Saudi Arabia’s 96th National Day comes at a time when the Kingdom’s economic transformation is increasingly being measured through more than oil output.
- Saudi Arabia’s economy moves beyond oil
- National talent becomes central to Vision 2030
- New industries are creating new career paths
- Saudisation is becoming more skills-focused
- 2026 puts artificial intelligence at the centre
- From economic diversification to workforce transformation
- What Saudi Arabia’s next phase means for employers
Since the launch of Vision 2030 in 2016, Saudi Arabia has expanded its focus to private-sector growth, industrial development, technology, tourism and national talent.
The shift is also changing the labour market. Employers are facing new localisation requirements, while demand is growing for skills linked to technology, tourism, engineering, finance, healthcare and other emerging sectors.
Saudi Arabia’s economy moves beyond oil
Saudi Arabia’s economic diversification has accelerated since Vision 2030 set out its long-term development agenda.
The Kingdom’s 2025 Vision 2030 annual report shows that real non-oil GDP reached $892 billion in 2025. That compares with a baseline of $598 billion. The private sector’s contribution to GDP also rose to 51%, from a 44% baseline.
The expansion has spread across tourism, technology, logistics, manufacturing, mining, entertainment and financial services.
Special economic zones, industrial cities and investment programmes are also supporting the development of new economic activity.
As a result, the Kingdom’s workforce needs are changing alongside its economic structure.
National talent becomes central to Vision 2030
Saudi Arabia’s workforce strategy increasingly links economic growth with the development of national skills.
The Ministry of Human Resources and Social Development reported that more than 30 Saudisation decisions covering more than 600 specialised roles were issued during 2025.
At the same time, the number of Saudi nationals employed in the private sector reached 2.5 million, according to the ministry. Its national Waad training campaign had also delivered more than 2 million training opportunities.
These measures are changing the conversation around Saudisation.
The focus is moving beyond employment numbers towards skills, professional experience and participation in sectors that are expanding under Vision 2030.
HRSD has also introduced sector-based skills initiatives. These bring employers, government bodies and training institutions closer together to align training with labour-market needs.
That approach matters as companies expand into industries that were smaller parts of the Saudi economy a decade ago.
New industries are creating new career paths
The changing economy is also opening career paths in sectors such as tourism, hospitality, engineering and sustainability.
Raed Albasseet, Group Chief Environment and Sustainability Officer at Red Sea Global, described this shift through his own career.
“I did not grow up imagining a career spent between coral nurseries and construction sites, balancing marine science against master planning,” Albasseet said.
“But that is what Vision 2030 has asked of people like me, and it is the most meaningful work I have done.”
His comments highlight a wider change in the type of careers emerging in the Kingdom.
Large tourism and development projects require skills across engineering, environmental science, hospitality, construction and project management. In turn, this creates demand for training that connects Saudi nationals with these emerging fields.
Saudisation is becoming more skills-focused
The labour-market shift is also visible in the expansion of localisation policies.
HRSD has expanded Saudisation measures across hundreds of professions. Recent decisions have targeted areas including engineering, procurement, accounting, pharmacy and dentistry.
For employers, this means workforce planning must increasingly account for both regulatory requirements and the availability of qualified Saudi talent.
Training therefore becomes part of the business response.
HRSD’s Skills Accelerator, for example, was designed to support more than 300,000 Saudi private-sector employees through training programmes across key sectors. The programme covers areas including healthcare, finance, energy, tourism and transport.
The broader direction is clear: localisation is being linked more closely with building capabilities for a changing economy.
2026 puts artificial intelligence at the centre
Technology is now adding another layer to the workforce transition.
Saudi Arabia designated 2026 as the Year of Artificial Intelligence after the Cabinet approved the initiative in March. The Saudi Data and Artificial Intelligence Authority said the programme aims to raise awareness of AI and support its adoption across the Kingdom.
The move builds on the Kingdom’s National Strategy for Data and AI, approved in 2020.
It also places greater emphasis on the skills required for an economy where AI and digital technologies are becoming part of business operations.
For employers, the implication extends beyond hiring AI specialists.
Companies will also need employees who can work with new digital tools, understand data and adapt as technology changes job requirements.
From economic diversification to workforce transformation
Saudi Arabia’s transformation is therefore taking place across two connected fronts.
The first is economic. The Kingdom is building sectors beyond hydrocarbons and increasing the role of private businesses.
The second is human capital. Employers, training institutions and government programmes are working to prepare Saudi nationals for the jobs created by that economic shift.
Mohammed Al-Fraih, CEO of STC Bank, described the broader transition as a continuation of the ambition behind the Kingdom’s development journey.
“Today, we live in a prosperous era … in which great ambitions have become reality, the Saudi people have become at the heart of transformation, and the Kingdom has established its presence through its achievements and vision for the future,” Al-Fraih said.
For businesses, the next phase will depend not only on investment in new industries, but also on whether the labour market can supply the skills those industries require.
That makes talent development an economic issue as much as an HR issue.
What Saudi Arabia’s next phase means for employers
The direction of Saudi Arabia’s economic transformation is increasingly visible in its labour-market policies.
Companies operating in the Kingdom will need to manage localisation requirements while building pipelines for specialised roles.
They will also need to invest in training as sectors such as AI, tourism, technology, engineering and sustainability expand.
At the same time, Saudi professionals are entering a labour market with a wider range of industries and career paths than existed under the Kingdom’s traditional economic model.
Saudi Arabia’s 96th National Day therefore comes at a point where the country’s next phase of growth is closely tied to its people.
The transformation from an oil-led economy to a more diversified economy is still underway. But its workforce dimension is becoming increasingly clear: the Kingdom is not only building new industries. It is also building the talent base needed to operate them.
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