The battle for talent: Saudi Arabia’s high-stakes bet on human capital

The battle for talent: Saudi Arabia’s high-stakes bet on human capital
Ultimately, the success of Saudi Arabia’s tech talent strategy will be measured not just by enrollments or credentials, but by how effectively new graduates are absorbed into the workforce. (SPA)
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Updated 12 July 2025
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The battle for talent: Saudi Arabia’s high-stakes bet on human capital

The battle for talent: Saudi Arabia’s high-stakes bet on human capital
  • Kingdom’s rapidly expanding sectors are creating an unprecedented demand for highly skilled professionals

RIYADH: As Saudi Arabia accelerates its transformation under Vision 2030, a critical question has emerged: Can the Kingdom build a homegrown tech workforce strong enough to power its digital ambitions?

From artificial intelligence and smart mobility to fintech and clean energy, the Kingdom’s rapidly expanding sectors are creating an unprecedented demand for highly skilled professionals. Yet despite billions in investments and major infrastructure rollouts, supply still lags behind demand.

This challenge, however, is far from ignored.

“We are proud to take human capital development to the next level,” said Minister of Human Resources and Social Development Ahmed Al-Rajhi, during the launch of the National Skills Platform in April 2025. “Technical expertise alone is not enough. Leadership, strategic thinking, and adaptability are equally important, and skilling and reskilling for the workforce is a national priority that all stakeholders should engage in.”

The AI-powered platform connects Saudi job seekers to customized learning pathways, marking a shift toward demand-driven education and training.




Despite billions in investments and major infrastructure rollouts, supply still lags behind demand. (SPA)

A national priority

Education Minister Yousef Al-Benyan, who also chairs the executive committee of the Human Capability Development Program, emphasized the broader purpose behind the Kingdom’s reforms.

“Vision 2030 is not just a roadmap for national transformation — it is a model for how investment in people can drive sustainable progress,” Al-Benyan wrote in an April op-ed for Arab News titled “Vision 2030: Elevating human capability in a changing world.”

Citing the World Economic Forum’s Future of Jobs Report 2025, he noted that while 170 million new jobs will emerge globally by 2030, another 92 million will be displaced. He warned that 44 percent of core skills are set to change within five years, with digital and AI literacy becoming as fundamental as reading and math.

“Without these,” he wrote, “individuals are unable to participate meaningfully in today’s digital economy.”




Yousef Al-Benyan, Saudi education minister. (Supplied)

Scaling up training and inclusion

This outlook is shaping some of Saudi Arabia’s most ambitious workforce initiatives. Among them is the Waad National Training Campaign, launched in 2023 and supported by more than 70 organizations. The program surpassed 1 million training opportunities in its first phase and now targets 3 million by the end of 2025.

Waad’s Women’s Employment Track has been particularly successful, with a 92 percent retention rate in tech roles—contributing to a record rise in female participation across the digital economy.

Waad, Al-Rajhi noted, is an investment in “the promise of human potential.”

Meanwhile, the Future Skills Training Initiative, led by the Ministry of Communications and Information Technology since 2020, has provided training to hundreds of thousands of Saudis in areas like cybersecurity, data science, and cloud computing. Supported by the Digital Skills Framework and private-sector partnerships, it has grown steadily.

One such partnership — a 2023 collaboration with IBM — aimed to train 100,000 Saudis in AI and machine learning.




Ahmed Al-Rajhi, Saudi minister of human resources and social development. (Supplied)

Talent gaps persist

Despite this progress, a 2025 report by Nucamp and the ministry highlighted a 20 percent shortfall between tech job vacancies and qualified local talent. Critical roles such as AI engineers, cloud architects, and data analysts remain in short supply.

“Demand for AI and cloud experts far exceeds supply,” said Ahmed Helmy, managing director for SAP in the Middle East, in an April interview with Asharq Al-Awsat. The result: fierce competition among employers.

To meet short-term needs, Saudi Arabia is tapping into international expertise. The Premium Residency Program, launched in 2021, allows skilled foreign professionals to live and work in the Kingdom without a local sponsor. By late 2023, more than 2,600 had taken advantage of the scheme.

In 2024, five new visa categories were introduced to attract investors, entrepreneurs, and tech specialists. These include provisions that exempt founders from Saudization quotas for their first three years—providing flexibility to scale teams while supporting local hiring in the long term.

“Such incentives allow skilled professionals to have a more stable life and make long-term investments in their careers in Saudi Arabia,” said Raymond Khoury, partner at Arthur D. Little, in May.

Still, officials stress that international hiring is a stopgap — not a substitute.

“While attracting global talent is crucial, sustainable growth depends on balancing international expertise with local knowledge development,” said Mamdouh Al-Doubayan, MENA managing director at Globant.

To that end, foreign hires are increasingly being integrated not just as employees, but as mentors and trainers.

Startups adapt with remote models

In the private sector, startups are turning to remote hiring to bypass local talent shortages. A 2024 study by Wamda found that many Saudi companies are building distributed teams, sourcing tech talent from Egypt, Jordan, and other regional markets. This strategy shortens hiring cycles and enables around-the-clock operations.

The trend aligns with the Kingdom’s Telework Initiative, which certifies employers to offer remote roles to Saudis—especially women and those living outside major urban centers.

Competitive pressures from giga-projects

The hiring challenge became especially acute in 2023. That year, PwC’s Middle East Workforce Survey reported that 58 percent of Saudi firms struggled to fill key tech roles. A MAGNiTT report found that 65 percent of startup founders saw the shortage of senior tech talent as their top obstacle.

A concurrent survey by Flat6Labs noted that many startups were delaying product launches due to staffing shortages, losing talent to mega-projects offering 30 to 50 percent higher salaries.

“Engineers and product managers often defect to deep-pocketed giga-projects that offer salaries 30–50 percent above startup pay,” wrote venture adviser Aditya Ghosh in a November 2023 LinkedIn Pulse column.

Bridging the divide

Education leaders are working to close this gap. Khalid Al-Sabti, chairman of the Education and Training Evaluation Commission, said in a 2024 Arab News interview that Saudi Arabia is aligning its curriculum with global benchmarks.

“We must ensure our graduates meet international standards to compete globally,” he said.

This includes revising curricula, emphasizing hands-on projects, and embedding industry into the classroom through partnership programs. The Talent Enrichment Program, for example, spans 160 countries and offers global certifications to Saudi learners.

Encouragingly, Saudi Arabia’s position in the IMD World Talent Ranking improved in 2023. Companies such as STC, Aramco Digital, and Elm are now hiring directly from local boot camps and training centers — evidence that education and industry are beginning to align.

The road ahead

Ultimately, the success of Saudi Arabia’s tech talent strategy will be measured not just by enrollments or credentials, but by how effectively new graduates are absorbed into the workforce.

If current reforms continue at scale, the Kingdom may not only satisfy its domestic tech demand — but emerge as a regional hub for digital talent.

As Al-Benyan wrote: “By investing in people, fostering global collaboration, and redefining the future of work, Saudi Arabia is demonstrating that human capability is the ultimate driver of progress.”

 


Saudi Arabia’s Red Sea Global eyes IPO, REITs as resort openings gain pace

Saudi Arabia’s Red Sea Global eyes IPO, REITs as resort openings gain pace
Updated 20 August 2025
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Saudi Arabia’s Red Sea Global eyes IPO, REITs as resort openings gain pace

Saudi Arabia’s Red Sea Global eyes IPO, REITs as resort openings gain pace
  • Shoura Island will welcome guests this year at 11 luxury resorts
  • Construction at the wellness-focused Amaala project is progressing rapidly

RIYADH: Saudi Arabia’s Red Sea Global is considering a range of alternative financing options in the near future, including an initial public offering or converting assets into real estate investment trusts, according to its chief executive officer.

Speaking to Al-Eqtisadiah, John Pagano said no final decisions have been made, but emphasized the company’s focus on leveraging current momentum, with resorts now operational and more hotel openings expected this year.

Shoura Island, the flagship of the Red Sea destination, will welcome guests this year at 11 luxury resorts operated by global hospitality brands, including Rosewood, Four Seasons, Grand Hyatt, EDITION, and Raffles.

Construction at the wellness-focused Amaala project is also progressing rapidly, with core infrastructure complete and its first hotels nearing launch, Pagano said.

Six resorts have opened under the Red Sea destination so far, including Desert Rock and Shebara, which are fully owned and operated by Red Sea Global. The exclusive Thuwal Private Retreat has also been unveiled as the company’s third destination.

Red Sea Global has also launched residential offerings on Shoura and Ummhat islands, in addition to announcing Lahak Island earlier this year, which drew strong local and international attention, he said.

Amaala is set to open by year-end and will feature wellness and hospitality brands such as Jayasom, Six Senses, Rosewood, Equinox, and Clinique La Prairie. The destination aims to deliver experiences centered on healing, exploration, and renewal.


Saudi matcha imports surge 900% as demand reshapes Kingdom’s cafe sector

Saudi matcha imports surge 900% as demand reshapes Kingdom’s cafe sector
Updated 20 August 2025
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Saudi matcha imports surge 900% as demand reshapes Kingdom’s cafe sector

Saudi matcha imports surge 900% as demand reshapes Kingdom’s cafe sector

RIYADH: Saudi Arabia’s imports of Japanese matcha skyrocketed by nearly 900 percent in 2023 to 81,000 kilograms at a value at SR9 million ($2.40 million), up from just 9,000 kilograms in 2022, highlighting the rapid expansion of the drink’s market presence across the Kingdom.

The momentum continued into 2024, with imports totaling 46,000 kilograms worth SR7 million, reflecting sustained consumer demand and the growing role of matcha in the Kingdom’s cafe sector, Al-Eqtisadiah reported.

Cafes are capitalizing on the trend, with Jon & Vinny’s in Riyadh reporting weekend sales of 350 matcha cups per branch, making up 22 percent of beverage revenues, according to Al-Eqtisadiah.

The cafe uses a premium Japanese blend priced at SR1,200 per kilogram. Similarly, Pro 92 Cafe said matcha lattes alone contribute 10.5 percent of total sales, consuming over 150 kilograms of matcha monthly across branches.

The broader green tea category — which includes matcha — accounted for SR74 million in Saudi imports in 2024, totaling 2.3 million kilograms. In comparison, 2023 saw 2.5 million kilograms imported at a value of SR79 million, Al-Eqtisadiah reported.

Cups of matcha are sold at prices ranging from SR16 to SR29, depending on the outlet. This price variation has spurred a growing home-preparation market, with local Instagram-based businesses selling matcha kits priced between SR110 and SR180.

Driven by health-conscious consumers and youth interest in Japanese culture, matcha is carving out a permanent share in the Kingdom’s beverage landscape.


Closing Bell: Saudi main index ends lower at 10,878

Closing Bell: Saudi main index ends lower at 10,878
Updated 20 August 2025
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Closing Bell: Saudi main index ends lower at 10,878

Closing Bell: Saudi main index ends lower at 10,878
  • MSCI Tadawul Index fell 0.02%, to close at 1,406.62
  • Parallel market Nomu lost 0.52% to end at 26,629.95

RIYADH: Saudi Arabia’s Tadawul All Share Index edged down on Wednesday, slipping 3.64 points, or 0.03 percent, to close at 10,878.07. 

The benchmark’s total trading turnover stood at SR4.21 billion ($1.12 billion), with 95 stocks advancing and 148 declined. 

The MSCI Tadawul Index also dipped, falling 0.24 points, or 0.02 percent, to 1,406.62. 

The Kingdom’s parallel market Nomu lost 139.91 points, or 0.52 percent, to close at 26,629.95, as 35 stocks advanced and 55 retreated. 

Thimar Development Holding Co. was the session’s top performer, rising 4.47 percent to SR41.10. 

Al-Jouf Agricultural Development Co. climbed 3.4 percent to SR45.64, and Power and Water Utility Co. for Jubail and Yanbu gained 2.41 percent to SR40.80. 

Alistithmar AREIC Diversified REIT Fund recorded the steepest drop, falling 4.50 percent to SR8.06. Retal Urban Development Co. declined 3.95 percent to SR13.14, while Zamil Industrial Investment Co. slipped 2.94 percent to SR37.66. 

In corporate announcements, Sama Healthy Water Factory Co. reported a 27.19 percent decline in first-half 2025 net profit to SR3.51 million, compared with SR4.82 million a year earlier. 

In a Tadawul statement, the company attributed the fall mainly to unrealized foreign exchange losses, though it said core operational profit rose 23 percent on the back of higher sales and improved margins following the integration of a new raw material production line. 

Its share price fell 1.29 percent to SR2.29.  

View United Real Estate Development Co. posted a 132.11 percent increase in net profit for the first half of the year, reaching SR9.97 million versus SR4.30 million in the same period last year. 

The company cited a 104.77 percent jump in revenue, driven by stronger performance across most business segments, alongside the positive impact of off-plan and land sales, according to a Tadawul statement. 

Its shares, however, slipped 0.95 percent to SR6.24. 

Al Rashid Industrial Co. registered a 22.88 percent rise in first-half net profit to SR21.47 million, compared with SR17.47 million in the previous year. 

The company said the increase reflected stronger top-line performance and a 21.78 percent jump in gross operating profit, highlighting improved efficiency. 

Its stock advanced 9.18 percent to SR53.50. 


PIF launches ‘azm’ program to equip Saudis for labor market needs

PIF launches ‘azm’ program to equip Saudis for labor market needs
Updated 20 August 2025
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PIF launches ‘azm’ program to equip Saudis for labor market needs

PIF launches ‘azm’ program to equip Saudis for labor market needs
  • Program aims to create pipeline of technically skilled Saudis to meet PIF’s investment needs
  • It will offer tailored training at competitive costs

JEDDAH: Saudi Arabia’s Public Investment Fund launched a strategic program designed to build skills, address labor market needs, and support economic diversification to boost national talent. 

The “azm” workforce development program was unveiled at a signing ceremony attended by Education Minister Yousef Al-Benyan and PIF Governor Yasir Al-Rumayyan, alongside partners from the Technical and Vocational Training Corp., Colleges of Excellence, Human Resources Development Fund, and Roshn Group. 

The launch underscores PIF’s role in advancing Vision 2030, Saudi Arabia’s plan to transition to a knowledge-based economy and reduce reliance on oil revenues. 

In a post on its official X account, PIF said it launched “the ‘azm’ program to empower national talents and equip them with the expertise and skills required by the labor market, thereby contributing to building a stronger and more diverse national economy, through a signing ceremony that included the program’s partners.” 

According to the sovereign wealth fund, azm aims to create a pipeline of technically skilled Saudis to meet the needs of PIF’s investments, portfolio companies, and ecosystem partners. It focuses on employer-driven skill development, with 80 percent of training based on hands-on, real-world applications. 

Under the program, PIF signed memoranda of understanding with TVTC and the Colleges of Excellence to manage and deliver training. The agreements cover curriculum development, contracting with local and international providers, overseeing registration and evaluation, and operating training facilities. 

“Future cooperation between Colleges of Excellence and the fund includes launching an academic entity under the azm program to serve as a specialized training body in developing technical and professional skills for Saudi youth,” the Colleges of Excellence posted on its X account.

The fund said azm will offer tailored training at competitive costs, apply rigorous learner selection, and provide financial incentives to cover tuition. Employers partnering with the program will gain access to a job-ready Saudi workforce trained to their specifications. 

PIF said azm leverages its existing experience in delivering training across portfolio companies and taps into a broad network of local and international providers. It also benefits from strong ties with accreditation bodies and access to government funding mechanisms for workforce development.


Saudi Arabia clears VistaJet as first foreign private jet operator 

Saudi Arabia clears VistaJet as first foreign private jet operator 
Updated 20 August 2025
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Saudi Arabia clears VistaJet as first foreign private jet operator 

Saudi Arabia clears VistaJet as first foreign private jet operator 

JEDDAH: Malta-based VistaJet is set to become the first foreign private jet operator allowed to fly domestic routes in Saudi Arabia, after regulators lifted cabotage restrictions to liberalize the Kingdom’s skies. 

VistaJet’s approval comes less than four months after Saudi regulators, on May 1, scrapped rules that had barred international charter operators from offering domestic services — a move aimed at stimulating competition, improving service quality, and expanding the private aviation segment. 

The decision, announced by the General Authority of Civil Aviation, marks a major step in liberalizing Saudi Arabia’s general aviation market as the Kingdom works to attract global investment and boost competitiveness under its Vision 2030 economic transformation plan. 

Awad Al-Sulami, executive vice president for economic policies and logistics services at GACA, said: “Authorizing VistaJet as the first international private jet operator for domestic operations in the Kingdom is a milestone in enhancing the general aviation market in Saudi Arabia.” 

He added: “This step will foster greater competition, stimulate sector growth, and raise the quality of services for private aviation customers in the Kingdom and across the region.” 

VistaJet, which operates under a Maltese air operator certificate and is part of Dubai-headquartered Vista Global Holding, welcomed the decision as a breakthrough for the sector. 

“We are delighted to be working with the Kingdom of Saudi Arabia and GACA, reinforcing our commitment to offering clients reliable, flexible and trusted flying solutions through our global and regional infrastructure,” said Mazen Obaid, president — Middle East at Vista. 

He added: “As a Saudi myself, I am extremely proud and excited for this new venture, and of all the opportunities that I know we can achieve together. We very much look forward to hiring many local experts and investing locally.” 

The move supports GACA’s General Aviation Roadmap under the National Transport and Logistics Strategy, which seeks to position Saudi Arabia as the Middle East’s top aviation hub by 2030 and a global logistics connector between Asia, Africa, and Europe.