Saudi youth key to the Kingdom's growth
https://arab.news/gn5hr
By the year 2100, many of the world's major economies are expected to have lost 20 percent to 50 percent of their population due to a growing pattern of aging. Japan, for instance, is already facing the impact of this transition, as it is home to one of the highest numbers of aging citizens globally. China is facing a similar challenge. The global population growth rate has dropped from 1.7 percent in 1950 to 0.8 percent in 2025. As such, experts predict that, by 2084, international population growth will stop completely and even turn negative by the end of the century.
Amid these worrying trends, Saudi Arabia stands out. With a young and growing population, the Kingdom is on a path of economic prosperity, youthful ambition and societal advancement. Saudi Arabia's population reached 35.3 million in mid-2024, with Saudi nationals accounting for more than 55 percent of the total. An annual growth rate of approximately 2.52 percent since 2023 has been driven by both a natural increase and immigration. The average age among Saudis is 26.6 years, compared to the global average of 33.6 years.
High fertility rates in the Kingdom have led to natural population growth at a time of rapid global aging. In 2024, Saudi women had an average of 2.7 children, well above the global average of 2.3. Despite the overall decrease in fertility rates globally, the outlook remains positive for Saudi Arabia as it continues to boast a growing and vibrant young population.
The Kingdom is on a path of economic prosperity, youthful ambition and societal advancement
Zaid M. Belbagi
This growth is also deeply rooted in cultural norms. It is a society where large families and children are highly valued. Moreover, the relatively early age of marriage in the Kingdom has also influenced high fertility rates and mitigated the risk of a majority aging population. According to a survey by the Saudi General Authority for Statistics, most Saudi men prefer to marry at about 25.3 years of age and women at 20.4 years.
This youth-led demographic is an asset for Saudi Arabia, holding great promise for the Kingdom's development and economic goals. Its youth's energy and ambition are key to building the nation of tomorrow. The government recognizes this potential, as Crown Prince Mohammed bin Salman wrote when launching Vision 2030: 'Our real wealth lies in the ambition of our people and the potential of our younger generation. They are our nation's pride and the architects of our future.'
A young population directly translates into an expanding and productive labor force. This is already significantly boosting productivity and driving economic growth in the Kingdom. Saudi Arabia is showing positive indicators in this regard. As of 2024, the labor force participation rate was 66.4 percent and the unemployment rate had dropped to 7 percent. As such, the Kingdom reached its Vision 2030 unemployment target six years ahead of schedule. To cater to this young population, the job market is becoming increasingly dynamic and generating a higher number and more creative range of employment opportunities. More than 364,000 Saudi citizens entered the workforce for the first time last year.
A major asset of the Saudi youth is its entrepreneurial spirit. The Kingdom has seen a 200 percent surge in startups and innovative enterprises across various sectors, from artificial intelligence and fintech to food and beverage. This young demographic brings fresh ideas, digital savviness and a strong risk appetite, which are key ingredients for building a vibrant and competitive entrepreneurial ecosystem.
This trend was confirmed when the Kingdom was last week named Startup Ecosystem Country of the Year by startup research platform StartupBlink. This growth is supported by national initiatives like Saudi Unicorns, Monsha'at and Fintech Saudi, all of which aim to empower and guide young Saudis with innovative business ideas. Instead of relying solely on traditional employment, many young people are now creating jobs themselves, transforming the Kingdom's demographic advantage into sustainable economic opportunities.
The young population is increasingly cosmopolitan, aware of global trends and receptive to societal change
Zaid M. Belbagi
As Saudi Arabia is turning into a country of the youth, for the youth and led by the youth, the biggest changes are those of mindset and vision. The young population is increasingly cosmopolitan, aware of global trends and receptive to societal change. The expansion of sectors such as entertainment, music and cinema is indicative of this transition. The Saudi youth is seeking cultural and recreational experiences that have driven the demand for concerts, film festivals and youth summits.
As such, Saudi Arabia established the General Entertainment Authority and allocated more than $2 billion to support its development. Under the leadership of the crown prince, Vision 2030 has successfully captured the youth's potential to lead this change.
It is clear that the youth-led Saudi demographic is driving economic activity and cultural change in the Kingdom. The government must consider this shift in its policies. Prioritizing world-class education, training and skill-building is essential, including building partnerships with international universities. Sectors like advertising, sports, entertainment and culture will also become increasingly important, as they align with the interests and energy of a rising young population. Investing in youth is key for the future of Saudi Arabia, as the youth of today is the leadership of tomorrow.
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