Saudi Arabia’s Economic Diversification and Job Opportunities in the Construction and Technology Sectors
Saudi Arabia, a country that has been heavily reliant on its oil reserves for several decades, is now on a path of economic diversification. With Vision 2030, Saudi Arabia’s Crown Prince Mohammed bin Salman is proving that the Kingdom could perform well in non-oil private sectors too. As Saudi Arabia’s private sector expands rapidly, the Kingdom is expected to provide more job opportunities to nationals and foreign talents alike in the coming years.
Construction Sector
Giga-projects like NEOM are presenting enormous job opportunities in the construction sector, along with offering employment in various other areas including advanced technologies like artificial intelligence. According to Grace Najjar, Project Management Institute’s regional managing director for the Middle East and North Africa region, the construction industry is expected to play a crucial role in achieving the goals set forth by Vision 2030, providing immense job opportunities in the future. She further noted that Saudi Arabia’s construction sector will witness high demand for skilled professionals which include project managers, engineers and architects.
“Over 5,200 projects across Saudi Arabia, with a combined worth of $819 billion, are currently underway, representing 35 percent of all active GCC (Gulf Cooperation Council) project values. With such a vast number of projects, there will be a significant demand for skilled professionals in the construction industry, including project managers, engineers, architects and skilled labor,” said Najjar.
Earlier in May, a report released by the US-Saudi Business Council noted that the Kingdom’s construction sector saw the value of awarded contracts increasing to $51.3 billion in 2022 — a 35 percent rise compared to the previous year.
Advanced Technologies
The growth of the construction sector in Saudi Arabia is expected to simultaneously increase job opportunities in advanced technologies like artificial intelligence, especially considering the fact that building firms are making use of AI to elevate efficiency and safety. “AI-powered construction is taking the industry by storm, and it has the potential to improve productivity, safety and quality in construction projects. AI can be used to streamline project management, including scheduling, resource allocation and risk management,” said Najjar.
According to the latest Future of Jobs report by the World Economic Forum, the fastest-growing roles in Saudi Arabia will be driven by technology and digitization in the Kingdom. The report noted that Saudi Arabia will witness a sharp rise in demand for AI and machine learning specialists, as almost all businesses are currently undergoing a digital transformation.
Hybrid Mode of Work
It was during the pandemic outbreak that several companies gave employees a provision to work from home. However, even as the pandemic waned, many companies and employees all over the world still prefer a hybrid mode of work and the Kingdom is no different. “Our recent data shows that ‘software engineer’ came in sixth place among the top jobs in the Kingdom in 2022, with 45.7 percent of those openings offering a hybrid option; the highest percentage among the top 10 jobs,” said Ranim Al-Amin, Head of government strategic partnerships in Saudi Arabia at LinkedIn.
She added: “It is also worth noting that 10.3 percent of all entry-level jobs allowed a remote or hybrid format, witnessing a 5.7 percent increase from last year whereas senior-level jobs remained unchanged from last year with only 8.9 percent offering remote work.”
Unemployment Rate
Meanwhile, Saudi Arabia, in line with the targets outlined in Vision 2030, is making great strides in reducing the unemployment rate. According to the General Authority for Statistics’ labor force survey, the unemployment rate fell to 8 percent in the fourth quarter of 2022, from 9.9 percent in the previous three months. Hardly surprising then that the Kingdom has set itself a target unemployment rate of 7 percent by 2030.
Conclusion
Saudi Arabia’s economic diversification is opening up new job opportunities in the construction and technology sectors. With over 5,200 projects worth $819 billion currently underway, the construction sector is expected to witness high demand for skilled professionals which include project managers, engineers and architects. The growth of the construction sector in Saudi Arabia is expected to simultaneously increase job opportunities in advanced technologies like artificial intelligence. The Kingdom is also witnessing a rise in demand for AI and machine learning specialists, as almost all businesses are currently undergoing a digital transformation. The hybrid mode of work is also gaining popularity in the Kingdom, with several companies offering remote or hybrid work options. With the unemployment rate falling to 8 percent in the fourth quarter of 2022, Saudi Arabia is making great strides in reducing unemployment and is targeting a rate of 7 percent by 2030.