HR market makes up 0.4% of global sector

HR market makes up 0.4% of global sector

RIYADH (Agencies): Saudi Arabia’s human resources sector is worth just 0.4 percent of the international market despite the Kingdom being ranked third globally for attracting foreign labor.
Figures released by the Federation of Saudi Chambers show the HR market stands at just over SR6 billion ($1.6 billion).The global HR market is estimated at about SR1.5 trillion. The relatively small size of the sector has led the FSC to repeat its demand for financing institutions to provide help to the labor leasing arena by reviewing the components, market size and opportunities available.
The call came as the National Committee for Human Resources Companies revealed its own initiative to finance and install labor leasing services in the Saudi market for both the business sector and individuals. The initiative aims to push banks and various financial institutions to provide financing products and installment services for leasing labor in the Saudi market.
Human resources companies reviewed studies that prove the clients’ need to finance labor leasing and installment services, and investment opportunities in light of the large size of the labor market in the Kingdom, Saudi Press Agency reported.
They pointed out that human resources companies have a good share of the labor market and provide various advanced services and products, including hourly rental.
They are present in all regions of the Kingdom, and have invested millions of riyals in advanced technologies and systems to manage their various operations, the human resources companies said.
SISCO sticking to expansion plans despite huge profit drop: CEO
Saudi Industrial Services Co. is going to push ahead with its expansion plans despite seeing its profits plunge 93 percent in the first half of the year.
The firm’s CEO, Mohammed Al Mudarres, told Argaam that SISCO is continuing with its proposed strategy in acquisitions and expansion to achieve its strategic objectives for 2025 and 2026.
Al-Mudarres pointed out challenges in the port and logistics sector during the first half of the year, due to threats related to supply chains between China and Europe, rising shipping rates, and closures in China and shutdown of some plants.
While the firm pulled in just SR3.9 million in the first six months of 2022 compared to SR54.7 million during the same period the previous year, the second quarter of this year did see a rally in profits.
Gains over those three months stood at SR3.1 million, compared to SR0.8 million in the first quarter, driven by higher profitability at its subsidiary Kindasa Co. coupled with performance improvement from associate companies.
The firm is expected to achieve better results in the second half of 2022, on improved performance of the ports, logistics, water and other sectors, according to Al-Mudarres. The top official indicated that customs duties and inflation in commodity prices were among the reasons that led to certain challenges faced by the import sector.
He concluded that this is a temporary period, as the market will become accustomed in the coming months and adapt to the current price rates.
SISCO declared a 4 percent interim dividend for 2022, as per its dividend policy.

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