As Saudi Arabia works toward realising Vision 2030, one of the nation’s most significant challenges lies in developing a robust, skilled workforce capable of meeting the demand of an expanding job market. By 2030, it’s predicted that the Kingdom will face a shortage of up to 663,000 skilled workers across both the public and private sectors.
This shortfall could result in a missed economic opportunity valued at $206.77 billion. Addressing this gap isn’t simply about increasing job placements; it requires an intentional alignment between education, vocational training, and the ever-evolving needs of Saudi Arabia’s industries. While expatriates will contribute to addressing these needs, Saudi Arabia’s path to a sustainable workforce lies in developing homegrown talent ready to take on the demands of its burgeoning economy.
At the forefront of the Kingdom’s initiatives is the Saudisation policy, a strategy aimed at reducing reliance on expatriate labour by requiring companies to prioritise local hires. This policy, alongside Vision 2030, emphasises developing a competent and skilled Saudi workforce, with programmes increasingly tailored to meet sector-specific needs. For instance, the Financial Academy, one of the kingdom’s noteworthy educational advancements, has successfully trained over 50,000 professionals in financial services, a sector crucial to the country’s economic goals.
Local universities and institutes are also stepping up by creating their own workforce initiatives, focusing on fields such as technology, healthcare, and engineering. However, there remains a critical need to address whether the talent being trained aligns with the highest demand in the market.
The key question is whether the focus is on truly in-demand skills rather than simply popular or perceived prestigious professions. The alignment between academic output and industry needs will determine how well-prepared Saudi graduates are to step into critical roles across various sectors.
Lessons from abroad: Building a cooperative talent ecosystem
Saudi Arabia could draw insights from successful models abroad, particularly from ecosystems where public and private sectors collaborate to nurture talent. The US state of Missouri, though lesser-known internationally, offers a compelling example. Missouri is a leading manufacturing hub, housing facilities for giants like Boeing, Ford, and GM, and it has prioritised workforce development to ensure a steady pipeline of skilled labour.
Technical colleges, such as Ozarks Technical Community College, work directly with these companies to create customised training programs that prepare students for immediate integration into the workforce.
In Missouri’s ‘pay-to-play’ model, companies engage directly with educational institutions, investing in customised trainings and employee-sponsored programs. This partnership ensures that students gain skills relevant to current industry demands, effectively connecting educational outcomes with workforce needs. A similar approach in Saudi Arabia could streamline the country’s vocational and technical training programmes, allowing industry-specific needs to drive curriculum development.
Next steps for talent strategy
Retention of skilled talent is paramount if Saudi Arabia is to avoid high turnover rates, which can destabilise workforce development. A focus on reducing turnover by building positive workplace cultures, offering competitive benefits, and fostering career advancement opportunities can help keep skilled professionals within the kingdom. Both the public and private sectors need to create incentives for companies that invest in the continued training and development of Saudi talent.
Additionally, a culture of lifelong learning must be embraced. Upskilling and reskilling programs across industries are essential as technology and industry demands evolve. By fostering public-private partnerships, Saudi Arabia can create a more resilient and responsive educational ecosystem. Establishing industry councils with educational stakeholders, for example, could help ensure that workforce skills evolve alongside market demands.
What is for certain is that bridging the skills gap in Saudi Arabia will require a cohesive strategy – one that combines Saudization efforts, international insights, and a commitment to aligning education with industry needs. Through a collaborative approach, Saudi Arabia can cultivate a talent base that will not only fill jobs but drive innovation and growth in the Kingdom for years to come.
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