RIYADH: Saudi Arabia is experiencing a significant transformation as it reduces its reliance on oil and expands into sectors including construction, green energy, and technology. Government initiatives such as the Saudi Nationalization Scheme and Nitaqat motivated private sector employers to hire more Saudi Nationals, resulting in decline in unemployment rate. Moreover, investments in education and vocational training provide the workforce essential skills for emerging industries.
Construction and Tourism Drive Job Growth
Contract awards in the Construction Sector have reached an all-time high in 2024 at $146.8 billion, exceeding the previous year’s record of $118.7 billion. Over 53.8% of the total project awards in the Gulf Cooperation Council came from Saudi Arabia. Rua Al-Madinah and Qiddiya are some of the large-scale projects that have been driving demand for skilled labour. The tourism sector is also expanding with plans to attract 150 million visitors year-on-year by 2030, generating jobs in hospitality, transportation, and cultural services.
Technology and Green Energy Expansion
With foreign investments and initiatives such as the $100 billion AI program and Project Transcendence, a data analytics program, the technology sector continues to grow rapidly, creating thousands of high-skilled jobs in AI, digital transformation and smart city projects like NEOM. As the green energy sector expands, there have been employment opportunities in solar and wind farms, aligning with the kingdom’s sustainability goals.
Saudization and Workforce Inclusion
Government policies such as the Nitaqat program have driven Saudi Nationals to participate in the private sector, especially in retail and tourism. Female workforce participation also increased, accounting for 36.2% by late 2024, reaching more than the target set by Vision 2030. Flexible work opportunities are boosting inclusivity in various industries.
Foreign Investment and Future Challenges
With the Regional Headquarters initiative, over 540 multinational companies have set their bases in Saudi Arabia, generating job opportunities in professional services and consulting. With the introduction of the Golden Visa, many high-skilled professionals have relocated to Saudi Arabia. However, there are still some challenges like bridging skill gaps and improving vocational training. In order to maintain labour market growth, strategic government initiatives and private sector participation are crucial.
