maharah quarterly newsletter newsletter.pdf5 programs aimed at realizing the saudi government’s...

MAHARAH QUARTERLY NEWSLETTER

Issue 1, Q1, 2019

5 Programs Aimed at Realizing the Saudi Government’s Efforts for Nationalization

Pg 4

The Kingdom’s 2030 Vision: How the National Transformation Program framework is Being Leveraged

Pg 8

Emerging sectorsthat are likely to benefit from Saudi Arabia’s diversification drive

Pg 10

Directionsin which Saudi Arabia Labour Market Regulations are headed

Pg 6

FOREWORDYousef AlghafariCEO, Maharah Human Resource Company

TABLE OF CONTENT

Research articles 04

Client spotlight 14

Maharah’s latest news 17

Reforms agenda 25

Noteworthy quotes 29

Skills to kill 30

Jobs in demand 32

Industry profile 33

Challenges of the Saudi economy by Mr. Abdulaziz Alshaikh 13

Foreword 03

3Maharah Quarterly Newsletter - Issue 1, Q1, 2019

FOREWORDThe business environment in Saudi Arabia has undergone sweeping changes in the recent past. Reforms ushered across sectors following the dramatic fall of oil price in mid-2014 has revamped the business landscape. Saudi Vision 2030 that seeks to transform the country into a ‘knowledge-based economy’ has injected new vigor and dynamism. The focus on developing the skill sets of nationals has assumed prime importance. Consequently, we have witnessed the launch of many private vocational training institutes to train people for jobs in various sectors such as renewable energy, mining, infrastructure, transportation, and tourism.

We have witnessed affirmative action from the government authorities to create jobs for the nationals. Policies are being redrawn to alter the labor market dynamics, and it has impacted organizations of all size and across industries. Incentives are being provided and quotas are set to increase the proportion of nationals in employment; alternatively, the cost of employing expats is being steadily raised. Given these developments and the increasing competition for human capital, the role of employment agencies is transforming at a quick pace to provide value addition to organizations.

To achieve the national agenda and play a constructive role in the development of Saudi Arabia, Human Recourses Companies HRCs are revamping their service offerings. Training, certification programs, and re-skilling opportunities are being offered to enhance the skill sets of job seekers. Job fairs have increased, and technology is being deployed to assess the candidate skills and to match them with potential employers.

Maharah Human Resource Company has successfully confronted the economic challenges and turned them into opportunities for its growth. It is with pride that we would like to register that Maharah Human Resource Company is one of few companies operating in Saudi Arabia that has been able to attract and sponsor candidates from various professionals and different countries, by utilizing the 120,000 work visa provided by the Ministry of Labor.

On this note, it gives me immense pleasure to launch the first edition of our Newsletter. The newsletter is conceptualized to discuss the latest developments, deliberate upon innovative strategies and keep abreast of policy changes that shall be helpful for all organizations in developing their HR capabilities, and assist HR personnel in staying updated. We are privileged to connect the employers with prospective employees and shall continue to strive in developing innovative, cost-effective and time-bound solutions for the same.

Yousef Alghafari CEO, Maharah Human Resource Company

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RESEARCH ARTICLES5 Programs Aimed at Realizing the Saudi Government’s Efforts for Nationalization

Presently, oil is still the dominant factor driving the economic growth of Saudi Arabia. The Saudi economy is estimated to grow at 1.8% in 2019 and at 2.1% in 20201. In the past, to achieve its economic expansion, Saudi relied heavily on foreign workers to meet the demands for a skilled workforce. However, increasing reliance on the expat workforce was resulting in unfavorable economic outcomes. Therefore, policymakers are now focusing on the ways to reducing dependence on expat labor and increasing national labor market participation. An integral aspect of Saudi Vision 2030 is, therefore, to reduce the number of unemployed nationals. As part of Saudi Arabia’s ongoing drive to include more representation of citizens in the private sector, the Ministry of Labor and Social Development (MLSD) along with the Human Resources Development Fund (HRDF) is implementing various programs of nationalization.

Nitaqat

Nitaqat is the program of Saudization, introduced in 2011 that aimed at increasing the employment of Saudi nationals in the private sector of the country. It seeks to address the critical concerns that Saudi labor market has been facing such as low employment of nationals, key positions being held by foreign labor, low productivity, lack of female employees’ participation in the workforce, the mismatch between skill and demand for the labor market. Nitaqat uses the rating system to assess compliance and classify organizations into four zones - platinum (full compliance), green (good compliance), yellow (low compliance) and red (no compliance).

As per Nitaqat, employers in the private sector with over 9 employees are required to hire a certain percentage of Saudi nationals, in accordance with the industry in which the company operates and the number of employees in the company. Those companies having less than 10 employees are not included in the zoning system, but it is, however, mandatory to hire at least one Saudi national.

Source: Gulf Research Center

1 IMF

Table 1: Nitaqat System

Number of Employees Size Saudization

requirement

1-9 Micro enterprise Exempt from Nitaqat

10-49 Small 5-24%

50-499 Medium 6-27%

500-2,999 Large 7-30%

+3000 Big 8-30%


Under the Nitaqat scheme, companies will need to provide a Saudization certificate before carrying out specific corporate actions such as license renewal. In case the target is not met, the action may be blocked and sanctions may be imposed.

Parallel Nationalization

Parallel Nationalization or Parallel Nitaqat is introduced to support those companies that face difficulty in finding Saudi nationals with adequate skills or training. The service gives provision for the company to move up to the required level of Saudization, without hiring Saudi nationals. The system provides a calculation of the service cost, based on how far the company is from achieving compliance with Saudization, required to be paid to the Human Resources Development Fund (HRDF) which will further sponsor the training and development of Saudi skills.

Saifi

Although the “Saifi” initiative was first announced in 1997, its implementation became a requirement in July 2017. The program aims to promote a better understanding of the scope, needs, and expectations of the local labor market within Saudi Arabia and to promote the training and development of Saudi nationals. Saifi requires private companies to select student interns for a training program during the summer holidays, wherein the trainee should be paid a minimum amount of SAR 1500 per month as a stipend.

National Labor Observatory and Saudi Labor Market Indices

The National Labor Observatory (NLO) and Saudi Labor Market Indices are the latest initiatives of Human and Resources Development Fund (HADAF) aimed at regulating and enhancing the labor market by providing evidence-based intervention that would

contribute towards strategic transformation. The NLO would provide the data and insights on major topics pertaining to the labor market in the Kingdom to stakeholders, business partners, and experts. The Saudi Labor Market Indices will be created by the NLO, which would also develop definitions which are concerned with indices from subscribers of social insurance in the private sector, as well as that of job stability, the hiring of Saudi graduates, and the firms that come under Nitaqat Saudization program.

Councils

The Ministry of Labor and Social Development plans to set up national and regional councils with the aim to instigate public private partnerships (PPP) and handle the factors that pose a challenge to carry out the economic plan outlined in the National Transformation Program 2020 (NTP) and Saudi Vision 2030. The establishment of councils attempts to enhance the cooperation among representatives of the private sector, companies, chambers of commerce and public entities which will result in laying out effective policies that would overcome various issues and exchange best practices in the empowerment of the sectors so that they can achieve their growth objectives.

In Q4, 2018, Saudi Arabia announced the decision to restrict 43 professions in the retail sector as part of its efforts to curb unemployment among the Saudi youth. The Ministry of Labor plans to regulate employment in 12 retail sub-sectors over three phases to make more options available to the citizens. More than 40 types of retail professions, including those dealing with cars, clothes, and furniture, will be off-limits to expats. The Saudi government plans to restrict 44 designations within 5 sub-sectors including jobs in medical supplies and equipment, auto parts, building and construction materials, carpets, bicycles, and confectionery shops.

6

Conclusion

Nationalization of jobs in Saudi Arabia is planned across sectors. A recent development is a cooperation between the Ministry of Labor and Social Development, Ministry of Housing, Human Resources Development Fund (HADAF), the Council of Saudi Chambers and the Saudi Contractors Authority (SCA) that aims to create 80,000 jobs in the real estate and contracting sectors. This is expected to increase Saudization and promote the growth of these sectors, keeping in line with the Kingdom’s National Transformation Program and Vision 2030.

Another sector that is targeted is Information and Communications Technology (ICT), which requires trained national labor that will support the digital transformation process. The sector has already recorded an increase in nationalization from 37 %in 2016 to 43% in 2018 and women’s participation increasing from 11% in 2016 to 13% in 2018. Specialized training in disruptive technologies such as artificial intelligence, blockchain, data security, and robotics are provided to enhance the capabilities of the nationals and make them more competent in the field.

Evidence-based policy formulation, coordinating the market forces, and incentives in the labor market are critical for Saudization. It is of paramount importance that there is coordination and consultation between the government, the private sector, and the public so that policies related to Saudization are readily acceptable and executable.

Directions in which Saudi Arabia Labour Market Regulations are headed

KSA on a Reform Spree

Saudi Arabia has introduced many reform measures across various sectors to facilitate economic growth, attract investments and improve the standard of living. In the labour markets, chief among the various efforts undertaken by the Ministry of Labour and Social Development (MLSD), include enlarging job opportunities for the nationals and increasing the appeal of private sector jobs for both the individuals and the firm.

Job reservation for the nationals to reduce unemployment

In order to raise the participation of Saudi citizens and provide them with jobs in the private sector to curb the rising unemployment, the Minister of Labor and Social Development, Dr. Ali bin Nasser al-Ghafis, issued a directive which shall affect employing foreigners from 12 retail sub-sectors. Following the directive, roles in over 43 retail activities such as selling watches, perfumes, electronics, automobiles, furniture, and garments stand to be impacted. As per the guidance paper released by the MLSD, Saudization quota for the sub-sectors is set at 70 percent. The implementation of the same is expected to be done in various phases over the years.

Job reservation for Saudi nationals was extended to other sectors including the healthcare. The role of pharmacists is set to be 40 percent reserved for the nationals by the end of 2019 and 100 percent reserved for the nationals by the end of 2021.


Expat fees to reduce reliance on foreign workers

Though the jobs in the private sector are reserved for the Nationals, the citizens prefer working in the public sector due to the job security and high salaries that it offers. Alternatively, the private sector companies are enticed to recruit expats as their salaries and wages are relatively low. To remove this salary differential, discourage hiring expats and to encourage companies to consider and recruit nationals, the Ministry has introduced fees for employing expats. The ‘expat fees’ payable by the companies is set to remove the cost advantages of hiring an expat over the national. An annual fee of SAR 6,000 needs to be paid for every expat employee and SAR 7,200 is applicable if the expat employees exceed the number of Saudi employees. The charges are set to rise in the year 2020 to SAR 8,400 and SAR 9,600, respectively.

Recently, King Salman approved a plan that allocated SAR 11.5billion to ease the levies incurred by businesses. According to the Saudi Press Agency (SPA), the amount would be utilised to reimburse payments that some companies have already made and exempt others who are yet to make the payment. However, to qualify for it, business should have made progress in hiring Saudi nationals.

Women in the workforce

To encourage women participation in the workforce, the Saudi government has reserved certain jobs only for women. Shops/sections selling women’s products must be staffed only with women. The removal of driving ban in June 2018, which was perceived to be hindering their movement/access to workplaces has opened up work opportunities. As a result, from September 2018, the above said jobs are reserved for Saudi Woman.

To boost the safety quotient of women and safeguard their dignity Anti-Harassment Law was introduced

in June 2018 that criminalizes sexual harassment. Employers now need to take the necessary steps to prevent the occurrence of harassment. As per the workplace regulations,

• Employers must ensure that women employees are provided with their own space/section that is segregated from the men.

• Women may not be employed for night work except in special situations such as nurses in hospitals.

• Women aren’t allowed to be employed in industries that are hazardous in nature.

• Women staff need to wear modest and non-transparent clothing.

Employers must also ensure appropriate systems are in place to receive and register complaints. Procedures to confidentially deal and provide remedial actions against breach of law must be in place.

Workplace safety & workers health

Regulations were promulgated to provide a safe working environment for the workers. The new regulations introduced in July 2018 is applicable for all firms with over 50 or more employees. Under this, based on the operating environment, the workplace is categorized into three different risk segments namely, high, medium and low-risk environments. The regulation also charts out minimum requirements that need to be met by all the firms.

These include having a clear written policy concerning safety, training for employees regarding health and safety at the workplace. Measures to manage risk should be in place. Periodic assessments pertaining to workplace safety and health of employees needs to be done. The requirements increase as we move higher on the risk ladder. For work environment classified as high risk, records of work injuries and accidents need to be maintained.

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2 Saudi Gazette3 National Transformation Program Delivery Plan 2018-20204 IMF Country Report No. 18/264

Launch of New Labour Courts

In November 2018 labour courts that have the jurisdiction over all the cases related to the labour law have been launched across major cities. Subsequently Amicable Resolution Department was established in all labour office to mediate on labour disputes. Mediation is imperative for all conflicts and only if it’s unsuccessful would it be referred to a labour court.

Conclusion

Saudi Arabian labour market is being overhauled and is witnessing rapid changes. The employment agencies have embraced this as an opportunity to provide appropriate services that shall support in the process of workforce development. Employment agencies have started to offer training and educational programs, to effectively reskill the nationals. They help find positions for unemployed people at private firms and alternatively help private firms in the recruitment process to meet Saudization norms. Job fairs and online portals are now a commonplace that shall serve a platform for job seekers and potential employers.

The Kingdom’s 2030 Vision: How the National Transformation Program framework is Being Leveraged

The Saudi Ministry of Labor and Social Development (MLSD), in the recent the past, announced several initiatives and strategic incentives to spur nationalization of jobs in multiple sectors2. The KSA’s “Vision 2030” comprises 96 strategic objectives, overseen by a number of Key Performance Indicators (KPIs)3. For this, the Council of Economic and Development Affairs has established an integrated governance model with the objective of rendering “Vision 2030” into multiple Vision Realization Programs (VRPs).

Closely tied to the “Vision 2030” initiative is the National Transformation Program (NTP) that aims to achieve what it terms as Governmental Operational Excellence, Improving Economic Enablers, and Enhancing Living Standards. What the three entails are illustrated in the table below.

The NTP is mapped into eight themes, one of which is Labor Market Accessibility and Attractiveness. It is constituted by the following objectives.

1. Increase women’s participation in the labor market.

2. Enable integration of people with disabilities in the labor market.

3. Improve working conditions for expatriates.

4. Effectively attract suitable global talent.

Clearly, the MLSD is playing a critical role as part of “Vision 2030” in terms of reducing the unemployment of Saudis4. Increasing the overall size

Source: KSA National Transformation Program Delivery Plan 2018-2020 (Verbatim)

Table 1: KSA National Transformation Program (NTP) aims

Improving Economic Enablers

Achieving GovernmentalOperational Excellence

EnhancingStandards of Living

The aim is to support achieving the Kingdom’s Vision 2030 by:supporting the growth of the private sector, raising labor market attractiveness, ensuringsustainability of vital resources,and developing tourism andnon-profit sectors.

The aim is to raise the quality of government services that are provided to individuals as well as private and non-profit organizations.

The aim is to provide beneficiaries (individuals, private and non-profit sectors) with improved systems of social services, healthcare, and safety.


of the Saudi private sector, with particular emphasis on small businesses, and revamping the national education system to equip young Saudis with the right skills they require to be productively deployed in the private sector are some of the key initiatives.constituted by the following objectives.

A wide range of strategic labor market interventions build around the Nitaqat scheme of employment quotas is coming into play, involving steps like sole priority for nationals in select sectors, ramping up fees on expatriates and their dependents, developing and implementing an array of wage subsidies for Saudis, and interventions to encourage female employment, etc.

An overhauled Nitaqat (or Saudization) program with the sector- and company-size based employment quotas to mandate firms to employ Saudis was introduced in 2011. Under the program, quotas for hiring Saudis in private sector companies were introduced, with penalties or benefits applying depending on the degree of a company’s compliance with the Saudization targets. Amendments to the Nitaqat program were introduced in mid-2017, which increased the mandatory employment proportion of Saudis to expatriate personnel. Also, other steps were introduced between 2016 and 2018 to stop the employment of expatriate workers in select retail sectors (e.g. gold and jewelry businesses, mobile phone, etc.).

In parallel, unemployment assistance programs target facilitation of job matching. The current two principal unemployment assistance schemes are Hafiz and Sanid, which provide Saudi job seekers with a monthly temporary income. The income is for financing both job search budgets and living expenditure. It is to be noted that the introduction of these support schemes are seen as key steps in reinforcing the social safety net in the Kingdom. It is also partly focused at offering some amount of

income security to those working in the private sector, where a greater risk of job loss prevails than in the public sector. Under both the programs, financial assistance is incumbent on participation in training and active job search efforts. Policies are focusing on education sector reforms and vocational training. As part of

As part of comprehensive and sustainable development with respect to Vision 2030 and NTP, major education sector reforms are being planned, including curriculum reform measures, early childhood education and training for teachers. Strengthening the ecosystem for vocational training is also a key plank of the reforms in order to better align the skills of Saudis with those in demand from private sector companies.

Relevant Saudi authorities are also implementing several plans to grow female labor force participation. To roll back some of the impediments to women entering the Saudi workforce, the Saudi authorities are subsidizing transportation expenses and childcare costs. Measures, like increasing the availability of childcare facilities and encouraging expanded use of teleworking, are in place. With Saudi women now permitted to drive, this should ease transportation constraints as well. Also, since February 2018, women no longer require the consent of a male guardian to commence business and can have access to specific jobs in the Saudi military.

It is of little doubt that the “Vision 2030” initiative and the NTP has generated momentum for the preparation of Saudis, particularly the youth, to take an active part in the growth and development of the Saudi economy5. This, in conjunction with increased government expenditures for rehabilitation of the national labor to ready an internationally competitive and productive labor force, will yield sustainable results over the long term.

5 Comprehensive Growth Strategy — Kingdom of Saudi Arabia (G20, 2014)

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Emerging sectors that are likely to benefit from Saudi Arabia’s diversification drive

Saudi Arabia is in the midst of an evolutionary phase, witnessing a series of reforms that would help them reduce their reliance on the Oil and Gas industry. Being the largest exporter of oil in the world, it comes as no surprise that Saudi Arabia’s economy is built around the Oil and Gas sector. However, the problem has always been the extent to which the economy was reliant on the commodity. In the decade leading up to the oil price crash, nearly 90% of Saudi Arabia’s revenues on an average were derived from Oil and Gas. The fall in oil prices during 2014 acted as a trigger to fast-track reforms that were focused on fiscal prudence and diversification of the economy. Saudi Vision 2030, a long-term socio-economic plan was launched in April 2016 to address this specific problem. The initiatives that were set in motion as part of this strategy provided the impetus for several sectors that were earlier left in the periphery. From a strategic perspective, the development of these sectors would help the country tackle two longstanding issues it has been facing. One of which is reducing the reliance on the Oil and Gas industry while the other being unemployment among nationals.

Transportation and Logistics – boosted by infrastructure spending

One of the key components that support industrial development is the establishment of a robust logistics system. The presence of a reliable transport infrastructure that includes roadways, rail routes, seaports and airports is necessary for industries to move raw materials and finished goods across locations seamlessly. As Saudi Arabia has been looking to develop their non-oil industries, one sector that would benefit from the windfall would be the transportation sector. The increase in capital expenditure projected in the budgets released by Saudi Arabia for 2018 and 2019 is a positive sign

that shows infrastructure development is a top priority for the government. The country also aims to attract investments close to USD 19 billion in the transport sector through privatization of publicly operated facilities and public-private partnerships. Despite having 26 airports, the cargo contribution is largely limited to seaports, roads, and railways. The seaport network is one of the biggest in the region, operating 10 major ports that are operated by private sector companies. Several projects pertaining to the development of new logistical channels and modernizing the existing infrastructure are already underway in the country. With a healthy amount of funds earmarked for future projects, the outlook for the sector is positive, providing direct and indirect benefits in the form of new jobs and assisting the development of other industries.

Mining sector – a lot of untapped potential

The mining sector is another one that could play a crucial part in Saudi Arabia’s diversification drive. Saudi Arabia is a resource-rich region that is home to a wide range of minerals. The country’s mineral wealth is estimated to be close to USD 1.3 trillion, with sizeable deposits of Gold, Copper, Bauxite, and Phosphates. The sector has largely been untapped due to the country’s focus on oil and oil-related products. Now with diversification reforms in full swing, the sector could prove to be a good source for revenue diversification and employment. The mining sector in Saudi Arabia currently employs only 177,166 individuals. However, it is one of the few sectors where the number of nationals employed exceeds expats. Going forward, the rise in commodity prices, government initiatives to incentivize private sector investments, construction of railroad projects that would link mining locations to logistic hubs are all expected to aid growth in this sector. The Ministry of Energy, Industry and Mineral Resources expects the contribution of the mining sector to the country’s GDP to increase from USD 17 billion to USD 64 billion in 2030, creating 25,000 new jobs in the process.


Source: General Authority for Statistics, Saudi Arabia

Source: General Authority for Statistics, Saudi Arabia

Saudi Arabia - Employment by economic activity

Population of Saudi nationals by age group (in millions)

Economic activity Total Employees Saudi nationals Expats

Construction 3,446,079 12% 88%

Trade 2,253,989 20% 80%

Financial, insurance, real estate and business services 896,732 24% 76%

Manufacturing 893,909 22% 78%

Other collective and social services 885,065 46% 54%

Post and Telecommunications 343,433 26% 74%

Mining and quarrying 177,166 60% 40%

Electricity, gas and Water 102,290 48% 52%

Agriculture and fishing 93,589 17% 83%

Other activities 1,481 100% 0%

Sports and Entertainment – supported by youthful demographics

One of the key changes stemming out of Saudi Vision 2030 was the change in the country’s social stance. Lifting the ban on women driving and movies, not only reflect a change in lifestyle but also opens up a sector that has remained dormant for a while. Considering the demographic skew of nationals that is inclined towards the younger end of the spectrum, the willingness of the government to initiate further progressive reforms and the impending investments, the entertainment sector has the potential to be a fruitful one for Saudi Arabia in the years ahead. According to a report from CBRE, the entertainment sector is expected to create 300,000 new jobs by 2020. Relaxation of laws, reducing the barriers to obtaining visas and private sector investments are expected to be the growth drivers for the sector. Tourism is expected to be handed over with a significant boost, as the inflow of tourists is expected

to rise to 26 million a year by 2023. With major projects like Qiddiya, Al-Ula, Neom and the Red Sea Project in progress, the entertainment sector is expected to develop into a key revenue generator in the years ahead.

0.0 1.0 2.0 3.0 4.0 5.0

80+

70-79

60-69

50-59

40-49

30-39

20-29

10-19

0-9

75% of totalpopulation

12

The sports tourism industry, which is valued at USD 600 billion worldwide, is another with immense potential and strategically aligns with the country’s objectives. Sports accounted for 25% of all tourism receipts globally, with 76% of trips being planned around a sporting event. The industry is not something new to the region, as GCC countries have already secured rights to host some of the flagship events in the sporting industry. Saudi Arabia has taken several strides in this regard by attracting several global events and developing sports at a grassroots level. The recently concluded football world cup is a testimony to that fact, as the national football team outshined several Asian teams in the qualifying stage and put forth some commendable performances in the final stage. Despite the delay in opening itself up to the global sports and entertainment landscape, Saudi Arabia’s approach has been quite different compared to its neighbors. Apart from Golf and Football events, which are also being pursued by other GCC countries, Saudi Arabia has tried to differentiate itself by focusing on sports like Boxing and WWE. If Saudi Arabia’s plans to develop sports and entertainment succeed, it could place the country as one of the preferred tourists destinations for sports lovers, creating several jobs and contributing to the economy.

The rebound in oil prices have provided leeway for Saudi Arabia to pursue capital expenditure to develop non-oil industries. With unemployment among nationals starting to become a cause for concern in the near-term, and revenue diversification being a long-term objective for the country, sectors such as transport, mining, sports, and entertainment are expected to emerge in the years to come.


The Saudi economy has undergone many challenges in the recent period, due to external and internal factors, the reflection of geopolitical factors or results and the reflection of the application of some economic tools.

Nevertheless, the Saudi economy has faced these challenges with all strength, overcoming them, and this is evidenced by the strength of the private sector and the strength of GDP.

The private sector in Saudi Arabia faced many new laws and negative factors which in turn affect, but by virtue of the hardness of the private sector and it is built on a solid structure that faced the crisis and took alternative decisions and reflected the negative factors to positive.

Here will present the most

important factors that helped the Saudi economy to reach this position and overcome the challenges, which will also help the economy to achieve growth in future, in the following points:

Budget of the Kingdom: The Kingdom has announced a huge budget which in turn will support all sectors, government spending is the tap that irrigates all sectors, and the GDP is harvested in the spring.

Government coalition with the private sector: The government should not forget its main partner, the private sector. This is what has already been done in Saudi Arabia, where huge private partnerships have been activated by the Public Investment Fund to boost the local economy, production and industry. Besides providing facilities to the private sector to carry out its work effectively and to create jobs there.

The presence of demand in the market: As is the natural economic situation, there is a demand to face the

supply, in Saudi Arabia there is a large demand, because of the purchasing power and quality of population composition, the existence of the production force in the industry.

The existence of a real and strategic plan for the government: Saudi Arabia has drawn up a new strategy which includes a clear and explicit vision based on the provision of non-oil sources of income to the Kingdom, which in turn strengthens the economy and the GDP, which leads to positive results in the budget and the positive impact on the trade balance.

Establishing a new market and sectors: Saudi Arabia has the new industrial orientation for the establishment of the transformation industry after the consolidation of efficiency in the manufacture and production of raw materials. There are also new industries and sectors, such as the entertainment and domestic tourism sector and the establishment of the Smart Industry Zone in Neom. All this

will boost the economy and create new jobs and opportunities in the market.

Companies turn to IPO in the stock market: A large part of Saudi economy and the GDP comes from the companies in the private sector , and the Saudi Government has directed to organize these companies to implement the corporate governance to ensure its continuity and effectiveness of production. Therefore, the companies have turned to a initial public offering (IPO) in the stock market. The Saudi stock market is strong and attractive to foreign investors and is attracted to foreign capital.

It is clear that there are challenges to the economy, but the Saudi government, in partnership with the private sector, has faced these challenges and has won them well. We strongly trust our kingdom, the strength of our economy, and the strength of the Saudi people. As it is said, cultivate in time of crisis to harvest before others in the spring.

CHALLENGES OF THE SAUDI ECONOMY

Abdulaziz Alshaikh

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CLIENT SPOTLIGHT

1. Could you please provide a brief introduction about your organization, and its purpose?

Established in the year 2008, Tarweej is a business unit of Mohamed Yousuf Naghi Group. In-store execution, assets management, market intelligence and brand activation are the core activities of the company. Tarweej has about 10 years of experience in partnering with leading multinational and local FMCG brands. It is the leading service provider in the Kingdom, with more than 1,500 employees, offering value-added and efficient in-store solutions.

2. You’ve been in the HR profession for close to two decades now. What intrigues you most about it?

In my two decades of experience, I have been involved in many aspects of the HR functions - like identifying a prospective candidate for recruitment, enabling onboarding process, ensuring proper training and development programs, assessing employees’ performance, resolving conflicts, maintaining work culture and proposing rewards and incentives schemes, and alike. On a general lookout, each of these activities may seem like separate functions

Company Name: Tarweej - Mohamed Yousuf Naghi Group

Interviewee Name: Mr. Waleed Sultan

Interviewee Title: HR Business Partner

Interview Details

QUESTIONS & ANSWERS


within HR profession, but when put together it has the ability to make a large difference for both organization and employees. To me, the most interesting aspect about HR profession is the ability to help people in achieving their professional targets and aspiration by ensuring they have all the required support, which effectively means that as HR professionals we play a critical role of being ‘enablers’.

3. You’ve worked on various areas of HR, from training, compensation to performance management. Which one have you enjoyed the most?

Every function within the HR domain has its own challenges and are susceptible to changes like compliance with law and regulation, change management, leadership development, adopting to innovation, to name a few. Though I enjoyed working on almost all of these functions, recruitment process is something that I enjoyed the most as a HR professional. This is where I got an opportunity to work as an enabler for the wider interest of the organization to hire the best of the talents and at the same time to ensure that these talented resources find their dream job. It is crucial to align organizational requirements with candidates’ aspirations, as it often leads to long-term engagement and commitment.

4. Tasked with driving the people and organisation development agenda for Tarweej and Mohamed Yousuf Naghi & Brothers Group, what does your typical work day look like?

My day starts quite early in the morning, wherein I check all my emails to ensure that nothing is pending at my end. In office, as a practice I conduct daily meetings with the team to keep a track and to devise action plans for all issues at hand. I also ensure that the HR department is functioning with ease and also keep a regular check on activities to gauge if my intervention is required. My day at office also involves liaison with different departments like operations, finance and other teams to discuss about current and future projects. In short, it’s all about coordinating

between different moving parts and ensuring that we are making progress towards the larger organizational goal. to innovation, to name a few. Though I enjoyed working on almost all of these functions, recruitment process is something that I enjoyed the most as a HR professional. This is where I got an opportunity to work as an enabler for the wider interest of the organization to hire the best of the talents and at the same time to ensure that these talented resources find their dream job. It is crucial to align organizational requirements with candidates’ aspirations, as it often leads to long-term engagement and commitment.

5. What challenges do you typically face while recruiting candidates?

The first and foremost issue that we face is the short-sightedness that we see in some of the candidates. I feel candidates, while evaluating a job offer, are weighing monetary compensation above the work profile, and are willing to reject an offer for even a slightly better compensation from other companies. This approach maybe good in the short term, but one needs to evaluate long term prospects with an organization before accepting or rejecting an offer. I believe a candidate should focus on growth prospects before taking a decision. The other prominent issue that we face is with regards to difficulty in finding candidates with high caliber for certain positions. These positions require candidates to take initiatives, complete ownership of the tasks and drive the business by setting examples for other colleagues to follow. We also face difficulties in getting visa for foreign candidates due to strict government policies.

6. Could you explain how Maharah has helped you to overcome them?

Our engagement with Maharah has been quite fruitful. Maharah as an institution thoroughly understands our requirements and provides solutions in quick time. It has been instrumental in providing quality candidates. Maharah also takes care of visa requirements for these candidates, taking the burden away from us.

Overall, Maharah has been providing prompt quality services which helps us to run our operations smoothly and also helps us to quickly adapt to client requirements.

7. What do you feel is unique about Maharah as a service?

Prompt service and high level of cooperation make Maharah stand out when compared to other service providers. Maharah is also intuitive in their approach which is commendable.

8. What are the various HR challenges for a large and diverse market like Saudi Arabia?

The biggest challenge for a HR is to get right talent to do a job. In general, there are wide mismatch in the available skillsets and the job requirements, which

renders a great challenge for HR professionals in hiring the ideal candidate. Other issue we face is high Saudisation requirements for certain jobs.

8. A lot of people from Asian countries are vying for jobs in Saudi Arabia. Any words of advice for them?

I would suggest these people to work only for companies with good reputation. A proper check on the background of the company, ex-employees or employees reviews and consulting embassies or registered employment agencies could help in understanding about a company’s reputation. Also, it is advisable to review the contracts thoroughly and understand all the nuances of the contract before signing it. These measures could help to take the decision of coming to KSA.


MAHARAH’S LATEST NEWSeBranch

Maharah’s in-house user friendly mobile application enables access to a host of services as often required by homes or offices. It is quite easy to navigate and to place a service request.

Maharah provides door step delivery of services for home customers, just on a click.

Key App features:

• User interface in English and Arabic

• Easy registration process; Customer can manage profile and required documents

• Hourly and monthly based subscriptions

• Simple and streamlined service request process

• Access to labors profiles for ease of selection (monthly service)

• Track contracts’ history and status

• Renew contracts

• Display of currently available offers

• Delivery of the service at the user’s location

• Provide Iqama transfer service to the customer

• Support for Mada and Credit Card payments

• Service evaluation by periodical reviews and feedback of contracts

The Company regularly updates the application to include new service offerings and to enhance its features.

Advantages of E-Branch:

• 24/7 account access through mobile

• Wide user reach

• Allows for frequent improvements based on users’ feedback

• Reduces pressure off the branches

• Targeted marketing based on users track record


MAHARAH BOOTH AT AL-JANADIRYAH

The Al-Janadriyah National Heritage is one of the biggest annual festival in the kingdom of Saudi Arabia. Located in the north-east of the capital city, Riyadh. People across the world visit the festival with their families to learn about culture of the kingdom. In 2018, more than six million people from around the world visited the festival. There are different sections in Al-Janadriyah village of many Saudi provinces like, Riyadh, Eastern Province, Mecca, Asir, and Al-Qassim. Moreover, each year the Al-Janadriyah National Heritage invites visiting countries, in 2018 the visiting countries were United Arab Emirates, Indonesia, Bahrain, Oman, and others.

Maharah Human Resources Company participated in the Al-Janadriyah National Heritage and Cultural Festival to introduce the company, establish communication with the visitors, and provide services to existing and new clients. Maharah also explained its role in the Human Resource Industry and unveiled its plans to become the leading company in this industry. Moreover, it also provided general overview of the new services, promotions, special events for children, and daily awards through draw for participants.

Mr. Yousif Alghafari , Chief Executive Officer and Mr. Abdulaziz Alkathiry, Vice President visited Maharah booth and honored the participating employees who have made an outstanding effort in the services provided and satisfactions of customers.

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MORE PICTURES


MAHARAH SOCIAL EVENT

Daddy / Mommy at Work

On 31st January, Maharah Human Resources launched “Daddy / Mommy at Work“ initiative. The main objective of the initiative was to introduce employees’ kids to the workplace and allow them to learn, explore, and see how their parents work at Maharah. The kids also got an opportunity to know about their parents’ roles and responsibilities and also got a chance to interact with their colleagues. Children participated in challenging events and won presents. Also, the company coordinated with professional clown and cartoon characters to play with children to make them happy. The children enjoyed their time and had fun, they also appreciated their parents and Maharah for the great effort. Furthermore, Maharah employees also expressed their gratitude towards the company for taking such an initiative and also praised Maharah for taking such good care of its employees. The event was mesmerized by the presence of Senior Management in the event, who gave presents to the kids, encouraged and supported them throughout the event.

At the end, Mr. Yousif Alghafari, CEO, Mr. Abdulaziz Alkathiry, VP and Mr. Abdulaziz Alsheikh, VP honored Employee Care Officer and his crew in the Human Resources Department for the great effort they took for the success of the initiative.


Saudi HR behemoth Maharah acquires a strategic stake in artificial intelligence recruitment platform BLOOVO to fuel its expansion and build-on its technology

BLOOVO, a fast-growing regional online recruitment

platform which uses intelligent algorithms, today

announced that the Saudi-based Maharah Human

Resources Company has acquired a strategic

stake in it, which is expected to help in regional

and international expansion as well as techology

development. This blockbuster acquisition creates a

regional HR giant that would challenge international

HR players operating in the MENA region and will also

pave the way for international expansion for the two

players.

Yousef Alghafari, Maharah’s Chief Executive officer

commented on this acquisition saying: “Being one

the largest Human Resources company in the entire

MENA region, this acquisition marks the beginning

of a new era for Maharah in terms of penetrating the

fast-paced HR Tech industry, and online recruitment

constitutes a natural extension to Maharah’s offering

and strategic direction which support achieving

different future initiatives that the company is

pursuing including nationalization; and BLOOVO with

its innovative online offerings fits very well with our

overall strategy”.

Alghafari also added that this acquisition supports

in achieving the company’s strategic objectives.

Maharah has been actively looking for business

opportunities that serves its strategies. Both the

companies will work on business plans in order

to enhance BLOOVO’s online platform in the Gulf

region and would also implement initiatives that are

aligned with Maharah’s strategy to develop a strong

database of professionals and support the company’s

recruitment process.

Ahmad Khamis, the Co-founder and CEO of BLOOVO

commented on this partnership by saying: “We are

pleased to have Maharah as a strategic and value-

adding partner in BLOOVO, and we are confident that

Maharah will contribute significantly to BLOOVO’s

development and will help accelerate its growth

across the GCC region over the next two years with

a focus on Saudi Arabia, after which international

expansion becomes the objective”.

Ammar Al Khushashi, the Co-founder and Managing

Partner of Noble Partners, which is a niche regional

private equity manager, commented on the

transaction: “The MENA region remains an attractive

investment destination given its solid economic

fundmentals, in addition to the commitment of GCC

governments to invest in technology in order to boost

its ecomomies, diversify its revenue streams away

from oil, and attract talent to the region. Being one

of the early shareholders and supporters to BLOOVO,

Noble Partners has also advised both parties on

the transaction, where synergies would be created

between both Maharah and BLOOVO to build a full-

fledged HR powerhouse in the MENA region.

BLOOVO AQUISION

We are confident that this strategic partnership with

Maharah will accelerate the growth of BLOOVO to

become a vital player in the regional HR market,

positioning it at the forefront of HR technology.

We remain committed to the growth of BLOOVO

internationally and further to take it public on one of

the international markets in line with its vision”.

BLOOVO, which uses AI and machine learning in the

recruitment process, has grown rapidly over the past

3 years with bigger plans to solidify its market

presence, strengthen its team and grab a larger

market share in the recruitment industry. BLOOVO is

continuously gaining momentum, rapidly growing its

employers’ base to over 2,000 employers from UAE,

Saudi Arabia and Kuwait. BLOOVO has won several

accolades as one of the most promising startups in

the Arab World and Middle East in 2017 and 2018 by

Forbes, and was also named as the best startup in

the UAE for 2017 by FinanceME.

BLOOVO, which has already acquired a big market

share in UAE and Kuwait, plans to aggressively

expand in Saudi Arabia through this partnership, and

set up offices all over the MENA region as well as in

selective strategic international markets creating the

first Arab-born international recruitment platform.

Furthermore, BLOOVO is in the process of setting up

its dedicated technology lab, which will fast-track its

technology innovation and development to continue

differentiating itself from the rest.


REFORMS AGENDALabour Market Regulations Update

Labour markets experienced most of the regulatory changes in the majority of the GCC countries, in line with their mega programs relating to the localization of jobs, decreasing dependence on expat labour and aims to provide a constructive and friendly work environment for the current migrant workers.

Saudi Arabia Job reservation for the nationals to reduce unemployment

The Minister of Labor and Social Development, Dr. Ali bin Nasser al-Ghafis, issued a directive which shall affect employing foreigners from 12 retail sub-sectors. Following the directive, roles in over 43 retail activities such as selling watches, perfumes, electronics, automobiles, furniture, and garments stand to be impacted. As per the guidance paper released by the MLSD, Saudization quota for the sub-sectors is set at 70 percent. The implementation of the same is expected to be done in various phases over the years.

Expat fees to reduce reliance on foreign workers

The ‘expat fees’ payable by the companies is set to remove the cost advantages of hiring an expat over the national. An annual fee of SAR

26

6,000 needs to be paid for every expat employee and SAR 7,200 is applicable if the expat employees exceed the number of Saudi employees. The charges are set to rise in the year 2020 to SAR 8,400 and SAR 9,600, respectively.

Recently in February 2019, King Salman approved a plan that allocated SAR 11.5billion to ease the levies incurred by businesses. According to the Saudi Press Agency (SPA), the amount would be utilised to reimburse payments that some companies have already made and exempt others who are yet to make the payment. However, to qualify for it, business should have made progress in hiring Saudi nationals.

Women in the workforce

To encourage women participation in the workforce, the Saudi government has reserved certain jobs only for women. Shops/sections selling women’s products must be staffed only with women. The removal of driving ban in June 2018, which was perceived to be hindering their movement/access to workplaces has opened up work opportunities. As a result, from September 2018, the above said jobs are reserved for Saudi Woman.

Workplace safety & workers health

Regulations were promulgated to provide a safe working environment for the workers. The new regulations introduced in July 2018 is applicable for all firms with over 50 or more employees. Under this, based on the operating environment, the workplace is categorized into three different risk segments namely, high, medium and low-risk environments. The regulation also charts out minimum requirements that need to be met by all the firms.

Launch of New Labour Courts

In November 2018, labour courts that have the jurisdiction over all the cases related to the labour law have been launched across major cities. Subsequently Amicable Resolution Department was established in all labour office to mediate on labour disputes. Mediation is imperative for all conflicts and only if it’s unsuccessful would it be referred to a labour court.

United Arab Emirates Good Conduct Certificate Suspended

In a bid to create a more secure environment for the community, the Coordination committee in January had stipulated the requirement of Good Conduct and Behavior Certificate a key condition to get work Visa in UAE. However later in April 2018, the requirement was suspended indefinitely.

Guidelines for Expats Launched

The General Directorate for Residency and Foreigner Affairs (GDRFA) in February 2018, announced the launch of expat guidelines. The move is stated to improve the state of affairs for expat workers in the country. The guidelines aim to empower workers with their rights, duties and with the law.

New guidelines are expected to teach about personal safety at worksites and the importance of using protective equipment such as safety helmets, ear protection, goggles, safety boots, dust masks, hi-visibility jackets and other equipment.


New Human Resource Law Announced

The UAE in July 2018, announced a new human resource Law of the Government of Dubai. The law aims to further enhance the government’s performance, encouraging creativity and innovation as well as attracting the right talents that can help further cement Dubai’s profile as a model for innovation and excellence.

The objective is to create and ensure work life balance and stability for all government employees regardless of their positions. The new HR Law is in line with the futuristic vision of the Government of Dubai as the government wants to enhance teamwork, knowledge exchange and bolster efforts for pushing Dubai’s development march forward.

10 Year Visa Launched

The UAE cabinet in May 2018 adopted an ambitious plan to further bolster its prime position as the primary destination for international investment and talent by launching a new VISA policy which grants a 10 year stay in the country to professional and investors. The new decision will also review the current residency system to extend the residence time for the dependent students after completing their university studies. This will give them the opportunity to study their practical options in the future.

Kuwait Foreign Workers to be sacked

The Interior Ministry in January 2018 announced that soon expatriate workers in the ministry will be sacked in accordance with the replacement policy adopted by the cabinet. These expatriates will be given a three-month notice according to the applicable laws and bylaws. The source disclosed those affected by the decision include expatriate auditors and legal workers.

Kuwaitization of Jobs Kicks in

The process of Kuwaitization gathered pace since January 2018 as the Ministry of Finance has begun to work on executing the plans to kuwaitize government jobs and started sending letters to ministries and other government agencies in coordination with Civil Service Commission.

The letter sent by Ministry directs department to prepare a list of the number of expat employees who will be terminated for the fiscal year April 2018- March 2019. This shows the decision commits government bodies to reduce the number of expat employees annually in order to reach the designated percentage by 2022 for each category of jobs as per the Kuwaitization plan that was launched by the government in Sept 2017. The document asks each entity to reduce the number of expats and adhere to the set percentage in the Kuwaitization plan. The demand by the finance ministry to send the lists urgently is within the framework of preparing an estimated budget of government bodies’ expenses, as the finance ministry is trying to put a limit on expenses on them. It said no additional allocations should be sought during the fiscal year, except in highly urgent cases.

28

As per the plan expat are expected to be terminated from the following jobs/occupations

• Information technology

• Marine

• Arts, information, letters and public relations

• Development, administrative follow up and statistics

• Administrative support

Oman Omanisation Policy Kicks In

Omanisation policy implementation started gaining momentum since January 2018, as the government began throttling back in expatriate hiring. Most of the companies have been given Omanisation targets to meet and provide massive training programs. According to a recent study currently expats constitute 44.5% of the total population in Oman and by 2040, Oman aims to bring it down to 10%.

The study was conducted by National Centre for Statistics and Information (NCSI) in population scenario and their report expects the decline in expatriate population over until 2040, in accordance with Omanisation policy.

Six Months Visa Ban Imposed

In line with its policy of Omanisation and its sub-domains relating to visa issuance and regulation, the Ministry of Manpower in February 2018 banned 87 occupations from recruiting non-Omani citizens. The decision was taken to study the labour market status and to assess and review the decision every six months. With this decision, experts believe the expat population will continue to fall. Omanis are expected to fill these jobs and they should be able to fill most of these positions, as several educated Omanis were unable to find jobs. The government has pledged 25,000 jobs to Omanis by the first half of this year and private sector companies have already created several of these jobs.

Manpower Ministry Set Omanisation Target

The Ministry of Manpower in April 2018 issued a formal target for Omanisation of Insurance sector in the country. According to the decree, Omanisation must reach 70% in the insurance sector by the end of this year. The below table displays expected percentage of Omanisation in insurance sector in relation with management hierarchy for the next three years.

Bahrain Hike in Minimum Salary for Sponsoring Dependents

The minimum salary for expatriates who wish to sponsor dependents has been raised from the current level of BHD 200 to BHD 400, in January 2018.

Mandatory Health Insurance

Health insurance has been made mandatory for all from January, 2019. Employers need to pay insurance for foreign workers and are prohibited to hire without providing adequate coverage. Employees under probation and temporary workers are also required to have compulsory health cover.

Source: Times of Oman-2018

Omanisation Targets by Management Level

Insurance Sector 2018 2019 2020

Higher Management 40% 45% 50%

Middle Management 65% 75% 75%

Specialized Professionals 90% 90% 90%

Total 70% 75% 75%


NOTEWORTHY QUOTES

The Ministry of Civil Service will spare no effort in carrying out the roles entrusted to it to advance administrative development, including the modernization of the working environment in the public sector. Minister of Civil Service Suleiman bin Abdullahhttp://www.arabnews.com/node/1438991/ saudi-arabia

“

Our primary conviction is that the role of human capital is paramount and that everyone has the opportunity to improve and develop professionally. Our company has a workforce constituting different nationalities and sharing their opinions and experiences are an important part of our development. Sultan Batterjee, CEO of IHCChttp://www.arabnews.com/node/1447741/corporate-news

One of the most fundamental ways that we can preserve excellence in each layer of the company is by ensuring that our human capital is encouraged and rewarded and that our work environment is well maintained. Eng. Sami Al Safran, CEO of MEPCOhttp://saudigazette.com.sa/article/530422/BUSINESS/MEPCO-wins-Great-Place-to-Work-2017-accolade-in-KSA

To a layman, the relationship between education and economic growth is relatively straightforward. An educated population is a productive workforce, and higher productivity equals higher economic gains. Therefore, a country should invest in education to develop its “human capital” — the ability of a population to perform labor to produce economic value. Basil M.K. Al-Ghalayini, Chairman and CEO of BMG Financial Grouphttp://www.arabnews.com/node/1391181

“

http://www.arabnews.com/node/1438991/saudi-arabia

http://www.arabnews.com/node/1438991/saudi-arabia

http://www.arabnews.com/node/1447741/corporate-news

http://saudigazette.com.sa/article/530422/BUSINESS/MEPCO-wins-Great-Place-to-Work-2017-accolade-in-KSA

http://www.arabnews.com/node/1391181

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SKILLS TO KILLFood & Beverage Industry - Chef

In the Food & Beverages industry, the role

of Chef assumes paramount significance as

their performance could sway the fortunes

of the enterprise. Simply put, the role and

responsibility of a chef revolves around

cooking meals for the hotel/restaurant.

Depending upon the experience and

consequently the hierarchy within the firm,

administrative and managerial function would

also form part of his/her job responsibilities.

Responsibilities of Chef

The primary responsibility of a Chef is to

ensure that the food/dish is prepared as

per the customer order and sent out from

the kitchen while adhering to the quality

standards and norms established by the

hotel/restaurant. To carry out the operation

successfully, the Chef should maintain

inventory of food items as per the available

menu, dish out days special and also possess

the ability to fine tune the dish as per

customer’s specific needs.

The work schedule is packed, operating

environment is often physically challenging

and they need to endure working for long

hours as a Chef. Ability to conceive and

prepare new recipes is also a prerequisite.

Knowledge of multiple kitchen gadgets and

ability to stay on top of key food trends is

essential to succeed.

Typically, one starts his career as a ‘Sous

Chef’. Sous chef is involved in carrying out

repetitive tasks listed out by the head chef. Once they

gain experience, they might be considered for additional

responsibilities. ‘Line Chef’ is in charge of specialized

roles such as preparation of ingredients, sauces, baking,

or ensuring the main courses are made to perfection. Line

chef reports to the ‘Head or Executive Chef’. Head Chef is

responsible for the creation of menu or in establishing the

theme for a particular restaurant. The complete responsibility

of the culinary operations is bestowed upon the head chef. It

is imperative that the head chef is good at multi-tasking.

Desired Skills of a Chef

A good chef needs to have a keen sense of taste and smell.

Good food presentation skills are always appreciated. As one

progresses in their career as a chef, the ability to fuse and

experiment with flavours would help them to advance further.

Thus, a knack for flavours and the urge to experiment and

innovate dishes is required to have a long, successful career

in this field.

31

In the initial stage of career, one should be prepared

to endure working long hours. Ability to organize

and multi-task could be crucial is establishing ones

credential at the early stages of career.

Courses to Pursue

Vocational training institute offer Diploma courses

in catering. Well-structured graduate programs are

also available and provided by various universities.

The programs offer internship facilities and industrial

training as part of curriculum. Some of the leading

colleges in the Gulf region that offer courses include:

• The Emirates Academy of Hospitality Management

• Rolla Academy

• Amity University

Apart from these, professional certifications could

also be obtained through short-term programs

(6-weeks/8-weeks/3-months) from leading institutes.

Salaries

Salaries for Chef varies according to the experience

and specific skill sets of the Chef. A seasoned

professional with global experience could earn

anywhere between

USD xxxxxx to USD xxxx, while a fresher or graduate

just

out of college would stand to earn USD xxxxxx.

Employment Opportunities

Opportunities abound for Chefs in the region. A

thriving Food and Beverage industry that is in a

constant state of flux offers multitude of options that

range from opportunities in star cruises, star hotels,

premium dining spaces, fast food outlets and other

eateries. Chefs are also hired on private basis by the

wealthy families to serve their food needs.

32

JOBS IN DEMAND

General Nurse: General Nurse provides care to patients in hospitals or outpatient facilities by administering medication, managing intravenous lines, and monitoring their health. Key responsibilities include handling drugs and consumables, identifying health problems and alleviating them based upon standard protocols, and provide basic life support in case of emergencies. General Nurses are required to possess a Bachelor of Science in nursing and they generally require a registered nurse’s license.

Specialist Nurse: Clinical nurse specialist has five major responsibilities namely clinical practice, research, teaching, consulting, and management. The nurse is required to optimize patient care by working with other nursing staff by evaluating current practices, reviewing alternatives, consultations with patient care managers and providing education to staff. Responsibilities also include educating patients and families on how to best manage their conditions, to incorporate practices to promote staff teamwork and to analyze patient data.

Cook, general: General cooks are tasked to set up workstations with all needed ingredients and cooking equipment. They also prepare ingredients to use in cooking (chopping and peeling vegetables, cutting meat etc.) They cook food in various utensils or grillers. Key skills required for the job includes knife skills, tasting skills, multitasking, cleanliness, and attention to details.

Waiters (food server): Waiters take orders and serve food and beverages to guests at tables in dining establishment. Duties include familiarizing guests with menu and daily specials, accurately recording food and drink orders, running multi-course meals, and tallying bills. They are also responsible to check with customers to ensure that they are enjoying their meals and act to correct any problems. They regularly communicate with customers to resolve complaints or ensure satisfaction. Basic skills required for the waiter job requires verbal communication, basic math, resolve conflict, teamwork, and persistence.

Restaurant Worker: Restaurant worker is required to clean dishes, kitchen, food preparation equipment, or utensils. They are also required to wash dishes, glassware, flatware, pots, or pans, using dishwashers or by hand. Maintain kitchen work areas, equipment, or utensils in clean and orderly condition. No specific academic requirements.

Computer Programmer: Computer programmer is required to figure out the process of designing, writing, testing, debugging/troubleshooting and maintaining the source code of computer programs. The job includes writing programs in different computer language like C++ and Java, update and expand existing programs, debug programs by testing and fixing errors, and automation. Key required skills include problem solving, perseverance, self-motivation and independence.

General systems analysts: Computer systems analysts aim to improve efficiency and effectiveness by studying an organization’s current computer systems, procedures and design information systems solutions. Key required skills include logical problem solving, interpersonal skills, quick learning, and knowledge of hardware, software and programming. Educational qualification required for the job includes Bachelor’s degree in Computer System Analysis/Computer science, and management information system


INDUSTRY IN FOCUSGCC Food & Beverages Industry: On a Firm Growth Path

Food & Beverages (“F&B”) industry in the GCC has been the most resilient amongst all, underpinned by long-term growth drivers such as growing population and rising disposable incomes. The industry remains undersupplied and offers substantial growth opportunities in the future. It is estimated to reach a market size of over USD34 billion by 2020 with Saudi Arabia and the UAE accounting for 85% of the market share.

Of late, there has been a steady transformation towards organized food and beverages industry in the region characterized by increasing presence of global brands and international food chains. Development of organized retail space including foodt courts and malls have further augmented the growth of the F&B industry in the GCC region.

The GCC region represents less than 1% of the global population; nevertheless, the region has built a strong foothold as one of the most promising markets for foodservice operators across the globe. Expatriates from both the developing and developed world work in the GCC region and they bring together the taste for cuisines from their countries. The higher number of expatriates has also expanded the local palette for tastes to a significant extent. High per capita income, young population and strong demand for dining out options make the GCC region attractive for foreign and regional food and beverage players. Events of global interests, such as Expo 2020 in Dubai, and the growth of tourist attractions will continue to keep global players in food and beverage industry active and keen on investing and expanding.

12.0

7.2

1.0 1.0 0.4 0.3

18.2

11.5

1.6 1.60.6 0.6

0

2

4

6

8

10

12

14

16

18

20

KSA UAE Kuwait Qatar Bahrain Oman

2015 2020f

Source: Times of Oman-2018

GCC F&B Market size (USD bn)

34

GCC F&B Landscape

Traditional retailers that usually operate as standalone stores account for the majority of the market share. They are present across residential areas, office spaces and mixed-zone areas providing easy and convenient access. Such neighbourhood stores stock imported and domestic products along with frozen items. In the past decade, the GCC region has seen the rise of supermarkets and hypermarkets that provide much wider consumer choices in terms of products and quality. Developments in retail real estate and development of malls have provided further impetus for the growth and development of hypermarkets. Food and beverage industry is entwined with entertainment in the GCC region. Fine dining and hopping from one food eatery to another along with friends and family is increasingly considered as a social experience.

Growth in food and beverage industry is set to be driven by confectionaries, snacks, frozen and processed foods as the consumer shopping patterns evolve due to technological advancements and widespread adoption of e-commerce, which could impact their lifestyle and food choices. Ease of preparation, convenience of shopping and a variety of options will sway consumer behaviour. The growth of Quick Service Restaurants (QSR) has been amplified to accommodate the needs of active professional lifestyles.

The food services in GCC can be broadly categorized into fine dining, casual dining, Quick Service Restaurants or fast food and cafes. Fine dining is not just about carefully crafted food on a plate; it’s about ambiance and five-star services. In the region, there is the added bonus of restaurant venues boasting gorgeous views of the city’s striking skyline and sparkling waterways. Casual-dining is slightly different from fine-dine restaurants as they offer a relaxed, casual ambiance with a lot of seating. They offer full table, and their menu is higher-priced than fast-food restaurants but much cheaper as compared to fine dining.

Quick Service Restaurants (QSR) offers low to medium priced food in addition to faster service time distinguishing them from traditional or fine dining restaurants.

GCC F&B Market size (USD bn)

Food ServiceSegments

Restaurants

Fine Dining Casual Dining Quick Service/Fast Food

Cafes & Bakery


Source: The balance, Marmore Research

Source: World Travel and Tourism Council (WTCC)

Restaurants Types and Key Features

Tourism spending within the country by residents and international visitors (USD bn)

Features QSR Casual Fine Café

Price Point Easy on the pocket Moderate Expensive Pocket-friendly

Menu Specialized/ Limited choices Extensive List Elaborate Menu Desserts/Beverages

focused

Chef Skills Creative/Less experienced Experienced Specialized/Highly

Trained Regular

Key Customer Type Youngsters Family-friendly Upscale/Affluent All

Market Competition Extremely Competitive Moderately competitive Differentiated/Low Moderately competitive

The presence of low-cost expatriate workforce provides an opportunity for players to expand their chains to new locations. Presently, the total outlets in GCC for food services are over 50,000+ (Marmore Research).

The investment initiatives to expand the tourism sector as part of achieving economic diversification by the GCC governments in the region has directly benefitted in the growth of the food & beverage industry.

Career Paths and Job Opportunities in the F&B Sector

There are plenty of opportunities in the F&B industry that encompasses broad spectrum of skillsets including nutrition, cooking, management and customer service. F&B industry being people-centric and service-oriented, offers a variety of roles even for those with limited educational attainment. With appropriate professional qualifications and experience, the career heights to which one may be able to reach is limitless. The demand for F&B professionals in the GCC region is growing at a steady pace due to the thriving economic activity and steady inflow of visitors to tourist hubs such as Dubai and Oman. Spending by tourists, both domestic and international visitors, is expected to increase by 6.8% in 2019 and reach a value of USD 87 billion. Tourism spending is expected to increase in the coming years and it augurs well for the F&B industry outlook

2.7 4.7 3.4

9.9

27.6

38.7

3.15.6 4.1

13.2

31.5

44.1

05

101520253035404550

Bahrain Kuwait Oman Qatar KSA UAE

2015 2016 2017 2018 2019e 2020f 2021f

36

F&B sector is labor intensive and a major employer in the service industry. However, the sector is characterised by intense competition and workers often switch jobs lured by prospects of higher pay, leading to high attrition. Among the various jobs in service sector, accommodation and food service activities is lucrative.

Amongst all other GCC countries, the UAE is considered the most promising market for F&B sector. In the UAE, approximately 6 to 7 percent of its labour force is employed in the hotels and restaurant activities. The number of new jobs created in F&B industry within the UAE in last five years (2014-2018) amount to over 50,000. Overall, jobs grew by an annualized rate of 3.4%. In the next three years (2019-2021), F&B could create approximately 30,000 new jobs in the UAE alone.

Most of the job positions are occupied by expatriates who account for the majority of labour force. In Saudi Arabia, expatriates account for 56% of the labour force; in the F&B sector the proportion of expatriates employed is even higher at 73%. The recent initiatives by various governments towards nationalization of jobs has constrained the sector.

Labour force employed in hotels & restaurants in the UAE

3,92,112 3,83,751

4,22,837 4,31,052

4,47,440

4,64,904 4,71,371

4,78,253

3,00,000

3,20,000

3,40,000

3,60,000

3,80,000

4,00,000

4,20,000

4,40,000

4,60,000

4,80,000

5,00,000

2014 2015 2016 2017 2018e 2019f 2020f 2021f

Source: ILO, UAE Statistics Centre and Marmore Research


At the entry level, there are various roles such as housekeeping, waiters, concierge service and clerks. Often these are staffed with fresher’s with minimum education requirement but good communication skills. Usually they are provided with boarding and lodging facilities and their wages vary according to experience. Those with specialized skills can seek employment as Chefs or as Bakers.

The role of a Chef would be to draw up the menu, prepare meals, oversee kitchen activities, maintain and manage the quality standards. The graduates from catering colleges are preferred and having a professional qualification helps in career progression. Working experience in starred hotels would be an added advantage. Multiple hierarchies exist - the lowest being a Sous Chef - and with experience one may move up as a Line Chef and later on as a Head Chef. Being a Baker would be different from being a Chef. Having a diploma from a baking or pastry institute would provide an advantage in establishing one’s credentials.

The industry also offers various job positions for those with a knack for management. Depending on the scope of activity, various managerial positions exist in the F&B industry including that of operations manager, service manager and business development roles.

Expatriates account for majority of the labour force, who are employed in low-skilled jobs

94% 93%

83% 80% 79%

56%

83%

65%

81%87% 88% 85%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Qatar UAE Kuwait Oman Bahrain KSA

Expatriates as share of total employment Expatriates in low-skilled jobs

Source: IMF, Wall Street Journal; Data as of latest available

38

Organizational Hierarchy in F&B

F&B Manager

RestaurantManager

KitchenManager

OperationsManager

Logistics Incharge

Purchase Manager

Food Runner

Waiter

Cashier

Line Chef

Dessert Chef

Sous Chef

Lead Chef

Source: Marmore Research

Requisite Skills

The skillset needs of those working in the F&B industry varies as their roles and responsibilities. However, on a broad note, having a presentable personality and cheerful attitude helps professionals in customer service segment. Good communication skills, ability to converse or familiarity with multiple languages such as Arabic, English, Spanish, Russian and Hindi would be beneficial. Team work, ability to work with people from multiple nationalities, multi-tasking and paying attention to detail are other traits which shall set up one’s candidacy apart from others.

Conclusion

Food and beverage industry will be a key focus sector to drive economic growth and generate employment for the GCC workforce. Youthful demographics and high disposable income will attract competition and could result in the influx of international F&B players. The growth of the food & beverage industry will have to face many pain points, therefore effectively managing the challenges will be the key to maintain the sector’s current growth trajectory. While the GCC region is blessed with a growing population, which will offer abundant opportunities, issues such as employee costs, quality and innovation will play major roles going forward.

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