Saudi Freelance Boom: A New Economic Force

Discover how freelancing is reshaping Saudi Arabia's economy, empowering youth and women, and aligning with Vision 2030's economic diversification goals.

Published December 26, 2024 - 00:12am

3 minutes read
Saudi Arabia
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In recent years, Saudi Arabia has witnessed a substantial upsurge in the freelancing sector, with over 2.25 million individuals having registered on the national freelance platform by September 2024. This indicates the growing reliance on flexible work arrangements, underscored by the initiatives of the Ministry of Human Resources and Social Development, which established the 'Future Work' company in 2019.

As part of Saudi Arabia's Vision 2030, the expansion of freelancing aims to diversify the economy by adding SR72.5 billion to the gross domestic product in 2023, accounting for 2% of the national economy. This sector not only strengthens the country's financial standings but also supports the reduction of unemployment rates, which have dropped from 12.8% in 2018 to 7.1% recently, as noted by Minister Ahmed Al-Rajhi.

The freelancing boom is driven by modern work trends, encompassing remote work and flexible hours, appealing particularly to the 25-34 age group. This demographic represents a significant portion of the freelance market, reflecting the aspirations and career preferences of Saudi Arabia's younger generation. Furthermore, the commitment to freelancing is aligned with the increased participation of women in the workforce, with 3.2 million women expressing interest in freelancing, facilitated by initiatives that encourage balance between professional and domestic responsibilities.

The Future Work report highlights the diversity within the freelancing market, with trade and retail representing 38% of freelance activities, followed by industry at 13% and business services at 11%. Such variety enables the freelancing sector to adapt to and fulfill the needs of various economic domains. Education level correlates with involvement in freelancing, where 62% hold bachelor's degrees, 31% have a high school diploma or less, and 7% possess higher degrees.

Technology continues to be a pivotal element in driving this sector's growth, providing digital platforms that are indispensable for success in freelancing. These platforms, particularly impactful in technology, information, and the finance sectors, enhance communication and efficiency, thereby ensuring sustained productivity and economic contributions.

Support from government-backed programs such as Reef, the Social Development Bank, and the Human Resources Development Fund provides an encouraging environment for freelancers to thrive. These initiatives play a crucial role in facilitating freelancers' contributions to the economy by creating job opportunities and promoting economic participation.

Geographically, Riyadh stands as the region with the most significant concentration of freelancers, hosting 27% of the entire freelance population, trailed by Makkah with 22% and the Eastern Province with 14%. This distribution underscores the broad appeal and widespread presence of freelancing across the Kingdom, highlighting its role as a transformative economic force.

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