Saudi Arabia has embarked on an ambitious journey to diversify its economy and reduce its dependence on oil, which has been the country’s main source of revenue for decades. This initiative, part of the Vision 2030 plan announced in 2016, is a national strategy aimed at promoting sustainable growth, innovation and long-term prosperity. Large-scale construction projects are at the center of this vision, as they aim to transform the country’s infrastructure, boost economic growth, attract tourism, and position Saudi Arabia as a global business and cultural hub of interest to expats.
What mega-projects do we know about in Saudi Arabia? NEOM, The Red Sea Project, Qiddiya, King Salman Park are just the biggest ones. They have billions of dollars in investments and an incredible scale. Their implementation will activate the economy, labor market and all spheres of life in the country, as no one will be left behind.
Changes in the Saudi Arabian Labor Market
Today, Saudi Arabia is the economic center of the Middle East. The strategic shift from a purely oil-dependent economy to a more diversified, industrialized future is crucial and is changing the economic and social landscape of the kingdom. According to the latest data, Saudi Arabia’s GDP per capita is around $23,000, making it one of the leading economies in the region. This indicator, while impressive, still shows a lag behind other developed countries, which emphasizes the need for further economic diversification and development.
Highly skilled professionals in fields such as finance, engineering, and information technology can expect an average annual salary of $50,000 to $90,000. Meanwhile, low-skilled workers, especially in construction and consumer services, typically earn between $5,000 and $10,000 per year. Expats make up a significant portion of the Saudi workforce, especially in sectors such as construction, hospitality, and retail. You can learn more about this on platforms with verified vacancies such as Layboard.
According to the latest estimates, expats make up almost 30% of the total population and constitute the majority in labor-intensive sectors, they can count on vacancies of this type https://layboard.in/vacancies/jobs-in-saudi-arabia/speciality/handyman, while Saudi nationals are more represented in government positions and increasingly in the private sector.
Future Prospects for Saudi Arabia’s Mega-Projects and Construction Growth
The scale and ambition of the Vision 2030 projects promise long-term economic and social benefits for Saudi Arabia, provided they are implemented effectively.
One of the key expected outcomes is an increase in foreign direct investment (FDI), as international companies are encouraged to join and benefit from Saudi Arabia’s modernization efforts. This capital inflow not only stimulates construction projects, but also supports the development of industries that will sustain the economy after the projects are completed.
In the long term, Saudi Arabia aims to position itself as a leading tourist and business center comparable to global cities such as Dubai. Large-scale developments are designed to enhance the country’s global reputation, attract visitors from around the world, and provide residents with a higher quality of life. By 2030, non-oil sectors are expected to account for a much larger share of GDP, marking a significant shift away from the oil-dependent past.
Another expected significant effect of economic transformation is the creation of jobs in emerging industries. As Saudi Arabia attracts foreign investment for large-scale projects such as NEOM, The Red Sea Project, and Qiddiya, a wide range of employment opportunities are expected to open up in the technology, construction, environmental sciences, and tourism management sectors. This will provide Saudi nationals with new, sustainable career paths, as well as attract qualified foreigners to fill specialized roles requiring advanced expertise.
The growing emphasis on sustainable development, for example through NEOM’s zero-carbon initiatives, will also bring Saudi Arabia closer to global environmental standards and position it as a leader in green development in the Middle East.
In the long run, these developments are likely to increase GDP per capita, improve living standards, and foster a competitive knowledge-based economy. In addition, reducing dependence on oil will make Saudi Arabia’s economy more resilient to external shocks, increase investor confidence, and strengthen the country’s reputation as a business center.
A Glance at Saudi Arabia 10 Years Ago
Looking back a decade, Saudi Arabia was deeply reliant on oil exports, with oil accounting for about 80% of government revenue. The economy was heavily centralized, with limited opportunities outside the oil sector, which resulted in a reliance on foreign labor in most industries. Back then, the private sector remained underdeveloped, and many young Saudis gravitated towards secure government jobs, which offered stability but limited growth potential.
At the time, infrastructure was not as developed, and sectors such as tourism and entertainment were in their infancy. Social and cultural reforms had not yet taken hold, and public spaces or industries like cinema and tourism were restricted. In comparison, today’s Saudi Arabia has seen an opening up in these sectors, with significant investment in cultural and social infrastructure, allowing for greater societal engagement and quality of life improvements.
The shift from a purely oil-based economy to a broader industrial and knowledge-based economy has brought Saudi Arabia into a new era. Although challenges remain, especially in balancing modernization with cultural values, the country’s transition from oil to industrialization marks a historic transformation that holds the promise of sustainable development, enhanced economic stability, and a brighter future for its citizens.
The shift in emphasis from oil production to innovation, construction, and tourism is helping Saudi Arabia to take a leading position among the Middle East countries. In the long run, it will become a leader among the countries of the world. This is what the Kingdom is striving for.
This economic diversification affects every citizen of the country personally. The level of social security, wages, and employment prospects are growing.
