require CMA approval and a 60-day handover period to protect investors. 

REITs listed on the parallel market now have greater flexibility, as they can invest in development projects without strict asset allocation limits, potentially enhancing returns. 

The latest regulatory changes represent another strategic step to deepen liquidity, attract foreign capital, and position the Saudi Exchange as a leading money market in the region. 


The battle for talent: Ƶ’s high-stakes bet on human capital

The battle for talent: Ƶ’s high-stakes bet on human capital
Updated 12 July 2025

The battle for talent: Ƶ’s high-stakes bet on human capital

The battle for talent: Ƶ’s high-stakes bet on human capital
  • Kingdom’s rapidly expanding sectors are creating an unprecedented demand for highly skilled professionals

RIYADH: As Ƶ accelerates its transformation under Vision 2030, a critical question has emerged: Can the Kingdom build a homegrown tech workforce strong enough to power its digital ambitions?

From artificial intelligence and smart mobility to fintech and clean energy, the Kingdom’s rapidly expanding sectors are creating an unprecedented demand for highly skilled professionals. Yet despite billions in investments and major infrastructure rollouts, supply still lags behind demand.

This challenge, however, is far from ignored.

“We are proud to take human capital development to the next level,” said Minister of Human Resources and Social Development Ahmed Al-Rajhi, during the launch of the National Skills Platform in April 2025. “Technical expertise alone is not enough. Leadership, strategic thinking, and adaptability are equally important, and skilling and reskilling for the workforce is a national priority that all stakeholders should engage in.”

The AI-powered platform connects Saudi job seekers to customized learning pathways, marking a shift toward demand-driven education and training.

Despite billions in investments and major infrastructure rollouts, supply still lags behind demand. (SPA)

A national priority

Education Minister Yousef Al-Benyan, who also chairs the executive committee of the Human Capability Development Program, emphasized the broader purpose behind the Kingdom’s reforms.

“Vision 2030 is not just a roadmap for national transformation — it is a model for how investment in people can drive sustainable progress,” Al-Benyan wrote in an April op-ed for Arab News titled “Vision 2030: Elevating human capability in a changing world.”

Citing the World Economic Forum’s Future of Jobs Report 2025, he noted that while 170 million new jobs will emerge globally by 2030, another 92 million will be displaced. He warned that 44 percent of core skills are set to change within five years, with digital and AI literacy becoming as fundamental as reading and math.

“Without these,” he wrote, “individuals are unable to participate meaningfully in today’s digital economy.”

Yousef Al-Benyan, Saudi education minister. (Supplied)

Scaling up training and inclusion

This outlook is shaping some of Ƶ’s most ambitious workforce initiatives. Among them is the Waad National Training Campaign, launched in 2023 and supported by more than 70 organizations. The program surpassed 1 million training opportunities in its first phase and now targets 3 million by the end of 2025.

Waad’s Women’s Employment Track has been particularly successful, with a 92 percent retention rate in tech roles—contributing to a record rise in female participation across the digital economy.

Waad, Al-Rajhi noted, is an investment in “the promise of human potential.”

Meanwhile, the Future Skills Training Initiative, led by the Ministry of Communications and Information Technology since 2020, has provided training to hundreds of thousands of Saudis in areas like cybersecurity, data science, and cloud computing. Supported by the Digital Skills Framework and private-sector partnerships, it has grown steadily.

One such partnership — a 2023 collaboration with IBM — aimed to train 100,000 Saudis in AI and machine learning.

Ahmed Al-Rajhi, Saudi minister of human resources and social development. (Supplied)

Talent gaps persist

Despite this progress, a 2025 report by Nucamp and the ministry highlighted a 20 percent shortfall between tech job vacancies and qualified local talent. Critical roles such as AI engineers, cloud architects, and data analysts remain in short supply.

“Demand for AI and cloud experts far exceeds supply,” said Ahmed Helmy, managing director for SAP in the Middle East, in an April interview with Asharq Al-Awsat. The result: fierce competition among employers.

To meet short-term needs, Ƶ is tapping into international expertise. The Premium Residency Program, launched in 2021, allows skilled foreign professionals to live and work in the Kingdom without a local sponsor. By late 2023, more than 2,600 had taken advantage of the scheme.

In 2024, five new visa categories were introduced to attract investors, entrepreneurs, and tech specialists. These include provisions that exempt founders from Saudization quotas for their first three years—providing flexibility to scale teams while supporting local hiring in the long term.

“Such incentives allow skilled professionals to have a more stable life and make long-term investments in their careers in Ƶ,” said Raymond Khoury, partner at Arthur D. Little, in May.

Still, officials stress that international hiring is a stopgap — not a substitute.

“While attracting global talent is crucial, sustainable growth depends on balancing international expertise with local knowledge development,” said Mamdouh Al-Doubayan, MENA managing director at Globant.

To that end, foreign hires are increasingly being integrated not just as employees, but as mentors and trainers.

Startups adapt with remote models

In the private sector, startups are turning to remote hiring to bypass local talent shortages. A 2024 study by Wamda found that many Saudi companies are building distributed teams, sourcing tech talent from Egypt, Jordan, and other regional markets. This strategy shortens hiring cycles and enables around-the-clock operations.

The trend aligns with the Kingdom’s Telework Initiative, which certifies employers to offer remote roles to Saudis—especially women and those living outside major urban centers.

Competitive pressures from giga-projects

The hiring challenge became especially acute in 2023. That year, PwC’s Middle East Workforce Survey reported that 58 percent of Saudi firms struggled to fill key tech roles. A MAGNiTT report found that 65 percent of startup founders saw the shortage of senior tech talent as their top obstacle.

A concurrent survey by Flat6Labs noted that many startups were delaying product launches due to staffing shortages, losing talent to mega-projects offering 30 to 50 percent higher salaries.

“Engineers and product managers often defect to deep-pocketed giga-projects that offer salaries 30–50 percent above startup pay,” wrote venture adviser Aditya Ghosh in a November 2023 LinkedIn Pulse column.

Bridging the divide

Education leaders are working to close this gap. Khalid Al-Sabti, chairman of the Education and Training Evaluation Commission, said in a 2024 Arab News interview that Ƶ is aligning its curriculum with global benchmarks.

“We must ensure our graduates meet international standards to compete globally,” he said.

This includes revising curricula, emphasizing hands-on projects, and embedding industry into the classroom through partnership programs. The Talent Enrichment Program, for example, spans 160 countries and offers global certifications to Saudi learners.

Encouragingly, Ƶ’s position in the IMD World Talent Ranking improved in 2023. Companies such as STC, Aramco Digital, and Elm are now hiring directly from local boot camps and training centers — evidence that education and industry are beginning to align.

The road ahead

Ultimately, the success of Ƶ’s tech talent strategy will be measured not just by enrollments or credentials, but by how effectively new graduates are absorbed into the workforce.

If current reforms continue at scale, the Kingdom may not only satisfy its domestic tech demand — but emerge as a regional hub for digital talent.

As Al-Benyan wrote: “By investing in people, fostering global collaboration, and redefining the future of work, Ƶ is demonstrating that human capability is the ultimate driver of progress.”