'Govt must capitalise on Saudi need for HR'

Ambassador highlights key opportunities, urges workforce training, strategic engagement

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KARACHI:

Pakistan's Ambassador to Saudi Arabia, Ahmad Farooq, has stated that the next two years will be crucial for Pakistan in terms of expanding its presence in Saudi Arabia which offers abundant opportunities in construction, IT, healthcare, and hospitality sectors. Pakistan must focus on diversifying Saudi Arabia's economy under Vision 2030, moving away from fossil fuels, he said.

"If we do not claim our share immediately, it will be taken by competitors. But to achieve this, Pakistan needs to focus on improving its workforce by imparting training as per Saudi requirements," he said while speaking at a meeting during his visit to the Karachi Chamber of Commerce and Industry (KCCI).

He highlighted Saudi Arabia's goal of becoming a regional IT hub with multibillion-dollar investments, leading to a rising demand for human resources and expertise.

Farooq also pointed to Saudi Arabia's focus on cultural and tourism development, which has led to massive growth in the hospitality and hotel sectors. Over the next decade, Saudi Arabia will host four major international events: the Asian Football Cup (2027), the Asian Winter Games (2029), the World Expo in Riyadh (2030), and the FIFA World Cup (2034).

"To support these events, Saudi Arabia is investing heavily in infrastructure, including the construction of 250 new hotels. This expansion creates opportunities for Pakistan's home textile industry, food exports, and trained workforce in hospitality and housekeeping."

Farooq noted that the construction sector in the Kingdom is booming, driven by mega-projects such as Neom City and extensive infrastructure developments. He said that Pakistani contractors have a great opportunity to participate, as Saudi Arabia faces a shortage of reputable contractors.

"Companies from around the world are securing lucrative contracts, and Pakistan must also seize this opportunity," he said.

Demand for building materials, including furniture, marble, electrical cables, and others, is soaring in Saudi Arabia. The healthcare sector is also evolving, providing openings in pharmaceuticals, surgical equipment, and medical tourism.

Farooq highlighted a significant 40% increase in exports to Saudi Arabia during 2023-24, with the IT sector witnessing an impressive 50% growth.

"The embassy's primary focus is on promoting trade and investment. Last year, two major Saudi business delegations visited Pakistan, which led to the signing of 34 Memorandums of Understanding (MoUs) worth $3 billion. Of these, MoUs worth $700 million have already entered the implementation stage, marking the beginning of a promising economic collaboration."

He also emphasised the rising demand for skilled manpower, with over 3 million Pakistanis currently residing in Saudi Arabia. However, 97% of them are blue-collar workers.

KCCI President Jawed Bilwani said that Saudi Arabia remains Pakistan's largest source of remittances, contributing $7.5 billion in FY24, while the extension of a $3 billion deposit to Pakistan's State Bank has further stabilised the economy.

Meanwhile, leading property magnate and Olympic Group Chief Operating Officer Abdul Kareem Adhia, who conducts business in IT, hotels, and transport in Saudi Arabia, urged Pakistanis to leverage the opportunities available there. He mentioned that Saudis highly regard Pakistanis for their strong reputation in business matters and support many Pakistani startups without any interest rate. "If a Pakistani presents an appealing startup idea that strikes the Saudis, they will back it," he said.

Pakistani investors shared some challenges in Saudi Arabia with the Express Tribune, including the mandatory requirement for a large paid-up capital for non-natives.