Education as an Economic driver: A study of Saudi Arabia Economic Growth

Abstract

Education is an essential component of economic growth, a guiding principle of Saudi Arabia's Vision 2030 initiative to reduce oil reliance, and a knowledge-based economy built on business. The study examines the complex elements of education reform that are presented in this analysis regarding the Kingdom's economic development in systemic change, digital transformation, workforce alignment, and policy impact. The analysis shows that the investments made in new curricula, workforce training, and digital learning systems will further support the objectives of economic diversification. However, there still remain some shortcomings, such as a significant mismatch between the relevant skills of graduates and the labor market demands, specifically in non-oil parts of the economy. Moreover, there has been a growing trend towards equal educational access, but gender inequalities persist when it comes to workforce participation. These findings point to the fact that education quality (and not just education access) will be the key indicator of improved productivity. To realize Vision 2030 in its fullest capacity, educational outputs must reflect the competencies needed for the skilled worker role of the private sector. The ongoing development of human capital is a necessity to sustain economic viability.