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Will business conditions improve in Saudi?

October 11, 2016

Riyadh, Oct 11: In a recent poll, 50% of respondents in Saudi Arabia expect business conditions to improve in one year.

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A survey conducted by Bayt.com, the Middle East’s number one job site, and YouGov, a leading market research agency, showed that 40% of the respondents expect the country’s economy to improve in the next six months.

“Despite the negative feelings that have characterized the past few months, there are sparks of optimism among respondents that economic conditions in their countries will improve in the future,” said Suhail Al-Masri, VP of Employer Solutions, Bayt.com.

Overall, only 20% of respondents in the Kingdom of Saudi Arabia believe that their country’s economy has improved compared to 6 months earlier, while 26% claim that it has remained the same. 42% of the respondents believe their country’s economy has receded. When asked about future expectations, 40% of respondents were optimistic about the economy improving, and a lower number believed the opposite to be true (25%). Nevertheless, 21% of the respondents don’t expect any change in the economy.

In terms of business conditions, almost one in four KSA respondents (27%) believe that business conditions are presently good. Conversely, 31% believe that conditions are average, while 40% believe that they are bad.
Regarding expectations for business conditions in a year’s time, 50% of KSA respondents are optimistic, 19% expect the situation to remain unaltered, while 20% are not confident at all, stating that the business conditions have the potential to get worse.

When it comes to job availability, 34% state that there are few jobs available across few industries, while 27% of respondents believe there are few jobs available across various industries. About 16% of KSA respondents claim that there are plenty of jobs available but across a few industries only, while a minor 12% state that there are plenty of jobs available across a wide variety of industries.

When it comes to future availability of jobs, a general negative outlook prevails amongst KSA consumers, where 33% of the respondents believe there will be a decrease of jobs available in their country over the next six months, and 25% state that the availability won’t change. However, 28% are still positive about this, stating that job availability will increase.

Less than 1 in 5 respondents (19%) believe that their current financial position is better now than it was six months ago, while 35% believe that it has remained the same. On a positive note, almost 43% KSA respondents expect their financial situation to improve in the next six months, while 26% say that it will remain the same.

Considering the opinions on the future cost of living, the majority of respondents (65%) expect the cost of living to increase in the next six months. On the other hand, only 6% of them expect it to decrease. When asked about the situation of their current savings compared to last year’s, 16% of KSA respondents claim that their savings have increased, while a quarter (25%) claim that savings have remained the same. 55%, however, believe that their savings have decreased in the same period.

The survey further revealed that 38% of KSA respondents are planning to buy a vehicle for personal use in the next 12 months. Conversely, 51% are not planning on buying a vehicle at all. Of those who are planning on purchasing a vehicle, 45% are planning to buy a new vehicle, while 34% claim to be looking for a used car.

When it comes to investing in property in the next 12 months, more than a quarter of KSA respondents say that they are planning to purchase property (29%). 54% of respondents, however, are not. Of those who are planning on making a property investment, 56% will be looking to buy new property, while 15% will invest in pre-owned estate. Almost half of Saudi Arabia respondents are looking to purchase an apartment (35%), while around a quarter will buy a villa/townhouse/bungalow (31%). 35% will invest in commercial property.

In KSA, 23% of employed respondents feel that the number of employees in their companies has increased over the past six months, while 50% believe the opposite to be true. Over the course of the next six months, 25% of employed KSA respondents expect the number of employees in their organization to increase, while 26% expect this number to remain the same. Conversely, 40% say that the number of employees in their company will decrease.

With regards to satisfaction levels, 42% of employed KSA respondents are satisfied with their career growth opportunities, while 38% are dissatisfied. When it comes to compensation, almost a third of KSA respondents (34%) are satisfied, while almost half of them (43%) are dissatisfied with their current compensation levels. The majority of respondents (53%) are satisfied with the non-monetary benefits they receive, and 40% are satisfied with the level of job security in their current organization.

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Khaleej Times
June 7,2020

Dubai, Jun 7: Emirates airline on Sunday confirmed that it extended the period of reduced pay for its staff for another three months as airlines around the world struggle to preserve cash due to the grounding of fleets.

An e-mail has been sent across to Emirates employees about extending the wage cuts till September 30. In some cases, the salary will be reduced by 50 per cent.

Emirates had previously reduced basic wages by 25 to 50 per cent for three months from April, with junior employees exempted.

The Dubai-based world's largest international carrier employs around 60,000 people across its spectrum. While the parent Emirates Group employs over 100,000 workers.

On Thursday, Abu Dhabi-based Etihad Airways confirmed to Khaleej Times that it also extended salary cut of its employees till September 2020.

"Regretfully, Etihad has extended its salary reduction until September 2020, with 25 per cent reduction for junior staff and cabin crew, and 50 per cent for employees at manager level and above. Housing allowance and a number of benefits continue to be paid," the airline's spokesperson said in a statement last week.

In March, Etihad had announced temporary reduction of basic salaries for the month of April to all staff, including executives, between 25 to 50 per cent.

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News Network
May 31,2020

Dubai, May 31: As many as 84 beggars have been arrested in Dubai during the Eid Al Fitr holiday, the Dubai Police have said.

The arrests were carried out as part of their anti-begging campaign to prevent begging during the holy month of Ramadan.

Some illegal vendors, too, have been arrested in different areas of the emirate, the police added.

Colonel Ali Salem, Director of the Infiltrators Department at the Criminal Investigations Department of Dubai Police, said that the campaign aims to maintain the safety and security of the society, adding that the campaign was successful and helped reduce the number of beggars across the emirate.

He called on the public to report begging activities to the number 901 or the Dubai Police app.

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Arab News
March 9,2020

Dubai, Mar 9: The eyes of the world will be on the oil markets when the big trading hubs in Europe and North America open following the end of the deal between Saudi Arabia and Russia that has helped to sustain crude at relatively high levels for the past three years.

There were big falls on Friday when ministers from the Organization of the Petroleum Exporting Countries (OPEC) failed to get a deal with non-OPEC members — the so-called OPEC+ — to extend output agreements. Brent oil was down nearly 10 percent at $45.27 going into the western weekend.

Saudi Aramco took immediate action to cut prices after the OPEC+ collapse, offering big discounts for crude deliveries from next month, when the current output restrictions end.

According to a notification sent to customers by Saudi Aramco, seen by Arab News, the Kingdom’s oil giant will cut between $4 and $8 per barrel, with the biggest discounts being offered to buyers in northwest Europe and the US.

Roger Diwan, an oil analyst at consultancy IHS Market, said: “We are likely to see the lowest oil prices of the past 20 years in the next quarter.”

West Texas Intermediate, the US oil benchmark, fell to $28.27 in November 2001.

The move raises the possibility of a “crude war” between the three biggest oil blocs — the US, Russia and the Arabian Gulf. Some analysts believe the American shale industry is more vulnerable to low prices than either the Russians or the Saudis.

Robin Mills, head of the Qamar consultancy, told Arab News: “I don’t think this was premeditated but Saudi Arabia has clearly swung quickly into action to put the Russians under pressure. But the Russians, with low debt and a flexible exchange rate, can cope with a few months of low prices.”

The boom in US shale has made the country the biggest oil producer in the world, but with high financing costs. Lower global prices would put a lot of shale companies out of business.

On the other hand, American motorists, and President Donald Trump, would be pleased to see lower fuel prices in an election year.

In Moscow, one prominent financier with ties to the Kingdom played down the long-term significance of the Vienna fallout.

Kirill Dmitriev, chief executive of the Russian Direct Investment Fund, told Arab News: “Saudi Arabia is our strategic partner, and cooperation between our two countries will continue in all areas. We will also continue to work within the framework of the Russia-Saudi Economic Council.”

One Russian official, who asked not to be named, added: “There is a good relationship between Alexander Novak, Russian energy minister, and his Saudi counterpart Prince Abdul Aziz bin Salman, and I am sure they will continue talking to each other less formally.”

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