Educational Outcomes and Industry Needs:

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Educational Outcomes and Industry Needs Saudi
Aramcos Perspective April 8, 2007 Khalid
Al-Falih Sr. VP Industrial Relations
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Outline

• The Kingdoms economy and its national
  imperatives
• Industry challenges
• Output of education systems and industry needs
• Partners in educational reform your role
• Summary

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Saudi Economy Structural Challenges
1000 US per Person

• Continued dependency on oil for public finances

Other

• Per Capita GDP trailing international levels

Oil Revenues

• Rising energy intensity
• High dependency ratio
• High unemployment

Source SAMA, BP Statistical Bulletin
4
National Imperatives

• Upgrade Standard of living and quality of life
• Enhance human resource development
• Develop science and technology
• Build capacity for sustainable development
• Diversify economic base
• Source Extracted from the 8th Development Plan

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National Imperatives (Contd)

• Keep pace with global economic and technological
  developments
• Expand and ensure quality of education, training,
  health, and social services
• Capitalize on the private sectors eagerness to
  engage in socio-economic development
• Create appropriate job opportunities
• Source Extracted from the 8th Development Plan

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Interdependent Themes
HRD Education
HRD Education
Industry Challenges
Industry Challenges
Your Role
Your Role
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Industry Challenges (Oil Gas)

• Globalization of business/practices
• Geo political considerations of energy business
• Higher demand for energy international and
  domestic
• Environmental concerns
• Shortage of talented professionals

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Industry Challenges (Chemical Industry)

• Vital for world prosperity
• 70,000 products and 2.24 trillion
• 10 million direct 50 million indirect
  employees
• Challenged by commoditization
• Faced with talent shortage
• KSA business is limited, focused on primary
  commodities

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The Global Chemical Industry Output 2004 (2.24
Trillion)
We must devise strategies to capture a bigger
portion of the overall chemical industry
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Engineers needed for Saudi Aramco Sabic
projects (2005-2010)
Source Presentations made by Sabic and Saudi
Aramco at the Mega-projects Conference at
KFUPM 2006
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Interdependent Themes
HRD Education
HRD Education
Industry Challenges
Industry Challenges
Your Role
Your Role
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Saudi Aramco Employee Profile
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Engineers As Members of Saudi Aramco Management
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Desired Engineering Education Attributes

• Solid technical knowledge and competencies
• Project based curriculum
• Applied knowledge
• Awareness and consistent application of systems
  thinking
• Multi-disciplinary exposure
• Proficient use of information technology
• Strong project management skills
• Good knowledge of quality approaches

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Desired Engineering Education Attributes (Contd)

• Leadership skills
• Business acumen in decision making
• Work Ethics
• Curiosity, experimentation, and innovation
• Communication and collaboration
• Lifelong learning
• Foreign language proficiency
• Interaction competencies personal, social, and
  inter-cultural

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Education Pockets of Excellence

• Significant improvement in literacy rates
• Government scholarship programs
• Accredited schools and institutions
• High quality private schools
• Saudi Aramcos College Preparatory Program
• Gifted student program
• Exceptional Saudi students
• However, the overall system is not
  internationally competitive.

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Skill Supply Demand (2001-2003)
Source National Commercial Bank and Saudi
Aramco Recruitment
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Engineering Graduates Vs. High School Graduates
201
211
231
201
231
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Ratio of Engineers to Every 100,000 Citizens
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8th Grade Math Scores
Math scores
605
532
332
Observations

• KSA math scores fall well below the international
  benchmark for low quality
• Top 5 performing countries are in the Pacific Rim
• 8th Grade Math Scores are almost half those of
  Singapore and South Korea, and fall under the
  category of low quality

Source TIMSS 2003 Technical Report Mathematics
testing Content domain number 30, algebra
25, measurement 15, geometry 15, data 15.
Cognitive domain knowing facts 15, using
concepts 20, solving problems 40, reasoning 25.
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8th Grade Science Scores
Science scores
577.8
536.1
397.7
Observations

• Science scores also fall short of the
  international low quality benchmark
• Top four countries are in the Pacific Rim
• 8th Grade science scores are about 200 points
  less than those of Singapore and Taiwan, and fall
  in the category of low quality

Source TIMSS 2003 Technical Report Science
testing Content domain life sciences 30,
chemistry 15, physics 25, earth sciences 15,
environmental sciences 15. Cognitive domain
factual knowledge 30, conceptual understanding
35, reasoning and analysis 35.
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Math Placement Test Results for Apprentice and
CPP candidates 2004 - 2006
M4 Grade 8
N 36,000
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English Placement Test Results for Apprentice and
CPP candidates 2004 - 2006
English 1 Absolute beginner English 2
Grades 7 / 8
N 36,000
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Current Desired Education Attributes
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Interdependent Themes
HRD Education
HRD Education
Industry Challenges
Industry Challenges
Your Role
Your Role
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Role of (AICHE-SAS)

• Support efforts to elevate educational outcomes
• Promote awareness of the need for more quality
  engineers
• Engage pre-college students and promote awareness
  and value of engineering majors
• Collaborate with academia, government, and
  industry to promote RD
• Participate in mentoring and teaching at
  educational institutions
• Identify and share best practices in engineering

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Summary

• There is a critical need to improve educational
  outcomes.
• Business, industry, and professional societies
  should play their roles in educational reform.
• Concerted efforts are needed to increase the
  number and improve quality of engineering
  graduates.
• Awareness of the importance of engineers to the
  economic growth of the country should be promoted.

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Educational Outcomes and Industry Needs Saudi
Aramcos Perspective Thank You
Khalid Al-Falih Sr. VP Industrial
RelationsApril 8, 2007