Statistic Development and Profit in Mena Region

Introduction

The population growth in Saudi Arabia has been driven by both migration and a fertility rate of 2.1 children per woman. While foreign labor constitutes a significant portion of the workforce in Saudi Arabia, other GCC nations rely even more heavily on migrant workers. In 2010, Kuwait and Qatar had migrant populations accounting for 80% of their total populations, whereas the proportion of foreigners in GCC nations reached 42.7%, a sharp increase from 9.7% in 1975.

Demographic Trends and Economic Implications

Countries experiencing strong demographic growth must also address the dependency ratio. In GCC nations, the dependency ratio is increasing due to the large young population, placing a burden on the economically active population. Most Middle Eastern and North African (MENA) countries are still in the early stages of their demographic transitions, characterized by high life expectancy and high fertility rates.

Regional Economic Growth and Population Trends

Despite these demographic challenges, the MENA region has witnessed strong economic growth over the past two decades, partly due to an expanding working-age population. For instance, demographic changes in Egypt between 1965 and 1990 accounted for one-sixth of its income per capita growth. Similarly, Jordan’s dependency ratio has been declining, which is expected to drive nearly 50% of its anticipated per capita growth rate.

Policy and Economic Strategy

Economic policies will play a crucial role in determining whether MENA countries can benefit from their demographic dividends. Policies promoting global trade, education, and employment can help integrate the increasing workforce into productive economic roles. Saudi Arabia faces a looming challenge of unemployment among its young population, with 60% of its citizens under 25.

Challenges and Solutions

Several factors contribute to Saudi Arabia’s employment challenges, including outdated education systems, restrictive labor laws, and inadequate opportunities for young professionals. Encouraging investment, liberalizing labor markets, and improving education and vocational training are key strategies that can help the region capitalize on its demographic potential.

Conclusion

The MENA region must implement reforms in education, employment policies, and investment strategies to leverage its demographic advantages. If these changes are successfully enacted alongside declining fertility rates, the region could experience significant economic gains. Otherwise, challenges such as unemployment and economic stagnation may persist, mirroring the current difficulties faced by Saudi Arabia.