Saudi Gazette report

RIYADH — Saudi Arabia is making significant strides toward achieving its unemployment targets outlined in the "Vision 2030", which set a goal of 7 percent unemployment among its citizens.

In the second quarter of the current year, the unemployment rate for Saudis dropped to 8.3 percent from 9.7 percent during the same period last year, reflecting the government's commitment to eradicating unemployment by creating job opportunities in the local market.

In tandem with the goals of the Saudi Vision, which focuses on empowering women and enhancing their economic participation, Saudi efforts have led to an unprecedented decrease in the unemployment rate for Saudi women in the second quarter, reaching 15.7 percent from 19.3 percent in the second quarter of 2022.

The International Monetary Fund (IMF) praised reforms undertaken by Saudi Arabia in the labor market and digitization. These sectors have played pivotal roles in the major transformation underway in the Kingdom, according to the IMF, which stated that "this year represents a crucial turning point as the midpoint of the ambitious journey of Saudi Arabia toward Vision 2030."

The IMF clarified that the percentage of skilled Saudis has risen from 32 percent in 2016 to 42 percent in 2022. The contribution of Saudi women to the labor market has doubled in the past four years, reaching 37 percent, surpassing the targets set by Vision 2030. Additionally, the contribution of the digital sector to overall growth has increased from 0.2 percent in 2016 to 15 percent in 2022.

In another aspect, the IMF affirmed that the Saudi economy is undergoing transformation, implementing reforms to reduce dependence on oil, diversify income sources, and enhance competitiveness. It noted that non-oil revenues doubled in just four years, driven by the implementation of value-added tax and high-level legislative compliance. Non-oil exports reached a record high of $84.4 billion in 2022, while the share of services and manufacturing increased by 15 percent over the past two decades. The tourism sector contributed 4.5 percent to the gross domestic product.

The IMF reiterated its expectation that non-oil growth will remain close to 5 percent in 2023, driven by strong domestic demand.