Saudi forecasts 2018 unemployment rate to fall to

Saudi Arabia’s unemployment rate is expected to fall to nearly 12 per cent next year, down from 12.8 per cent recorded at the end of the second quarter of this year, the Saudi Economy Ministry has said.

As the Kingdom’s 2018 budge was released yesterday the ministry said that unemployment will continue to decline gradually due to expected economic growth and the rise in expat fees.

For the past three years Saudi Arabia has nationalised many economic sectors in a bid to reduce unemployment.

The ministry expected the unemployment rate to reach about 10.6 per cent by 2020. The Kingdom’s Vision 2030 plan aims to reduce the unemployment rate to 7 per cent.

Read: Saudi Arabia’s budget deficit to reach $52bn next year

The country is also seeking to provide 450,000 jobs for Saudis and 1.2 million jobs by 2020.

The unemployment rate in Saudi Arabia increased at the end of the second quarter of 2017 to 12.8 per cent, compared to 12.7 percent recorded in the previous quarter.

The slight rise in the unemployment rate coincides with government austerity measures as a result of falling oil prices, the country’s main source of income.