Saudi Arabia Manpower Outsourcing Market is expected to reach US$ 8.82 Billion by 2031

Growing Emphasis on Saudization to Fuel Saudi Arabia Manpower Outsourcing Market Growth During Forecast Period 

According to our latest study, “Saudi Arabia Manpower Outsourcing Market Size and Forecast (2021–2031), Trend, and Growth Opportunity Analysis – by Type and Industry," the market was valued at US$ 3.80 billion in 2023 and is expected to reach US$ 8.82 billion by 2031; it is estimated to record a CAGR of 11.1% from 2023 to 2031. The Saudi Arabia manpower outsourcing market report includes growth prospects owing to the current Saudi Arabia manpower outsourcing market trends and their foreseeable impact during the forecast period.

Saudization (also known as the Saudi nationalization scheme or Nitaqat) is a part of Saudi Arabia's latest employment policy implemented for Saudi nationals. As per the policies under Saudization, Saudi employers are required to employ Saudi nationals in high numbers. In Saudi Arabia, the majority of the private sector is dominated by expatriates or foreign nationals. The country has continuously faced challenges over the years in creating jobs for Saudi citizens, which include private sector organizations relying on expatriates and a large portion of Saudi nationals preferring high-paying public or private sector jobs. This has increased the unemployment rate among Saudis in the country. 

Saudi Arabia Manpower Outsourcing Market Analysis (%)– by Type, 2023 and 2031

Source: The Insight Partners Analysis

Through the Saudization program, the Saudi government is aiming to employ Saudi nationals residing in both rural as well as urban areas of the country. This is a key beneficial factor for the manpower outsourcing companies operating in the country, as this program is enabling the manpower outsourcing companies to not only source candidates from urban areas but also screen and source job seekers and relocate them from rural areas to the cities with appropriate jobs. The Saudi National Labor Observatory (NLO) report released in May 2024 revealed a net increase in citizen employment for April, with 18,535 Saudi nationals joining the private sector workforce. Currently, more than 2.35 million Saudi nationals are employed, including over 970,200 women and more than 1.38 million men. Thus, the growing emphasis on Saudization fuels the Saudi Arabia manpower outsourcing market growth.   

Ajeets Management and HR Consultancy, ADAM RECRUITMENT, PROVEN SA, TASC OUTSOURCING, Knowledge Group, Serco Group plc, NES Fircroft, Esad for Human Resources Solutions and Management, Tamkeen Talents, JawaHR, Maharah, SMASCO Manpower Saudi Arabia, Yaqoot Manpower Services, and First National Company (FNRCO) are among the key players profiled in the Saudi Arabia manpower outsourcing market report. Several other major players were also studied and analyzed during the market study to get a holistic view of the market and its ecosystem.

The report includes the Saudi Arabia manpower outsourcing market forecast by type and industry. Based on type, the Saudi Arabia manpower outsourcing market is segmented into technical staff, sales and marketing, office/admin support, and others. In terms of revenue, the technical staff segment held the largest Saudi Arabia manpower outsourcing market share and is expected to record the highest CAGR during the forecast period. On the basis of industry, the market is segmented into oil, gas, and petrochemical; construction; IT and telecom; retail; healthcare; real estate; education; tourism; agriculture; and others. The oil, gas, and petrochemical segment held the largest segment held the largest Saudi Arabia manpower outsourcing market share.

The Saudi government is constantly focusing on increasing the number of jobs for both the citizens as well as foreign expats. It is heavily attracting foreign direct investments to expand industries across the country. Apart from the oil industry, other prominent industries in the country are manufacturing, hospitality, education, medical & healthcare, and retail. The country's Vision 2030 has fueled job creation across corporate and individual sectors of the economy. As the country seeks to diversify its economy and reduce dependency on oil revenues, manpower outsourcing has emerged as a critical component of its workforce development approach.

The Saudi government's Saudization (Nitaqat) program continues to shape the outsourcing landscape, implementing strict quotas and regulations to balance local employment needs with strategic workforce requirements. Saudization is a policy based on a quota system implemented by the government to ensure Saudi nationals fill more jobs as well as to reduce unemployment, improve the living standards of citizens, and expand human capital. The initiative aims to reduce the Saudi unemployment rate, as companies are required to maintain specific percentages of Saudi nationals in private companies in their workforce, which has created growth opportunities for manpower outsourcing. For instance, according to Saudi Arabia's Minister of Human Resources and Social Development, as of November 2023, more than 167,000 Saudis entered the labor market within the past 12 months through the updated Nitaqat program, bringing the total Saudis who were employed via the program to 480,000. Further, between 2021 and 2023, Saudis in engineering, accounting, and marketing jobs rose from 40,000 to 70,000; 39,000 to 107,000; and 35,000 to 104,000; respectively.

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