Country Overview:

Saudi Arabia is spread over approximately 2,149,690 square kilometers and has a population exceeding 35 million as of 2023. While the total population is substantial, the distribution is highly uneven, with the majority of residents concentrated in a few urban areas. The cities of Riyadh, Jeddah, Mecca, and Medina are the most populous, collectively hosting approximately 60% of the total population

Regions like the Northern Borders, Al Jawf, and Najran each house less than 2% of the national population. These demographic disparities result from historical, geographical, and economic factors, including the centrality of the Hejaz region in Islamic history, the presence of oil reserves in certain areas, and the development of Riyadh as the political and administrative capital.

KSA Macroeconomic Assessment Analysis

KSA has an extensive coastline stretching about 2,640 kilometers along the Red Sea and Arabian Gulf. This geographical advantage provides opportunities for major economic activities.

Urban areas like Riyadh and the Hejaz region serve as the main economic engines, contributing significantly to the GDP and generating the majority of job opportunities and income. Key economic sectors in these regions include oil and gas, real estate, finance, and religious tourism, driven by the Hajj and Umrah pilgrimages.

Areas like the Northern Borders and Al Jawf are predominantly agrarian, with limitations in water and arable land resources hindering robust economic growth. Despite these challenges, they contribute to the national economy by providing agricultural products, such as dates and wheat.

Vision 2030 places a strong focus on education and workforce training. The plan aims to equip the Saudi population with the necessary skills and knowledge to excel in a rapidly changing global economy. It is an initiative to improve the education system, promote vocational training, and enhance lifelong learning opportunities.

Key Trends by Market Segment:

By Avg Monthly Household Income: In Mecca, KSA, the average monthly household income for Saudi families has shown a steady increase over the years, reaching SAR ~19,400. This upward trend reflects positive economic growth and improved financial well-being for Saudi households in the region. On the other hand, non-Saudi households in Mecca have also experienced a gradual rise in average monthly income, reaching SAR ~15,800. This increase signifies the financial opportunities available to expatriate families living and working in the city

By Labour Force Participation Rate: In the city of Medina, Saudi Arabia, the labor force participation rates have shown distinct trends for both Saudi and non-Saudi individuals. Among non-Saudi males, the rates have been consistently high, ranging from 89.6% to 93.6%, indicating strong involvement in the workforce. This can be attributed to the city's economic opportunities, including the tourism sector, as Medina is one of the holiest cities in Islam and attracts a significant number of visitors each year.

For non-Saudi females in Medina, the labor force participation rates have shown a gradual increase, starting at 13.8% and reaching 25.6%. While these rates are relatively lower compared to males, they reflect a positive shift towards greater female workforce engagement, likely influenced by social and economic factors that have enabled more women to participate in the job market.

By Geography: In 2022, Mecca, being one of the holiest cities in Islam, experiences a significant inflow of religious tourists each year, contributing to its economic growth and development. The city's tourism sector, centered around the annual Hajj pilgrimage and Umrah, has been a major driver of economic activity. Followed by Medina and Dammam.

Medina is another important religious city in Saudi Arabia, attracting pilgrims and visitors from around the world. Similar to Mecca, the city experiences significant economic activity related to religious tourism. Investments in infrastructure, hotels, and transportation have contributed to the city's economic growth.

Dammam, located in the Eastern Province, is an important commercial and industrial hub in Saudi Arabia. The city is a major center for the country's oil and gas industry, with many oil-related companies and refineries based in the region. Dammam's strategic location on the coast of the Arabian Gulf makes it a significant port city, facilitating trade and export activities.

Recent Developments:

Several Giga Projects including NEOM, Qiddiya, and the Red Sea Project are part of Saudi Arabia's strategy to diversify its economy. These ambitious projects aim to attract international investments and tourism, create jobs, and enhance the quality of life as per the objectives of Vision 2030.

Saudi Arabia has made significant strides in digital transformation, driven by its goal to create a digital-first economy. The focus has been on enhancing digital infrastructure, fostering tech start-ups, and promoting e-governance.

According to the 2022 census, the total population of KSA is 32.12 million with the median age of 29 years. The KSA fertility rate is 2.8. Of the total population, 58.4% are Saudis, while 41.6% are non-Saudis. Furthermore, Males make up 61.2% of the population, while females make up 38.8% of the population. The average household size of Saudis is 4.8, while the average household size of non-Saudis is 2.7.