July 12, 2024

The non-oil private sector economy of Saudi Arabia witnesses its fastest ever growth for the past 4 years

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Although the kingdom’s non-oil economy has continued to flourish this accounting year to its swiftest for the past 4 years since 2015, the unemployment level has also continued to rise.

Saudi Arabia’s long wait for the employment race got even stiffer and even though there is a huge surge in the non-oil private sector, the prevailing situation has not yet changed off completely.

According to IHS Markit, the overall business facelift for the kingdom’s non-oil private sector that has surged ahead at its swiftest pace since August 2015, the negative part is that the employment gains from all collective fields are not up to the mark and is on a decline even during September. As well as the average standout payment has witnessed a “small decline curve”.

Comparatively in a complete contrasting scenario, IHS PMI (Purchasing Managers’ Index) for Middle Eastern bordering country UAE remains unchanged and is far at its bare minimum level for almost as marked in a decade. However, there is definitely a considerable level of the boom in employment level as it surged in October.

According to a statement as reported by Amritpal Virdee, an economist at IHS Markit, “the Kingdom’s growth momentum maintained a steady inroad during the month of October; however, it lacked the same swift momentum for the growth in employment as it was found bare minimum”.

Unemployment in the Kingdom is on the rise despite the non-oil growth this year is to be the swiftest since 2015. It reflects the mirrored image of the persistent weaknesses created by a lack in business confidence that’s become as worse as by a string of financial reforms thanks to the likes of stringent new taxes and financial costs.

Joblessness among natives has surged higher than twelve percent for the past 3 years, particularly testing the patience of young Saudis making an entry into the labor market in proliferating numbers.

“Firms operational in Saudi Arabia’s non-oil economy remained reluctant to procure on the further workforce,” IHS Markit stated within the report.

“According to anecdotal proof, additional workers were recruited only so as to satisfy company growth plans and not as to improve the economic scenario and improve production standards.”

Despite all the fallout, Saudi Arabia still remains at the forefront of being adjudged second-largest economy in the region and continues to grow at its swiftest ever pace since 2015. In the next period of ten years 2020-2030, the Kingdom is propelling all its young brigade to emerge as the best economy in the tertiary and thereby add a newer dimension to its surging economy especially through the non-oil private sector.

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