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Record lows in Saudi unemployment drive Vision 2030 goals 

Saudi Arabia’s success in lowering unemployment stems from a range of labor reforms and national transformation initiatives. (SPA)
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Updated 23 August 2025
MOHAMMED AL-KINANI
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Record lows in Saudi unemployment drive Vision 2030 goals 

  • Saudi Arabia has revised its unemployment target for nationals to 5 percent by 2030
Updated 23 August 2025
MOHAMMED AL-KINANI

JEDDAH: Saudi Arabia’s labor market is transforming, with unemployment among the Kingdom’s nationals hitting record lows and the nation raising its Vision 2030 employment targets to reflect this accelerated progress.

Minister of Human Resources and Social Development Ahmed Al-Rajhi announced during the Budget Forum 2024 that Saudi Arabia has revised its unemployment target for nationals to 5 percent by 2030, down from the previous goal of 7 percent.

“The unemployment rate among Saudis was 12.8 percent in 2018, and today it has dropped to 7.1 percent. The Vision 2030 target was to reduce Saudi unemployment to 7 percent by 2030, a milestone we have achieved six years ahead of schedule,” Al-Rajhi said at the time.

He added that for this reason, Crown Prince Mohammed bin Salman “directed a review of that target, and now we have a new ambition: to reduce the unemployment rate among Saudis to 5 percent by 2030.”

FASTFACT

 

A new phase of the strategy has been submitted for approval, aiming to elevate the Saudi labor market to global competitiveness.

According to the latest data from the General Authority for Statistics, known as GASTAT, unemployment among Saudi nationals fell further to 6.3 percent in the first quarter of 2025 — the lowest level on record.

Labor force participation among Saudis rose to 51.3 percent, with notable gains among women and core working-age citizens.

Women’s economic participation surpasses Vision 2030 target

A significant achievement highlighted by Al-Rajhi was the surge in the participation of Saudi women in the workforce, adding: “The economic participation rate of females has reached 35 percent, exceeding the Vision 2030 target of 30 percent by 2030.”

GASTAT’s first quarter 2025 data supports this trajectory, showing a female labor force participation rate of 36.3 percent, while the unemployment rate among Saudi women declined to 10.5 percent. 

Among young Saudi women aged 15 to 24, participation rose to 18.4 percent, and the employment-to-population ratio climbed to 14.6 percent.




Youssef Saidi, a research fellow at the Economic Research Forum and member of the Saudi Economic Association. (Supplied)

Youssef Saidi, a research fellow at the Economic Research Forum and member of the Saudi Economic Association, told Arab News: “To sustain and enhance this progress, it is crucial to implement supportive policies that encourage women’s entrepreneurship and provide access to resources and training opportunities.”

He added that fostering collaboration between the government and private sectors can create a robust ecosystem that supports female entrepreneurs, addressing barriers and promoting sustainable development.

Youth employment progresses, challenges remain

While youth unemployment is declining, participation rates are mixed. GASTAT data shows the unemployment rate among Saudi males aged 15 to 24 fell to 11.6 percent, but labor force participation dropped to 33 percent, and their employment-to-population ratio declined to 29.2 percent.

Speaking to Arab News, Mansoor Ahmed, an independent economic adviser, said: “Despite overall progress, unemployment among young Saudis aged 15–24 remains higher than the national average.” 

He added that addressing this issue requires targeted policies and tailored employment programs to better integrate youth into the labor market.

Vision 2030 reforms driving new opportunities

Saudi Arabia’s success in lowering unemployment stems from a range of labor reforms and national transformation initiatives. Ahmed said: “This achievement has been underpinned by robust economic policies, strategic government initiatives, and sustained labor market reforms.”

He cited key enablers such as the Human Capability Development Program, the sharp decline in female unemployment — from 31.7 percent in 2018 to 10.5 percent in 2025 — and giga-projects such as NEOM, Qiddiya, Red Sea Project, and Diriyah Gate, which are entering high-employment phases. 

Sector-specific Saudization policies in retail, consulting, and aviation, as well as legal services, and technology, have also played a role.

Reflecting on the main challenges facing the country, Ahmed flagged youth employment volatility, noting that “despite overall progress, unemployment among young Saudis, aged 15–24, remains higher than the national average.”

He also highlighted public-private sector wage disparities, stating that many private sector positions continue to offer lower wages and benefits compared to public sector roles, dampening interest among some Saudi job seekers. “Narrowing this gap will be essential to sustain private sector employment growth,” he said.

Education–labor alignment key to 5 percent goal

The Ministry of Human Resources and Social Development has implemented 84 percent of the Labor Market Strategy over the past four years, creating 300,000 jobs in specialized professions such as engineering, accounting, pharmacy, and radiology.

One standout initiative is the Waad National Training Program, launched in partnership with the private sector. It has provided over 1.3 million training opportunities, equipping Saudis with practical skills aligned to labor market needs.

This initiative exemplifies how targeted training and public-private collaboration drive employment outcomes, helping thousands transition into specialized and emerging sectors.

To support these changes, the ministry has also modernized labor regulations, amending more than 38 articles to enhance workforce flexibility and protection. New insurance products, including domestic worker and labor market insurance, have been introduced to safeguard employers and employees.

“Regarding beneficiary satisfaction: previously, the ministry in the labor sector received 60,000 visitors to its branches across the Kingdom each month,” Al-Rajhi said. He added that after launching automation services, this number has dropped to 3,000.

GASTAT data shows 75.8 percent of job seekers approached employers directly, 74.6 percent used the national employment platform Jadarat, and 64.5 percent updated their resumes on professional social media — reflecting a shift toward digital engagement and more efficient job searches.

Al-Rajhi noted that a new phase of the strategy has been submitted for approval, aiming to elevate the Saudi labor market to global competitiveness.

Future workforce focus

Ahmed emphasized that further progress requires a holistic approach. He said that encouraging greater private sector employment of Saudis beyond Saudization policies demands a comprehensive strategy.

“A particularly critical factor will be improving the alignment between education outcomes and labor market requirements, ensuring that graduates possess the skills and competencies demanded by the private sector,” he said.




Mansoor Ahmed, an independent economic advisor. (Supplied)

He added that by pursuing this integrated approach, saying: “The Kingdom can foster a virtuous cycle where private firms are driven to hire, develop, and retain more Saudi nationals.”

Saidi echoed the need for stronger integration between education and labor market outcomes, stressing the importance of incorporating emerging technologies into curricula so students acquire relevant future skills.

He added: “Collaboration with industry leaders can provide practical training opportunities, bridging the gap between education and employment and ensuring that graduates are well-prepared for the demands of the modern workforce.”

The economist emphasized the need for a long-term cultural shift in education to promote continuous learning and adaptability. “This can be achieved by incorporating entrepreneurial education and sustainability topics into the curricula, promoting awareness and skills necessary for the evolving economic landscape,” he added.

Under this direction, the country has recently announced it will integrate artificial intelligence education throughout its public school system beginning in the coming academic year.

High-potential sectors for Saudi workers

Commenting on sectors with strong potential to absorb more Saudi workers soon, Ahmed pointed to construction and infrastructure; healthcare — which he said will require more than 30,000 new hospital beds by 2030; and tourism and hospitality, especially in customer-facing and management roles.

iInformation and communication technology; artificial intelligence; and retail were also highlighted, as well as logistics; renewable energy; and environmental technologies.

These sectors, he added, are driven by Vision 2030 priorities, economic diversification efforts, and proactive government initiatives. To align with this evolving landscape, he noted, Saudi Arabia must strengthen its focus on evidence-based research, innovation, and targeted workforce development.

“This transition aims to address the persistent mismatch between graduates’ qualifications and labor market requirements, ensuring the national workforce is equipped with the skills and expertise needed to thrive in a dynamic, diversified economy,” Ahmed said.
 

Topics: unemployment Saudi Vision 2030

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Saudi Arabia pulls in most of Partners for Growth $450m capital push

Updated 07 February 2026
Nour El-Shaeri
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Saudi Arabia pulls in most of Partners for Growth $450m capital push

  • Global private credit fund leans into region’s largest market for growth-stage technology financing
Updated 07 February 2026
Nour El-Shaeri

RIYADH: Saudi Arabia has captured the vast majority of Partners for Growth’s capital deployed in the Gulf Cooperation Council, as the global private credit fund leans into what it sees as the region’s largest market for growth-stage technology financing. 

The San Francisco-based firm has deployed about $450 million in commitments in the GCC, and “the vast majority of that is in Saudi,” said Armineh Baghoomian, managing director at the firm who also serves as head of Europe, the Middle East and Africa and co-head of global fintech. 

The company was one of the earliest lenders to Saudi fintech unicorn Tabby, and it’s clear the Kingdom is providing fertile territory for ongoing investments.

“We don’t target a specific country because of some other mandate. It’s just a larger market in the region, so in the types of deals we’re doing, it ends up weighing heavily to Saudi Arabia,” Baghoomian said. 

Partners for Growth, which Baghoomian described as a global private credit fund focused on “growth debt solutions,” lends to emerging tech and innovation companies, particularly those that struggle to access traditional credit. 

“We’re going into our 22nd year,” she said, tracing the strategy back to its roots in a Bay Area investment bank debt practice in the mid-1980s. 

Today, the firm lends globally, she said, deploying capital where it sees fit across markets including Australia, New Zealand, and Southeast Asia, as well as Latin America and the GCC, where it has been active for about six years. 

Shariah structures dominate PFG’s Gulf deals 

In the Gulf, the firm’s structures are often shaped by local expectations. “Most of the deals we’ve done in the region are Shariah-compliant,” Baghoomian said. 

“In terms of dollars we’ve deployed, they’re Shariah-structured,” she added. 

“Usually it’s the entrepreneur who requires that, or requests it, and we’re happy to structure it,” Baghoomian said, adding that the firm also views Shariah structures as “a better security position in certain regions.” 

Growth debt steps in where banks cannot 

Baghoomian framed growth debt as a practical complement to equity for companies that have moved beyond the earliest stage but are not yet “bankable.” 

She said: “The lower-cost bank type facilities don’t exist. There’s that gap.”

Baghoomian added that companies want to grow, “but they don’t want to keep selling big chunks of equity. That implies giving up control and ownership.” 

For businesses with the fundamentals private credit providers look for, she said, debt can extend runway while limiting dilution. 

“As long as they have predictable revenue, clear unit economics, and the right assets that can be financed, this is a nice solution to continue their path,” she added. 

That role becomes more pronounced as equity becomes harder to raise at later stages, Baghoomian believes. 

She pointed to a gap that “might be widening” around “series B-plus” fundraising, as later-stage investors become “more discriminating” about which deals they back. 

Asset-heavy fintechs cannot scale on equity alone 

For asset-heavy technology businesses, Baghoomian argued, debt is not just an option but a necessity. 

She pointed to buy-now-pay-later platform Tabby as an example of a model built on funding working capital at scale. 

“Tabby is an asset-heavy business,” she said. “They’re providing installment plans to consumers, but they still need to pay the merchant on day one. That’s capital-intensive. You need a lot of cash to do that.” 

Equity alone, she added, would be structurally inefficient. “You would not want to just raise equity. The founders, employees, everyone would own nothing and lose a lot of control.” 

We don’t target a specific country because of some other mandate. It’s just a larger market in the region, so in the types of deals we’re doing, it ends up weighing heavily to Saudi Arabia.

Armineh Baghoomian, PFG managing director and head of Europe, the Middle East and Africa and co-head of global fintech

Baghoomian said those dynamics are common across other asset-intensive models, including lending platforms and businesses that trade in large inventories such as vehicles or property. “Those are businesses that inherently end up having to raise quite a bit of credit,” she said. Partners for Growth’s relationship with Tabby also reflects how early the firm can deploy capital when the structure is asset-backed. “We started with Tabby with $10 million after their seed round, and then we grew, and we continue to be a lender to them,” Baghoomian said. 

“On the asset-backed side, we can go in quite early,” she said. “Most of the fintechs we work with are very early stage, post-seed, and then we’ll grow with them for as long as possible.” 

As the market for private credit expands in the Gulf, Baghoomian emphasized discipline — both for lenders and borrowers. 

For investors assessing startups seeking debt, she said the key is revenue quality and predictability, not just topline growth. “Revenue is one thing, but how predictable is it? How consistent is it? Is it growing?” she said. “This credit is not permanent capital. You have to pay it back. There’s a servicing element to it.” 

Her advice to founders was more blunt: stress-test the downside before taking leverage. 

“You have to do a stress test and ask: if growth slows by 30 to 40 percent, can I still service the debt? Can I still pay back what I’ve taken?” she said. 

Baghoomian warned against chasing the biggest facility on offer. “Sometimes companies compete on how much a lender is providing them,” she said. “We try to teach founders: take as much as you need, but not as much as you can. You have to pay that back.” 

Partners for Growth positions itself as an alternative to banks not only because many growth-stage companies cannot access bank financing, but because it can tailor structures to each business. 

HIGHLIGHTS

• Partners for Growth positions itself as an alternative to banks not only because many growth-stage companies cannot access bank financing, but because it can tailor structures to each business.

• The firm lends globally deploying capital where it sees fit across markets including Australia, New Zealand, and Southeast Asia, as well as Latin America and the GCC, where it has been active for about six years.

One of Partners for Growth’s differentiators, Baghoomian said, is how bespoke its financing is compared with bank products. 

“These facilities are very bespoke. They’re custom to each company and how they need to use the money,” she said, adding that the fund is not offering founders a rigid menu of standardized options. 

“No two deals of ours look alike,” she said, framing that flexibility as especially important at the growth stage, when business needs can shift quickly. 

That customization, she added, extends beyond signing. Baghoomian said the firm aims to structure facilities so companies can actually deploy capital without being constrained, adding: “We don’t want to handcuff you. We don’t want to constrain you in any way.” 

As a company evolves, she said the financing can evolve too, because what works on day one often won’t fit nine months later. 

“We’ll revise structures,” she said, describing flexibility as core to how private credit can serve fast-moving tech businesses. 

She added that a global lender can also bring operating support and market pattern recognition, while still accounting for local nuance. 

Baghoomian expects demand for private credit in the Gulf to keep rising. “They are going to require credit, for sure,” she said, pointing to the scale of new platforms and projects. 

“I don’t see it shrinking,” she said, adding that Partners for Growth is seeing more demand and is in late-stage discussions with several companies, though she declined to name them. 

PFG to stay selective despite rising competition 

Competition among lenders has increased since the firm began deploying in the region, Baghoomian said, calling that “very healthy for the ecosystem.” 

Most of what the firm does in the region is asset-backed, Baghoomian said, often through first warehouse facilities for businesses financing receivables or other tangible exposures, “almost always Shariah.” 

Keeping Egypt on its watchlist 

Beyond the Gulf, Baghoomian said the firm is monitoring Egypt closely, though macroeconomic volatility has delayed deployments. 

“We looked at Egypt very aggressively a few years ago, and then the macro issues changed,” she said, adding that the firm continues to speak with companies in the country and track conditions. 

Even as private credit becomes more common in the region, Baghoomian underscored that debt is not universally appropriate. 

“Not every company should take a loan or credit,” she said. “You don’t take it just to take it. It should be getting you to the next milestone.” 

Topics: Partners for Growth Saudi Arabia

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