Saudi Arabia's workforce is projected to grow by 11.6% by 2030, and the impact of AI is significant
A recent study specializing in global workforce issues has revealed highly positive projections for the labor market in the Gulf region, specifically in Saudi Arabia and the United Arab Emirates. The study indicated that the rapid economic expansion in both countries will create a pressing need to employ more than 1.5 million additional workers by 2030, despite global concerns regarding the impact of artificial intelligence on traditional jobs.
Economic vision and growth drivers
This anticipated growth comes within the context of the historic transformations underway in the Saudi economy under the umbrella of "Vision 2030." Since the launch of the Vision, the Kingdom has become a massive workshop aimed at diversifying its sources of income away from oil. This strategic shift has led to the launch of mega-projects in the tourism, entertainment, renewable energy, and smart city sectors, such as NEOM and Qiddiya. These projects not only require labor during the construction phase but also lay the foundations for sustainable economies that demand a continuous workforce for operation, management, and logistics, thus explaining the increasing demand for labor.
Artificial intelligence: a complement, not a replacement
Regarding the ongoing debate surrounding artificial intelligence, a study by ServiceNow and Pearson clarified that while advanced technology has reshaped how governments and businesses operate, it hasn't diminished the demand for human capital in the region. Instead, AI will automate routine and repetitive tasks, freeing up human resources to focus on tasks requiring supervisory skills, critical thinking, technical expertise, direct customer interaction, and the resolution of complex and urgent problems.
International figures and comparisons
The study estimated that Saudi Arabia alone would need about 650,000 additional workers to achieve the goals of Vision 2030, expecting the size of the workforce in the Kingdom to grow by up to 11.6% until 2030. The importance of this percentage is highlighted when compared to advanced economies that will witness a noticeable slowdown in labor market growth; forecasts indicate that employment growth in the United States will not exceed 2.1%, and in Britain 2.8% during the same period, reflecting the vitality of the Gulf economy and its ability to create opportunities.
Target sectors and required skills
The study identified the key sectors that will drive this employment boom in Saudi Arabia and the UAE, including construction, transportation and logistics, healthcare, hospitality and tourism, retail, energy, financial services, and information technology. The findings concluded that there will remain a need for qualified expatriate and local workers, particularly those with business skills, advanced technical training, familiarity with modern digital technologies, and experience in the services sector. The study emphasized that countries investing in training and retraining programs will be best positioned to capitalize on this surge in employment opportunities.
