The Saudi Arabia manpower outsourcing market size was valued at US$ 3.80 million in 2023 and is expected to reach US$ 8.82 million by 2031; it is estimated to record a CAGR of 11.1% from 2023 to 2031.
The market for information and communications technology (ICT) in Saudi Arabia is the largest and fastest-growing market worldwide. Saudi Arabia's 2023 ICT Strategy aims to generate over 25,000 jobs in the sector, expand the IT market and emerging technologies by 50%, and boost the sector's contribution to the country’s GDP by US$ 13.3 billion. The strategy also focuses on attracting foreign investment and enhancing female participation in the ICT industry. Therefore, the expansion of the healthcare and IT industries fuels the Saudi Arabia manpower outsourcing market growth.
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
The report includes the Saudi Arabia manpower outsourcing market forecast by type, and industry. On the basis of industry, the Saudi Arabia manpower outsourcing 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 Saudi Arabia manpower outsourcing market share. In March 2024, Saudi Arabia held ~17% of the world's proven petroleum reserves, making it one of the largest net exporters of oil, according to the International Trade Administration (ITA). It has the second-largest proven oil reserves worldwide. Saudi Aramco, one of the world's largest integrated energy and chemicals companies, operates across all segments of the oil industry, including upstream, midstream, and downstream. The oil, gas, and petrochemical sectors demand highly specialized skills that are often not readily available in local labor markets. These industries require professionals in various fields, such as geophysics, drilling engineering, chemical engineering, health and safety, and petrochemical processing. Outsourcing allows companies to access highly qualified professionals from global talent pools, ensuring that they have the expertise required to meet the technical and operational demands of their projects.
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 Saudi Arabia manpower outsourcing market players that are profiled in this market study.
The overall Saudi Arabia manpower outsourcing market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the Saudi Arabia manpower outsourcing market size. The process also helps obtain an overview and forecast of the market with respect to all the market segments. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights. This process includes industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the Saudi Arabia manpower outsourcing market.
Expanding Healthcare and IT Industries to Favor Market Growth
Saudi Arabia is one of the prime economies among the Middle East countries and has a huge labor force, which is growing at a decent pace. The country houses a number of industrial sectors ranging from manufacturing, information technology, healthcare, and educational institutions, among others. The country’s hospitality industry continues to experience substantial growth. As part of Saudi Arabia's Vision 2030, the country is focusing on developing a sustainable healthcare workforce to meet the needs of its growing population. The country aims to recruit 175,000 healthcare professionals by 2030, including 69,000 doctors; 64,000 nurses; and 42,000 allied health workers. Currently, in 2023, the number of expatriates in the healthcare sector totals 232,000. It includes physicians (~60%), nurses (57%), professional support staff (19%), and pharmacists (61%) in the country.The market for information and communications technology (ICT) in Saudi Arabia is the largest and fastest-growing market worldwide. Saudi Arabia's 2023 ICT Strategy aims to generate over 25,000 jobs in the sector, expand the IT market and emerging technologies by 50%, and boost the sector's contribution to the country’s GDP by US$ 13.3 billion. The strategy also focuses on attracting foreign investment and enhancing female participation in the ICT industry. Therefore, the expansion of the healthcare and IT industries fuels the Saudi Arabia manpower outsourcing market growth.
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
The report includes the Saudi Arabia manpower outsourcing market forecast by type, and industry. On the basis of industry, the Saudi Arabia manpower outsourcing 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 Saudi Arabia manpower outsourcing market share. In March 2024, Saudi Arabia held ~17% of the world's proven petroleum reserves, making it one of the largest net exporters of oil, according to the International Trade Administration (ITA). It has the second-largest proven oil reserves worldwide. Saudi Aramco, one of the world's largest integrated energy and chemicals companies, operates across all segments of the oil industry, including upstream, midstream, and downstream. The oil, gas, and petrochemical sectors demand highly specialized skills that are often not readily available in local labor markets. These industries require professionals in various fields, such as geophysics, drilling engineering, chemical engineering, health and safety, and petrochemical processing. Outsourcing allows companies to access highly qualified professionals from global talent pools, ensuring that they have the expertise required to meet the technical and operational demands of their projects.
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 Saudi Arabia manpower outsourcing market players that are profiled in this market study.
The overall Saudi Arabia manpower outsourcing market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the Saudi Arabia manpower outsourcing market size. The process also helps obtain an overview and forecast of the market with respect to all the market segments. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights. This process includes industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the Saudi Arabia manpower outsourcing market.
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Table of Contents
1. Introduction
2. Executive Summary
3. Research Methodology
4. Saudi Arabia Manpower Outsourcing Market Landscape
5. Saudi Arabia Manpower Outsourcing Market - Key Market Dynamics
6. Saudi Arabia Manpower Outsourcing Market Analysis
7. Saudi Arabia Manpower Outsourcing Market Analysis - by Type
8. Saudi Arabia Manpower Outsourcing Market Analysis - by Industry
9. Competitive Landscape
10. Industry Landscape
11. Company Profiles
12. Appendix
List Of Tables
List Of Figures
Executive Summary
The Saudi Arabia manpower outsourcing market size is expected to grow from US$ 2,694.2 million in 2021 to US$ 5,487.3 million by 2028 at a CAGR of 10.7%.The economic situation of Saudi Arabia is witnessing a significant change in recent times, owing to various regulations being implemented by the Saudi government. These rules and regulations are poised to create massive business and job opportunities in the region for the Saudi national. The Saudi government is attracting foreign direct investments from different countries and helping several international companies establish satellite offices to boost economic growth and create job opportunities. Some of the sectors being majorly focused on development are e-commerce, retail, and entertainment.
The Saudi government is investing substantially in the retail industry and is aiming to create 1.2 million jobs in the sector. The retail industry's interest in catalyzing is anticipated to facilitate manpower outsourcing companies to generate substantial revenue. This is attributed to the fact that the retail sector demands a vast number of employees from various verticals. The trend of manpower outsourcing is expected to soar Saudi Arabia manpower outsourcing market share in the coming years.
The information technology industry in Saudi Arabia is also witnessing significant support from the Saudi government, which is attributed mainly to the country's growing consumer data traffic. The government's IT spending in the Kingdom is constantly increasing year on year, owing to which, several newer technology companies are emerging in the Kingdom. Also, these information technology companies are establishing support services, which is again boosting their revenues and employee growth. The increasing spending in the country's ICT sector is propelling the number of IT and ITES companies, catalyzing the industry's employment sector. The Saudi Arabia manpower outsourcing market is benefiting from the growth of the IT and ITES industry as these companies are outsourcing their recruitment procedures to source the best talents to drive their business.
However, the unemployment rate among Saudi citizens has constantly increased year on year and the concentration of expats or foreign nationals in the country also raised. This is due to the fact that, increasing privatization is demanding increased number of workforce and the Saudi nationals are unwilling to work for low wages in private sector. This gap between production demand and deficient workforce is filled by the expats. Owing to this, the Saudi Government has implemented stringent rules and regulations, under which the private, as well as public sectors in the region, have to employ Saudi nationals with attractive pay scales, designed by the government to combat rising unemployment. According to the Ministry of Labour and Social Development, 70% of the retail sector needs to employ Saudi nationals who are heavily dominated by foreign expatriates.
Saudi Arabia manpower outsourcing market analysis by type, Saudi Arabia manpower outsourcing market is categorized into technical staff, sales & marketing, office/admin staff, and others. Saudi Arabia manpower outsourcing market analysis by industry, the Saudi Arabia manpower outsourcing market is divided into manufacturing, retail, ITES & Telecom, food & beverages, BFSI, hospitality, and others.
Many unskilled migrant workers continue to leave for their home countries due to unemployment or skill mismatches. On the other hand, the employers in the country exercised cost-cutting activities, which led to a reduction in manpower. Thus, coupling both the parameters i.e., reduction in employee count and migration of workers to home countries reflected severe implications on the Saudi Arabia manpower outsourcing market players in the country. This had negative impact on the Saudi Arabia manpower outsourcing market during till Q3 of 2020. However, with the upliftment of lockdown measures and reopening of industries, the demand for manpower increased, which reflected positive revenue generation stream among the Saudi Arabia manpower outsourcing market players, which ultimately resulted in marginal positive Saudi Arabia manpower outsourcing market growth in 2020.
Further, with the continuation of operations for the Saudization program of Vision 2030, the need for manpower across industries is expected to grow significantly. This is creating substantial pressure on Saudi Arabia manpower outsourcing market players to source manpower from various countries. With the continuous advancements toward the Vision 2030 program, the requirement for manpower would surge, which is foreseen to drive the businesses of manpower outsourcing market players in the country during the forecast period.
The overall Saudi Arabia manpower outsourcing market size has been derived using primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the Saudi Arabia manpower outsourcing market. The process also serves the purpose of obtaining an overview and forecast for the Saudi Arabia manpower outsourcing concerning all the segments. Also, primary interviews were conducted with industry participants and commentators to validate data and gain more analytical insights into the topic. This process includes industry experts, such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the Saudi Arabia manpower outsourcing market. A few leading players operating in the market are Ajeets Management & HR Consultancy, Adam Recruitment, PROVEN SA, Talents Hunters, TASC Outsourcing, Advanced Electronics Company, MASSADR, Knowledge Group, Alliance Recruitment Agency, and NES Fircroft.
Companies Mentioned
- 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
- First National Company (FNRCO)
- Serco Group Plc
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 91 |
| Published | January 2025 |
| Forecast Period | 2023 - 2031 |
| Estimated Market Value ( USD | $ 3.8 Million |
| Forecasted Market Value ( USD | $ 8.82 Million |
| Compound Annual Growth Rate | 11.1% |
| Regions Covered | Saudi Arabia |
| No. of Companies Mentioned | 15 |
