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% during 2023–2031. The rise of government labor market reforms is likely to bring new trends to the Saudi Arabia manpower outsourcing market during the forecast period.
Saudi Arabia has experienced significant progress in industrialization and commercialization in recent years. Despite the economic challenges caused by disruptions in the oil industry, the country has successfully diversified its economy by attracting a range of industries. The establishment of international companies in the country has played a pivotal role in its economic recovery. With the rising establishment of industries, there is a corresponding increase in demand for skilled labor to ensure smooth operations and enhanced production. However, a growing reluctance among Saudi youth to pursue private-sector employment at lower wage levels has created a gap in the domestic workforce. This shortage has been largely addressed by the influx of expatriates, who currently dominate many sectors in the country.
Manpower outsourcing allows organizations to focus on their core competencies while leveraging specialized expertise in staffing and workforce management. By outsourcing manpower, companies can significantly reduce operational costs related to recruitment, training, and employee benefits. This enables businesses to allocate resources more effectively. Outsourcing firms possess industry-specific knowledge and experience, providing access to a wider talent pool. This ensures that businesses can find qualified candidates who meet their specific skill requirements quickly. The Saudi government has implemented the Saudization initiative as part of its Vision 2030 strategy. This initiative aims to create new employment opportunities for Saudi citizens by encouraging the hiring of skilled local talent across various industries. The Saudization program is expected to generate significant job opportunities in the coming years, with a particular focus on sectors such as retail, where demand for labor remains high. Moreover, the increasing consumer demand across multiple industries is driving companies to invest considerable time and resources into recruiting professionals with specialized expertise. However, considering the complexity and time-intensive nature of recruitment, many organizations are outsourcing their hiring processes. This trend is fueling the growth of the manpower outsourcing industry in Saudi Arabia as companies seek external recruitment agencies to streamline the hiring of qualified personnel and meet the evolving demands of the market.
In recent years, Saudi Arabia has unveiled a series of ambitious large-scale projects designed to transform the country into a leading global economic powerhouse. These initiatives, supported by multi-billion-dollar investments, aim to diversify the national economy beyond oil, create significant employment opportunities, and elevate Saudi Arabia's status as a prime hub for trade and tourism. For instance, in 2017, NEOM, a transformative development initiative, was introduced to create approximately 460,000 jobs and contribute an estimated US$ 48 billion to Saudi Arabia's GDP; it is projected to be completed by 2025. Similarly, in November 2024, the Saudi Roads General Authority (RGA) announced that the road sector in the Riyadh region is undergoing a major transformation, with ongoing work on projects worth SAR 3 billion (US$ 798 million). The total length of roads in the region is approximately 15,000 km, and significant efforts are being made to implement new road projects and carry out maintenance across all of the region's governorates. According to the RGA, 23 road projects have been completed in the Riyadh region, including 20 preventive maintenance projects covering a total of 215 km. Therefore, the rise in infrastructure development projects drives the Saudi Arabia manpower outsourcing market
The Saudi government aims to attract foreign direct investments from various countries to help international companies establish their satellite offices to boost economic growth as well as create job opportunities. A few of the sectors being majorly focused on development are e-commerce, retail, and entertainment, among others. The interest in catalyzing the retail industry facilitates manpower outsourcing companies to generate substantial revenue.
In the recent past, the e-commerce industry has flourished significantly in Saudi Arabia. The increasing penetration of the Internet and smartphones has led Saudi youths to continue opting for online retail in the future. The e-commerce industry possesses substantial job opportunities in the Saudi market. In addition, Saudi Arabia's commitment to the entertainment sector is clearly demonstrated by its major giga-projects, alongside numerous initiatives such as the establishment of key public entities, including the General Entertainment Authority (GEA), the Saudi Commission for Tourism and National Heritage (SCTH), the General Culture Authority, and the General Commission for Audiovisual Media (GCAM). The country aims for the entertainment sector to contribute 4.2% to the national GDP and generate 450,000 job opportunities by 2030. Thus, the growth of e-commerce and entertainment sectors is likely to fuel the Saudi Arabia manpower outsourcing market growth during the forecast period.
Key segments that contributed to the derivation of the Saudi Arabia manpower outsourcing market analysis are type and industry.
Thus, the Saudi Arabia manpower outsourcing market has experienced significant growth over the past few years, driven by the country's economic diversification, government reforms, ongoing development initiatives under the Vision 2030 plan, and the demand for specialized skills across various sectors.
The regional trends and factors influencing the Saudi Arabia Manpower Outsourcing Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Saudi Arabia Manpower Outsourcing Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 3.80 Million |
| Market Size by 2031 | US$ 8.82 Million |
| Global CAGR (2023 - 2031) | 11.1% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | Saudi Arabia
|
| Market leaders and key company profiles |
The Saudi Arabia Manpower Outsourcing Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Saudi Arabia Manpower Outsourcing Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The Saudi Arabia manpower outsourcing market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the key developments in the Saudi Arabia manpower outsourcing market are listed below:
The "Saudi Arabia Manpower Outsourcing Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:
The List of Companies - Saudi Arabia Manpower Outsourcing Market
The Saudi Arabia manpower outsourcing market is expected to reach US$ 8.82 million by 2031.
The key players, holding majority shares, in Saudi Arabia manpower outsourcing market includes SMASCO, Alliance Recruitment Agency, Proven SA, Knowledge Group Consulting, and TASC Outsourcing.
The technical staff segment led the Saudi Arabia manpower outsourcing market with a significant share in 2023.
The Saudi Arabia manpower outsourcing market was estimated to be USD 3.80 million in 2023 and is expected to grow at a CAGR of 11.1%, during the forecast period 2024 - 2031.
The government labor market reform are the major future trends for the Saudi Arabia manpower outsourcing market.
The growing emphasis on Saudization, rise in infrastructure development projects, and expanding healthcare and IT Industries are the factors driving the Saudi Arabia manpower outsourcing market growth.