The education sector is undergoing a transformation to improve the workforce readiness of the Kingdom’s graduates. In order to reduce dependence on oil and gas revenues, the government is targeting an ambitious economic diversification agenda, which involves the expansion of the private sector. Previously, the public sector provided local graduates with the bulk of employment opportunities. In recent years, however, the government has introduced a range of education and labour policies aimed at increasing the number of private sector employment opportunities and the quality of the local workforce. These policies include a quota determining the minimum number of Saudi nationals to be hired by private companies, with the exact figure depending on factors such as company size.
In order to meet private sector demand for candidates with analytical skills, leadership experience and self-confidence, an increasing number of Saudi students are receiving training in soft business skills such as team motivation, problem-solving, negotiation, project management and communication. Along these lines, the Ministry of Education (MoE) is spearheading efforts to modernise the national curricula at all levels to reflect the needs of the labour market, raise teaching standards, introduce digital teaching technologies and improve general education outcomes. Additionally, the government has introduced legislation aimed at encouraging greater private sector participation in education, such as enabling Saudi students to study in international schools and permitting foreign universities to open branches in the Kingdom.
Bridging The Skills Gap
The government has introduced several policies aimed at closing the skills gap. Its strategic development plan Vision 2030, launched in 2016, emphasises the importance of continuous learning and knowledge acquisition. It outlines the aim of building an education system aligned with market needs and creating economic opportunities that support diversification targets and job creation.
The government plans to achieve its educational objectives by expanding vocational training offerings, investing in scholarship opportunities for enrolment in programmes at international universities that align with key economic fields, and encouraging innovation and the adoption of advanced technologies. Furthermore, in September 2021 Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud introduced the Human Capability Development Programme aimed at upskilling nationals by providing lifelong learning opportunities, supporting a culture of entrepreneurship, and developing and activating policies to make the Kingdom’s education sector more competitive globally.
Saudi Arabia is also encouraging more women to join the workforce to increase the number of skilled Saudi graduates in the labour market. In recent years, there has been a significant increase in the number of women participating in the private sector. This has been driven by proactive government policies advocating for women’s economic empowerment, improved educational attainment among Saudi women and an increased demand for female workers in the private sector. Between 2018 and 2022, the labour force participation of Saudi women increased from 20% to 25%.
Workplace Development
In addition to introducing education reforms, the government has launched a policy to provide development opportunities in the workplace in collaboration with the MoE, the Technical and Vocational Training Corporation, and the Human Resources Development Fund. The initiative, launched in 2024, stipulates that companies with a workforce of 50 employees or more provide cooperative training opportunities for local students. The training should align with the student’s educational curriculum and job market requirements in order to equip students with the necessary skills to take up roles in the private workforce upon graduating. The policy is expected to support human capital development in line with labour market needs, thus empowering the national workforce.
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