KSA This Week: HRDF jobs +23% to 329,000, non-oil PMI at a 6-month high
This week from the Kingdom: HRDF support helped employ 329,000 Saudis in the first half of 2026, the non-oil PMI climbed to a six-month high of 53.8, Qiwa documented more than 419,000 Saudi employment contracts in Q2, weekly consumer spending jumped 11.5% to $4.21 billion, banking-system assets reached $1.5 trillion, Nokia opened its first Riyadh R&D centre under 'Made in Saudi', and the non-oil economy kept growing as diversification deepened. Here is what matters for employers and businesses in Saudi Arabia.
Jobs & Labour
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329,000 Saudis employed with HRDF support in H1 2026 (+23% year on year) |
Saudi Arabia's Human Resources Development Fund (HRDF) contributed to the employment of 329,000 citizens in the first half of 2026, up 23 percent from a year earlier, through its training, empowerment and career-guidance programmes.
The fund provided about SR4.9 billion ($1.3 billion) in direct support to individuals and businesses over the six months, and more than 1.69 million citizens benefited from its services. The number of businesses receiving HRDF support exceeded 171,000 — annual growth of 25 percent — with micro, small and medium-sized enterprises accounting for 95 percent of the total.
The figures come as Saudi Arabia's overall unemployment held around 3.1 percent, with 95.8 percent of unemployed Saudis saying they would accept a private-sector job. HRDF said its programmes are designed to help private employers recruit and train Saudi workers in line with the National Labor Market Strategy and Vision 2030.
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The TASC Take Government support is accelerating Saudi hiring across the private sector, especially in SMEs — but employers still need to recruit, train, onboard and payroll those workers compliantly and at speed. That is exactly what TASC's staffing, EOR and Saudisation-ready payroll services deliver. |
Source: Arab News
Economy & Trade
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53.8 Saudi non-oil PMI in August — a 6-month high (Riyad Bank / S&P Global) |
Saudi Arabia's non-oil private sector expanded at its fastest pace in six months in August, with the Riyad Bank Purchasing Managers' Index rising to 53.8 from 53.1 in July, according to the S&P Global survey. It was a fifth consecutive month of expansion and the strongest improvement in business conditions since February, though still below the survey's long-run average of 56.8.
Output grew at its strongest pace in seven months and new orders rose for a fifth straight month, driven by robust domestic demand, even as new export orders declined amid regional tensions. Employment expanded for a second consecutive month and business confidence for the year ahead rebounded to a seven-month high.
Riyad Bank chief economist Naif Al-Ghaith said the non-oil economy is 'maintaining positive momentum through the third quarter,' with domestic investment and consumption underpinning near-term growth.
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The TASC Take A strengthening non-oil sector with output at a seven-month high and firms hiring for a second month running keeps demand for talent rising across services, retail and industry. Fast, compliant staffing helps businesses scale to meet that demand. |
Source: Arab News
Labour & Saudisation
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419,381 Saudi employment contracts documented via Qiwa in Q2 (258,829 new Saudis joined) |
Saudi Arabia's Qiwa platform, run by the Ministry of Human Resources and Social Development, documented 419,381 employment contracts for Saudis during the second quarter of 2026, while 258,829 new Saudi beneficiaries joined the platform.
Qiwa also issued 72,407 certificates to businesses that met approved Saudization requirements and recorded more than 3 million services during the quarter, continuing efforts to formalise employment relationships and strengthen national talent participation. The ministry has been raising documentation-compliance targets — measured as the ratio of documented contracts to total employee contracts — as part of a wider tightening of contract rules.
The platform, which has surpassed 2 million registered firms, recently won the WSIS Prize from the International Telecommunication Union and the 2026 Gulf Customer Experience Award.
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The TASC Take As documentation and Saudization compliance tighten on Qiwa, employers must keep every contract, work-permit profession and Saudisation ratio in order. Getting that right the first time is exactly where TASC's payroll, PRO and compliant-staffing services protect employers. |
Source: Arab News
Economy & Trade
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$4.21bn weekly Saudi consumer spending, week to 29 August (+11.5%) |
Saudi consumer spending rose 11.5 percent to SR15.80 billion ($4.21 billion) in the week ending 29 August, driven by a sharp increase in food and beverage purchases and continued back-to-school spending, according to Saudi Central Bank (SAMA) data. Point-of-sale transactions rose 7.6 percent to 255.38 million.
Food and beverage spending jumped 22.8 percent to SR2.59 billion, restaurants and cafes reached SR1.78 billion, and clothing rose 11.8 percent to SR1.41 billion. Education-related spending climbed a further 5 percent to SR1.1 billion at the start of the academic year, while books and stationery and telecoms were among the strongest performers. Riyadh led regional spend at SR5.5 billion, followed by Jeddah at SR2.11 billion.
Economist Talat Hafiz said the data points to stronger consumer activity and higher spending per transaction rather than inflation, with annual inflation running around 1.8 percent.
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The TASC Take Resilient consumer demand keeps retail, F&B and hospitality employers hiring — the front-line, seasonal and shift-based roles where fast, compliant staffing and payroll make the difference. |
Source: Arab News
Finance & Capital Markets
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$1.5tn Saudi banking-system assets in July (SAMA), up 6.7% year on year |
Saudi Arabia's banking-system assets rose to SR5.75 trillion ($1.5 trillion) in July, up 0.27 percent on June and 6.71 percent year on year, according to the Saudi Central Bank's (SAMA) monthly data.
Bank claims on the private sector — the largest part of the balance sheet — rose to SR3.266 trillion, driven by real estate, financial and insurance activity, while claims on the government and public enterprises also increased. SAMA's Financial Stability Report noted the sector remains sound, with a capital adequacy ratio of 19.6 percent, a declining non-performing-loan ratio and stress tests confirming resilience.
The expansion underscores a deepening financial sector that channels credit into Vision 2030 projects and the wider non-oil economy.
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The TASC Take A growing, well-capitalised banking sector fuels credit for projects, real estate and businesses across the Kingdom — sustaining hiring in finance, compliance, technology and the sectors that borrowing supports. |
Source: Arab News
Technology
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1st Nokia's first Riyadh R&D centre, focused on Saudi AI and automation talent |
Nokia has launched its first research and development centre in Riyadh, announced during LEAP 2026, focused on AI-powered network automation and orchestration software. The centre pairs Nokia's global expertise with Saudi talent to develop technology locally for use inside the Kingdom and for international export under the 'Made in Saudi' banner.
Mikko Lavanti, president of Nokia Middle East and Africa, said the know-how developed in the Kingdom will have a global market, with the centre specialising in areas such as service management and orchestration, self-organising networks and autonomous 'rApps'. Nokia plans engineering and research roles alongside training programmes, bootcamps and certifications in AI and automation for Saudi talent, and is working closely with local universities.
The centre follows an agreement with the Ministry of Communications and Information Technology, with Nokia aiming to be the Kingdom's 'preferred partner' in technology for Expo 2030 Riyadh and the 2034 FIFA World Cup.
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The TASC Take Global tech firms building R&D and talent pipelines in the Kingdom drive demand for engineers, data and AI specialists — and for training and workforce solutions that help localise and scale technical teams. This is where specialist hiring is in sharpest demand. |
Source: Arab News
Economy & Outlook
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+0.9% Saudi non-oil GDP growth in Q2 2026 as diversification continued (GASTAT) |
Saudi Arabia's non-oil activities expanded 0.9 percent year on year in the second quarter of 2026, even as real gross domestic product declined 4.7 percent, according to the General Authority for Statistics (GASTAT). Oil activities fell 24.8 percent, contributing negatively by 5.4 percentage points to GDP, while non-oil activities contributed positively by 0.6 points.
Growth was broad across the non-oil economy: community, social and personal services led at 4.1 percent year on year, finance, insurance and business services rose 3.3 percent, agriculture 2.6 percent, real estate 1.6 percent, and non-oil manufacturing 0.9 percent. Private consumption grew 0.8 percent and gross fixed capital formation rose 2.7 percent.
The resilience of non-oil activity despite the oil-driven GDP dip reinforces the core Vision 2030 story: an economy steadily rebalancing toward services, industry, tourism and technology, and the jobs those sectors create. The OECD and IMF both expect momentum to accelerate into 2027.
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The TASC Take As the economy rebalances toward non-oil sectors, hiring is shifting with it — into services, tourism, technology and industry. Employers navigating that transition need flexible, compliant workforce solutions to staff up where the growth is. |
Source: Arab News
TASC in Saudi Arabia
Staffing Saudi Arabia's fast-growing private sector
With Saudi hiring accelerating, the non-oil economy expanding and Saudization compliance tightening on Qiwa, employers need Saudi-ready hiring, screening, payroll and EOR — fast and fully compliant. TASC helps you build and mobilise the right team across the Kingdom.
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