Latest news with #AhmedAlRajhi
Arab News
12-07-2025
- Business
- Arab News
The battle for talent: Saudi Arabia's high-stakes bet on human capital
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. 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.' 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. 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.'
Gulf Business
07-07-2025
- Business
- Gulf Business
Work permits for expats: Saudi unveils new skill-based system
Image credit: Getty Images Saudi Arabia has announced a major update to its work permit system for expatriate workers, classifying permits into three main skill categories: high-skill, skilled, and basic. The decision, issued by Minister of Human Resources and Social Development Ahmed Al Rajhi, is designed to enhance workforce efficiency and attract global talent. Rise- The new classification system aims to align the skill levels of foreign workers with international standards, ensuring that expatriates meet job-specific qualifications. Authorities say the move will improve labor market operations, facilitate the transfer of global expertise, and support the Kingdom's innovation-driven economy, According to The ministry emphasised that the new system is part of a broader effort to build a more efficient, transparent, and attractive labor market in line with the country's Vision 2030 and the National Transformation Program. By improving verification mechanisms and better managing skill distribution across the workforce, the government hopes to boost productivity and support sustainable economic growth. Work permit reform aims to attract talent, boost innovation The updated work permit structure reflects the government's push to transform the labor market by bringing in high-skilled professionals and aligning expatriate job roles with actual qualifications. Officials say this shift will help modernise the economy and create an environment conducive to innovation and advanced business models. The guidance manual released by the ministry provides employers and workers with a detailed overview of how the classification system operates and how qualifications will be evaluated. Labor market sees strong growth in May In a related development, The report showed continued growth in the number of private sector employees, with the total workforce reaching 11,370,796 by the end of May. Of this total, 2,358,227 were Saudi nationals—comprising 1,386,904 men and 971,323 women—while non-Saudi workers numbered 9,012,569, including 8,641,249 males and 371,320 females. More Saudis entering the private sector The labor report also highlighted a net gain in local employment, with 30,881 Saudi nationals joining the private sector for the first time in May. Officials consider this a positive trend in support of Saudisation efforts and long-term workforce development. The NLO, established by Royal Decree in 2010, serves as the country's primary source for labor market data. It regularly publishes labor indicators and monthly reports, including Overview of the Saudi Labor Market in the Private Sector, to inform policy and guide decision-making.
Al Arabiya
07-07-2025
- Business
- Al Arabiya
Saudi Arabia launches new skill-based work permit system to attract global talent
Saudi Arabia has introduced a new classification system for expatriate work permits as part of its efforts to enhance labor market efficiency, attract international expertise, and support the Kingdom's Vision 2030 goals. The initiative, announced by Minister of Human Resources and Social Development Ahmed al-Rajhi, will categorize foreign workers into three tiers: high-skill, skilled, and basic, based on factors such as qualifications, experience, technical abilities, wage levels, and age, the Saudi Press Agency (SPA) reported. The system officially came into effect for incoming expatriates on July 1, while reclassification for current residents began on June 18, according to the ministry. The reform comes as Saudi Arabia accelerates development of its flagship giga-projects – including NEOM, the Red Sea Project, Qiddiya, and Diriyah Gate – which require a growing number of highly skilled professionals across sectors such as construction, engineering, tourism, and technology. According to SPA, the ministry stated that the new system is designed to 'enhance worker performance, attract global talent to transfer expertise and experience to the Saudi labor market, improve operational efficiency, benefit from international experience, and build an environment that supports innovation and the development of business models.' The reclassification will be implemented through the Qiwa platform and is aligned with the Unified Saudi Classification of Professions and Educational Levels. A unified digital assessment tool will ensure workers are evaluated consistently and matched to labor market needs. Authorities say this measure will help employers access better-qualified workers, reduce mismatches between skills and job requirements, and gradually lessen dependence on low-skilled labor. Encouraging labor market trends The announcement follows encouraging labor market trends in the Kingdom. The overall unemployment rate in Saudi Arabia dropped to 2.8 percent in the first quarter of 2025 – the lowest on record – while the unemployment rate for non-Saudis declined to 0.8 percent, according to figures from the General Authority for Statistics (GASTAT). This reflects rising demand in the private sector and targeted recruitment aligned with sector-specific workforce requirements. Expatriates continue to play a vital role in the Saudi economy, representing 15.7 million people – or 44.4 percent of the total population – in 2024. Among working-age expatriates (aged 15 to 64), 89.9 percent are employed in productive sectors, according to GASTAT data. The new classification also complements the Professional Verification Program, launched in 2021 and expanded in 2024, which verifies the qualifications of foreign workers prior to arrival in the Kingdom. The initiative currently covers 128 countries and is expected to expand to 160, with a focus on key sectors such as engineering, healthcare, and education. Employers have been urged to review their workforce composition and reclassify employees accordingly through the Qiwa platform. The ministry's guidance also allows workers to request reassessments if they meet criteria for higher classifications. A points-based evaluation system will provide flexibility by allowing experience to compensate for gaps in formal education. The ministry said the complete guidance manual, detailing evaluation procedures and compliance requirements, is available on its official website.
Zawya
07-07-2025
- Business
- Zawya
Saudi Arabia unveils new skill-based system for expatriate work permits
RIYADH — Saudi Minister of Human Resources and Social Development Ahmed Al-Rajhi has issued a decision classifying the work permits of expatriate workers into three main skill categories: high-skill, skilled, and basic. The classification of existing work permits and technical system upgrades began on June 18 for expatriates currently working in the Saudi labor market. The classification would take effect for incoming expatriate workers as of July 1. The ministry has issued a guidance manual outlining all the details of the decision, which is available on its official website. This decision is part of the ministry's broader efforts to foster a more attractive and efficient labor market, develop human capital, and enhance the business environment, contributing to achieving the objectives of Saudi Vision 2030 and the National Transformation Program. The measure aims to enhance worker performance, attract global talent to transfer expertise and experience to the Saudi labor market, improve operational efficiency, benefit from international experience, and build an environment that supports innovation and the development of business models. The decision will improve verification mechanisms and enable better management of the skill-level distribution of expatriate workers in the labor market by ensuring that workers possess the required skills and qualifications for their job roles, in line with best international practices. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
Arab News
06-07-2025
- Business
- Arab News
Saudi Arabia rolls out skill-based work permits to attract global talent
JEDDAH: Expatriates seeking employment in Saudi Arabia will now be assessed under a newly introduced skill-based work permit system as the Kingdom moves to streamline its labor market and attract global talent. The decision, issued by Minister of Human Resources and Social Development Ahmed Al-Rajhi, classifies foreign workers into three categories — high-skill, skilled, and basic — based on qualifications, experience, technical ability, wage level, and age. The system took effect for new incoming workers on July 1, while the reclassification of existing expatriates began on June 18, according to the Saudi Press Agency and a ministerial notice. The Kingdom's demand for skilled professionals is growing amid a wave of giga-projects, including NEOM, the Red Sea Project, Qiddiya, and Diriyah Gate, which span sectors ranging from construction and design to technology and tourism. These developments require a high concentration of specialized foreign talent to meet tight delivery timelines and global standards. The move is part of a broader strategy to enhance productivity, mitigate skill mismatches, and support Saudi Arabia's long-term economic objectives under Vision 2030. 'The measure aims to enhance worker performance, attract global talent to transfer expertise and experience to the Saudi labor market, improve operational efficiency, benefit from international experience, and build an environment that supports innovation and the development of business models,' the SPA report stated. Designed to match worker capabilities with market needs, the reform introduces a unified digital evaluation mechanism via the Qiwa platform, aligned with the Unified Saudi Classification of Professions and Educational Levels. The new classification is expected to enhance transparency in workforce planning and help businesses access better-qualified workers while encouraging a gradual shift away from reliance on low-skilled labor. The move comes amid improving employment indicators. The overall unemployment rate, which includes both Saudis and expatriates, fell to a record low of 2.8 percent in the first quarter of 2025, a 0.7 percentage point decrease from the previous quarter, according to the General Authority for Statistics. Among non-Saudis, the rate declined to 0.8 percent, reflecting strong private sector demand and targeted recruitment aligned with workforce needs. Expatriates remain a critical part of the labor market, accounting for 15.7 million people, or 44.4 percent of the total population, according to GASTAT data for 2024. Among the working-age group — 15 to 64 years — 89.9 percent of non-Saudis fall within this range, underscoring their role in the Kingdom's productive sectors. The reclassification also ties into the Professional Verification Program, launched in 2021 and expanded in 2024. The initiative, currently covering 128 countries and set to expand to 160, verifies the educational and professional credentials of foreign workers in key fields, such as engineering, healthcare, and education, before they enter the Kingdom. Alongside labor market reforms, the government is also monitoring the financial outflows tied to foreign workers. In February alone, remittances by expatriates in Saudi Arabia totaled SR12.78 billion ($3.41 billion), according to the Saudi Central Bank, reflecting the continued economic contribution of foreign workers to the Kingdom's economy. Employers are urged to review their workforce composition and reclassify staff through Qiwa, while workers may submit reassessment requests if they meet the criteria for higher categories, according to the ministry's guidance manual. A points-based system will ensure flexibility by allowing strengths in certain areas, such as hands-on experience, to offset limitations in formal education. The ministry stated that the full guidance manual on the work permit classification system is available on its official website, detailing implementation steps, compliance rules, and evaluation procedures.
