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Al Mazaya Report: GCC business sectors catalysing employability

Non-oil sectors projected to grow 3.3%, 3.5% in 2019, 2020 respectively

Medium and long-term plans and strategies rolled out across the Gulf region are aimed at driving economic growth, improving productivity and creating stable job opportunities across all business platforms.

Current business reports indicate that these strategies have accelerated operating activities across key sectors, especially energy, tourism and real estate by 100%.

Al Mazaya Holding said in its weekly report that the results achieved hitherto have exceeded expectation on all economic sectors, with a number of the region’s economies have made all-embracing achievements, thanks to which they are now able to create new job opportunities under all financial and economic conditions.

According to the report, this is due to the continued expansion and introduction of new projects, and the readiness shown by the government and private entities at all levels to attract diversified economic projects, and take advantage of the ongoing developments at the global economic scene.

Al Mazaya added that the ability to create maximum job opportunities hinges upon major global economies’ ability to achieve the targeted growth rates, projected at 3% by the end of 2019 and 2020, which is slightly below the 3.1% achieved last year.

Al Mazaya projected Gulf economies to grow by 2.3% by the end of this year, driven by expansionary budgets approved for the same year, with Saudi Arabia announcing the GCC’s highest budget at SAR 1.1 trillion.

Al Mazaya added that economic stimulus programmes developed for the private sector, along with continuing infrastructure investment activities, will drive the growth of non-oil sectors and ultimately lead to the creation of many new investment opportunities and job opportunities.

Al Mazaya pointed out that all economic indicators project non-oil sectors in the region to grow by 3.3% this year and by 3.5% in 2020, which will increase employment rates and demand for skilled workers again.

Al Mazaya added the listed Gulf companies’ performance indicators reflect their ability to achieve positive results and accumulated profits, in a way that will enable them to cope with all besetting challenges that might have a bearing on their operating results.

All these positive indicators augur well for the willingness of these companies to expand, and the need for more funding, and therefore more jobs. Within this context, the combined consolidated profits of 45 listed companies in the UAE grew to AED 49.2 billion in the first nine months of this year, a growth of 17.7% compared to the same period last year. Listed companies in Saudi Arabia managed to achieve profits of SAR 64.7 billion during the same period.

Al Mazaya explained that the rise in oil prices from the low levels recorded in 2014 and subsequent years had a direct and significant impact on reviving the pace of economic activity. The rise in prices since 2017 and their stability at levels well below those targeted by producer was a challenge that had a direct and positive impact on boosting employment levels across the region. The energy, tourism, health and banking sectors led the way with the largest number of hired professionals, with the current indices indicating that job markets in the Gulf countries grew by 9% by the end of 2018.

Al Mazaya’s report touched on the population growth across the region, which represents a major factor behind the increase in the volume of projects and investment as well as employment opportunities, and ultimately enabled the Gulf countries to host the headquarters of many international companies.

For example, said the report, the Emirate of Dubai alone witnessed a population growth of 6.1% by the end of the second quarter of this year, bringing the total population to 3.272 million. The Kingdom of Saudi Arabia’s population increased to 34 million in the first half of 2019, showing a growth rate of 3.5% on the year.

The expected population growth to 37 million will lead to the launch of a large number of mega projects across Saudi Arabia, according to Al Mazaya report. The Sultanate of Oman’s population is set as well to grow by 5.8%, with the Kingdom of Bahrain expected to follow suit over the coming period.

Al Mazaya expects more prosperity across all sectors over the coming few years due to promising growth indicators, and the exceptional capabilities of the region’s banking sector, coupled with the growth recorded in the healthcare sector and the bullish outlook for the construction sector in the coming years, which means more support for investment and employment markets.