Vision 2030: Building partnerships to enhance education and training in KSA s energy sector
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1 7 th Arab-German Education and Vocational Training Forum, October 5 th, 2016 Vision 2030: Building partnerships to enhance education and training in KSA s energy sector Nada Alsheaiby, Lead HR Business Partner, Siemens Saudi Arabia Page 1 siemens.com.sa
2 Saudi Arabia a true regional anchor and global heavyweight with a growing manufacturing base Key data KSA at a glance Population 32 million, one of the world s highest population growth rates (2.8%) 3 rd highest GDP per Capita in G20 Lowest debt to GDP ratio globally Focus sectors: Manufacturing, Petrochemicals, Mining and Minerals, Construction, Healthcare, Transportation Largest oil producer (OPEC) Saudi Arabia Iraq UAE Iran Kuwait Venezuela Nigeria Angola Algeria Indonesia Qatar Ecuador Libya KSA has a major leverage on the oil price development Saudi Arabia has the largest oil reserves and 4 th largest gas reserves in the world 10.2 x10 6 bbl/day Saudi Arabia Iran UAE Egypt Pakistan Qatar Algeria Iraq Kuwait Morocco Sudan Oman Lebanon Tunisia Jordan Yemen Bahrain Libya Highest FDI recipient in MENA 12 th largest country by area 6 x Germany, 3 x Texas 654 in USD billion; Nominal GDP 2015 Only Arab country in the G20 Largest and fastest growing manufacturing and production base in GCC KSA Leads the GCC currency unification, GCC Central Bank is located in Riyadh KSA is one of the largest providers of development aid to Egypt Page 2
3 Most of the Saudi population is under 25 years of age. The youth unemployment rate is around 29%. Age distribution > Saudi universities have the capacity to accept 95% of Saudi high school graduates 95% 63% of Saudi university students are pursuing social sciences and humanities degrees >50% of the Saudi population is younger than 25 years Economic participation rate: 40.2% Unemployment rate of Saudi population: 11.6% Overall unemployment rate: 5.6% Saudi youth unemployment: 29% 36% 38% 50% 4.4% of university graduates are from engineering faculties 20% of unemployed Saudi citizens hold bachelor s degrees Only 10% of Saudi high school graduates enroll for vocational training programs Page 3 The Kingdom's post-secondary education system is substantially focused on producing academics. The government is however investing to address the high demand for vocational skills.
4 Saudi Arabia's Vision 2030 The ambitious determination to transform a nation economically and socially A vibrant society The Kingdom's wealth lies in its people and society and it takes pride in what makes it exceptional: Being the heart of Islamic faith and its national unity. Increase capacity to welcome Umrah visitors from 8 million to 30 million every year Increase life expectancy from 74 to 80 years To have three Saudi cities recognized in the top 100 cities in the world A thriving economy A thriving economy for citizens to fulfill their aspirations. Creating momentum towards an era of prosperity through diversification, education and training, employment opportunities and entrepreneurial development. Move from 20 th largest economy in the world to be among the top 15 Increase SME contribution to GDP from 20% to 35% Increase localization of the Oil and Gas sector from 40% to 75% Increase non-oil revenue from SAR 163 to SAR 1 trillion Increase Public Investment Fund's assets from SAR 600" to over SAR 7 trillion Lower the unemployment rate from 12% to 7% Increase FDI from 3.8% to 5.7% An ambitious nation Any government needs to evolve and improve to keep pace with rising expectations. This requires high standards of transparency, accountability and effectively managed finances: Raise ranking on e-government Survey Index from 36 th to top five nations Raise ranking in Government Effectiveness Index from 80 th to 20 th Rally 1 million volunteers per year; currently 11,000 Page 4
5 Siemens at a glance Siemens AG Established in ,000 employees Active in 200 countries Revenue of 75.6 billion 2,000 employees with >45 nationalities 3 manufacturing and service sites Active in the Kingdom for nearly 90 years Saudization in the green and platinum zones First telephone call with Siemens technology Arabia Electric Ltd. JV with Juffali Group Supplied power lines from Taif to Makkah Expanded transmission and distribution facility Kingdom s first metro rail system in Riyadh The first Made in KSA gas turbine Page 5
6 We work with local partners to jointly educate and train Saudi nationals Collaboration on Education and Training 1. National Power Academy 2. Training collaboration with customers 3. Vocational training and student sponsorship 4. University cooperation 5. International development programs 6. Research and Development Page 6
7 Siemens Dammam Energy Hub (SDEH) We are confident about the Saudi market and are committed to its people Building gas turbines in Saudi, for Saudi and with Saudi talent The first gas turbine plant of its kind in the GCC Built the first Made in KSA gas turbine A joint investment with our long-standing local partner and shareholder A center of excellence that increases knowledge transfer of leading Siemens technologies Page 7 Training tomorrow s experts and leaders Siemens contracted with the Saudi Petroleum Services Polytechnic (SPSP) to sponsor, train and employ over 170 Saudi students Graduates receive further technical training at our global manufacturing facilities to continuously enhance capabilities at the plant Saudi turbine experts built the first Made in KSA gas turbine Partnering with local suppliers to enhance their capabilities The plant is expanding its manufacturing capabilities This provides the opportunity to jointly establish local supply chains that meet customer requirements and increases local value add Collectively, these initiatives support the ramping up of resources and capabilities to build a new industry
8 University collaboration to feed knowledge exchange and talent development opportunities in the interests of all stakeholders Collaboration to shape world-class curricula Talent acquisition to drive workforce localization Guest lecturing as a platform to communicate trends in technology and their implications for society Employer branding through career fairs and Siemens Day events Industrial collaboration to drive research topics Equipment and software installation at laboratories to support training outcomes Orientation to our portfolio through site visits, locally and abroad Tripartite collaboration Siemens, university, customer to train customers employees Page 8
9 The National Power Academy Collaborating to train tomorrow s leaders and experts in the energy market The widening vocational skills gap in the Kingdom prompted the decision to establish a National Power Academy (NPA) Siemens signed a Memorandum of Understanding and Charter with an Aramco-led consortium to become a Founding Stakeholder of the NPA The NPA is a public private partnership that will provide world-class training and create employment opportunities - 6 disciplines, 21 strategic trades - 1,400 students per year - 2 campuses Page 9
10 We are committed to developing local talent Good for Saudi society, good for business Further developing technical competence engineers, technicians and project managers Strengthen diversity by employing more women Targeted talent programs to develop the next generation of leaders Graduate training programs with an international focus Hiring people with special needs Promoting interest in science and technology among school children (Discovery Box) Page 10
11 Siemens CEO Joe Kaeser We are here to stay, because what is important to the Kingdom and its people, matters to Siemens. Page 11
12 Thank you Page 12
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