RIYADH: Saudi Arabia's unemployment rate stood at 10 percent in 2010, highlighting the need to create millions of jobs for nationals in the top oil exporter, the Kingdom's labor minister said Tuesday. Unemployment in the Kingdom, which sits on more than a fifth of global oil reserves, climbed to about 10.5 percent in 2009 from 8.2 percent in 2000, sparking some protests. “Ten percent in 2010,” Labor Minister Adil Fakieh told reporters on the sidelines of a government-sponsored business conference when asked about the latest jobless figures. “We need to create 5 million jobs for nationals by 2030,” Fakieh said. Retail, services and manufacturing sectors will grow to create the needed jobs as the government moves to diversify the economy away from oil, the minister said. Banque Saudi Fransi chief economist John Sfakianakis said creating five million jobs would be a huge challenge for Saudi Arabia. “Retail services and manufacturers are two sectors which traditionally provide jobs predominately to expatriates,” he said. In 1994, the government began a so-called “Saudization” plan, setting quotas for the number of nationals private firms must hire. The program has had limited success as under 10 percent of private sector jobs were held by Saudis in 2009. Almost 70 percent of Saudis are the under the age of 30, with their ranks growing around 2.4 percent annually. Looking to create thousands of new jobs and diversify its oil-dominated economy, Saudi Arabia launched a $400 billion five-year spending plan in 2008, the largest stimulus relative to gross domestic product among the world's 20 leading nations. Meanwhile, former US President Bill Clinton said small- and mid-sized private enterprises were key to the Kingdom's long-term job growth and prosperity. Speaking at the 5th Global Competitiveness Forum Tuesday, Clinton cautioned countries in Middle East and North Africa that there were no substitutes for good governance and opportunities for the uneducated and impoverished. Clinton also noted the Kingdom's “10x10 program represents Saudi Arabia's commitment to thinking in terms of the future — not just thinking of the present.” “I'm trying to give a greater sense of urgency for the profound implications of 10x10 for Saudi Arabia, the greater region and the key role of the innovation.” Earlier, the Saudi Arabian General Investment Authority (SAGIA) honored the 30 fastest growing Saudi companies in a ceremony attended by Clinton and SAGIA Gov. Amr Al-Dabbagh. “The list also shows that entrepreneurship in the Kingdom is surging,” said Al-Dabbagh. “Saudi Fast Growth 100 winners all have a track record of extraordinary revenue growth, while accounting for the creation of thousands of new jobs,” he added. The SFG100 list measures the fastest growing Saudi companies in two categories - companies running for at least five years and startups. The “Saudi Fast Growth Initiative 100” is a national program to promote entrepreneurship and innovation in Saudi Arabia that ranks the fastest-growing emerging companies in the Kingdom.
