GCC Region Records 25% Surge in Workforce Since 2020

GCC region’s workforce has grown by 25% since 2020 and now includes 31.8 million workers. The region shows strong economic resilience despite worldwide financial challenges. Economic growth in the Gulf Cooperation Council will likely rise to 3.2% in 2025 and 4.50% in 2026. This comes after modest increases from 0.3% in 2023 to 1.7% in 2024.

The GCC countries should achieve an economic growth of 3.6% in 2024. Their non-hydrocarbon sector remains strong and should expand by 3.7%. Private consumption, investment, and structural reforms throughout the region drive this growth. Each country in the GCC displays unique workforce patterns as their population adapts to economic changes. The GCC region consists of six Middle Eastern nations that have strengthened their economies through government spending. They have done this effectively during economic downturns. The UAE and Qatar lead the expansion in technology, renewable energy, tourism, and real estate sectors.

GCC countries record 25% workforce growth since 2020

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The GCC labor market has grown by a lot according to Secretary-General Jasem Albudaiwi. The workforce jumped from 27.9 million in 2020 to 34.9 million in 2024 – a 24.8% increase. This growth shows how well policies have worked to cut unemployment, boost private sector jobs and build skills in the region.

More women have joined the GCC workforce too. Female citizens now make up 40.2% of the national workforce in Q2 2024, up from 36.4% in 2019. Gender balance programs and better work environments have made this progress possible.

The UAE guides employment growth in GCC countries with an 8% jump in Q3 2024. Saudi Arabia follows close behind at 7%. Strategy consulting has surged 14%, while real estate grew 9%. Banking and technology sectors have expanded rapidly too. Cooper Fitch expects jobs to grow another 5% across GCC countries by year end.

Saudi Arabia’s unemployment rate for nationals dropped below 10% in 2023, improving from 11.8% in 2020. Non-oil sectors now power the region’s development. Saudi Arabia and UAE’s non-oil GDP grew 4.5% and 5.9% in early 2023.

GCC country-wise labor force trends reveal diverse growth patterns

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A close look at individual GCC countries shows notable differences in workforce development patterns throughout the region. Saudi Arabia has achieved remarkable job growth, as private sector employment increased by 12% on average in 2024. The Kingdom’s unemployment rate for nationals dropped to 7% by Q4 2024. Female participation in the workforce reached an unprecedented 36%, which doubled over five years.

The UAE’s workforce tells a different story, with women’s participation climbing to 34.6% in 2024. Women now make up 70% of all graduates in the region and hold 34% of positions in the Emirates Mars Mission.

Oman’s labor market has unique characteristics. The private sector employs 56% of Omani citizens, and Omani workers earn about twice the salaries of expatriates in similar roles. The sultanate aims to achieve an Omanisation rate of 30% by 2040, up from 19% in 2021.

Tourism drives Qatar’s workforce development and supports 334,500 jobs, representing 15.8% of the total workforce. Bahrain takes an investment-focused approach that secured BD680 million in 2024, which should create 7,400 jobs over three years.

Kuwait faces unique challenges. The country’s non-oil GDP should grow by 2.6%, but domestic credit growth decreased to 1.7% in 2023 from 7.7% in 2022.

Governments implement reforms to localize and diversify employment

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GCC countries have implemented complete localization policies to reduce their dependence on foreign workers and create long-term jobs for citizens. Saudi Arabia has made notable progress through its Nitaqat initiative. The country achieved 23% workforce localization by early 2022 and wants to reach 30% by 2025. Saudi government now refuses to renew work permits for non-Saudi employees in companies that don’t comply.

UAE has introduced mandatory Emiratisation quotas. Companies with 20-49 employees must hire at least one Emirati. Non-compliant companies face fines starting at AED 96,000. Qatar’s localization rate reached 19% in 2022, with plans to increase it to 20%. Oman wants to increase its 19% Omanisation rate to 30% by 2040.

Women’s participation in the workforce has grown substantially in GCC countries. Saudi Arabia has seen a major increase in female labor participation since 2017 across all age groups. The UAE’s Gender Balance Council, 7 years old, requires 20% female representation on boards of publicly listed companies.

GCC governments have prioritized skill development beyond quotas. Qatar’s Vision 2030 creates opportunities and vocational support for women. Kuwait and Saudi Arabia give pregnant women up to 10 weeks of paid maternity leave. Yet challenges remain as citizens prefer public sector jobs where they earn 55% more than their private sector counterparts.

GCC’s workforce has grown by a remarkable 25% since 2020, showing the region’s economic strength despite worldwide challenges. The total workforce expanded from 27.9 million to 34.9 million workers, which proves successful policies across member nations. Economic forecasts paint an optimistic picture, with growth expected to hit 3.6% in 2024 and climb to 4.5% by 2026.

Each GCC nation has created its own unique employment patterns. Saudi Arabia’s private sector jobs grew by an average of 12%, with female participation reaching record levels. The UAE now guides employment growth at 8%, with Saudi Arabia following at 7%. Oman’s focus remains on increasing its citizens’ presence in private companies. Qatar builds its workforce around tourism, while Bahrain’s new investments create jobs steadily. Kuwait, however, faces some setbacks due to slower domestic credit growth.

Government reforms have altered the employment map across the region. Saudi Arabia’s Nitaqat program and UAE’s Emiratisation quotas have helped reduce foreign worker dependency. Women’s presence in the workforce has risen sharply in GCC countries. They now make up 40.2% of the national workforce, up from 36.4% in 2019.

The non-hydrocarbon sector continues to thrive with 3.7% growth, becoming the key driver of development. Jobs multiply rapidly in strategy consulting, real estate, banking, and technology industries. This move away from oil dependency shows a radical alteration in the region’s economic makeup.

GCC’s workforce transformation combines strategic reforms with increased female participation and economic diversity to create lasting growth. The region’s success in expanding job opportunities while handling global economic pressures highlights its growing global economic influence. These positive trends help GCC countries achieve their ambitious long-term goals while building more inclusive job markets for everyone.