Saudi Arabia’s clean hydrogen ambitions could create new employment opportunities as the Kingdom develops its energy transition, according to a study by Cian Mulligan and Sebastian Sons. However, limited local training capacity could keep skilled expatriate workers in demand during the sector’s early development.
The study, titled Energy Diversification and a Shifting Labor Market in Saudi Arabia: Green Jobs and Education Potential in the Development of a Clean Hydrogen Sector, examines the links between clean hydrogen, Saudization and education reform.
Hydrogen sector could create new jobs
Saudi Arabia aims to diversify its oil dependent economy under Vision 2030. At the same time, the Kingdom is seeking to become a major producer and exporter of clean hydrogen.
The country also aims to increase renewable energy to 50% of its domestic electricity mix by 2030. As a result, hydrogen could support employment across several parts of the energy sector.
These areas include renewable energy, electrolysis, carbon capture, transport and storage. They also include research and development, operations and maintenance.
However, the study says job creation will depend on how Saudi Arabia develops its hydrogen economy. Domestic use and an export focused model could create different employment needs.
Skills gap could affect Saudization
The study highlights a potential challenge for Saudi Arabia’s workforce localisation agenda. The Kingdom has increased the participation of Saudi nationals in the private sector while reserving some occupations for citizens.
Yet expatriates still make up a large share of employment, particularly in lower skilled and technical roles.
The researchers analysed Q2 2023 labour force data and found differences between Saudi and expatriate workers. Around 43% of Saudi workers held a university degree, compared with 25% of non Saudi employees.
Saudi workers were also more concentrated in higher skilled occupations. However, some hydrogen projects will require large numbers of technical and operational workers.
Hydrogen projects need technical workers
Renewable energy projects could require machine operators, elementary workers and technicians. Meanwhile, electrolyser projects could create construction jobs for metal workers, assemblers and engineers.
Legal professionals could also find opportunities during project development. However, permanent operational roles are expected to be much fewer than construction jobs.
Carbon capture projects could follow a similar pattern. Construction may create demand for workers, while long term operations could require machinery installers, maintenance workers and repair specialists.
Therefore, expanding Saudization alone may not fully address the sector’s future workforce needs, according to the study.
Education must match hydrogen jobs
The study argues that Saudi Arabia needs specialised technical and vocational pathways alongside university programmes. These pathways could help prepare Saudi nationals for practical roles within emerging energy industries.
Several Saudi institutions have already started developing expertise in renewable energy and hydrogen.
King Saud University offers a renewable energy master’s programme with a dedicated hydrogen energy track. King Fahd University of Petroleum and Minerals has also established an interdisciplinary research centre focused on hydrogen and energy storage.
Other universities and research institutions are developing capabilities in renewable energy and power systems.
Nevertheless, the study identifies gaps in coordination and curriculum development. It also points to limited training for trainers and a need for more multidisciplinary education.
TVET could support workforce development
Technical and vocational education and training could become an important part of Saudi Arabia’s hydrogen workforce strategy.
The study notes that hydrogen education remains fragmented. Much of the existing focus is also centred on engineering rather than the wider range of skills required by the industry.
At the same time, cultural preferences for academic degrees over vocational qualifications remain a challenge. Saudi Arabia has continued efforts to increase participation in technical and vocational education.
The researchers therefore see scope for closer cooperation between universities, energy companies and international education and research institutions.
Such cooperation could include scholarships, academic exchanges, vocational programmes and reskilling initiatives.
Expatriate expertise likely to remain in demand
With local training capacity still developing, the study expects Saudi Arabia to continue recruiting skilled expatriate workers during the early stages of the hydrogen industry.
Demand could include hydrogen engineering, technology maintenance, production and training. Specialised technical services may also require international expertise.
For employers, the findings point to the importance of aligning workforce planning with the skills needed across different stages of hydrogen projects.
Over time, targeted education and skills development could help Saudi Arabia build a larger national workforce for the emerging industry. Without sufficient investment in local skills, however, specialised hydrogen roles may continue to depend heavily on international talent.
