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Saudi Arabia Brings Global Leaders Together to Shape Future of Labor Markets

 Delegates attend the meeting bringing together 40 labor ministers (The Global Labor Market Conference). 
 Delegates attend the meeting bringing together 40 labor ministers (The Global Labor Market Conference). 
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Saudi Arabia Brings Global Leaders Together to Shape Future of Labor Markets

 Delegates attend the meeting bringing together 40 labor ministers (The Global Labor Market Conference). 
 Delegates attend the meeting bringing together 40 labor ministers (The Global Labor Market Conference). 

Under the patronage of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, the third edition of the Global Labor Market Conference opened on Monday in Riyadh, bringing together labor ministers, policymakers and experts from around the world.

The event reflects Saudi Arabia’s growing role in steering global discussions on labor-market transformation and future economic challenges.

Held on Jan. 26–27, the conference serves as a high-level platform to address rapid technological change, artificial intelligence, shifting trade patterns, evolving skills systems and the need to build more resilient and sustainable labor markets. A central theme is youth empowerment, which is a key driver of future economic growth.

Opening the conference, Saudi Minister of Human Resources and Social Development Ahmed Al-Rajhi said global labor markets are undergoing unprecedented change driven by technological progress, demographic shifts and evolving skills requirements. He stressed the importance of international cooperation and deeper knowledge exchange to respond effectively to these transformations.

Al-Rajhi noted that the conference has moved beyond dialogue to developing practical, evidence-based solutions that strengthen labor-market readiness, particularly amid the accelerating adoption of digital technologies and AI.

He highlighted this year’s themes, including the impact of trade transformation on employment, informal economies, global skills systems, the effects of AI on jobs, employment during crises and the development of flexible labor markets, adding that the event aligns with Saudi Arabia’s Vision 2030 reform agenda.

On the sidelines of the conference, Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef emphasized the growing role of governments in establishing regulatory frameworks for emerging jobs, advanced technologies and evolving business models. He called for integrated systems that align efforts across government, the private sector, educational institutions and the workforce.

Alkhorayef said sustainable labor markets rest on three pillars: effective government policies, alignment between education outcomes and future labor needs, and individual readiness to compete globally. He added that Saudi Arabia faces not a shortage of jobs in industry and mining but a need for highly qualified talent, noting that the future of these sectors is closely linked to technology and advanced skills development.

Saudi Minister of Tourism Ahmed Al-Khateeb said tourism has been a key driver in reducing unemployment to record lows comparable with OECD and G20 levels. He added that the sector has created 250,000 jobs for Saudis since the launch of the National Tourism Strategy in 2019, raising total employment in tourism to more than one million by the end of last year. He also highlighted Vision 2030’s focus on economic diversification and people-centered development, noting that tourism is among the most attractive sectors for youth and women.

Mamta Murthi, Vice President for People at the World Bank Group, noted that workforce systems must evolve in line with rapid global economic shifts. She described Saudi Arabia’s cooperation with the World Bank as a model for translating evidence-based policies into tangible economic opportunities while supporting inclusive job growth.

Murthi highlighted persistent challenges in skills development, including mismatches between education and labor-market needs, outdated training programs and limited scalability of effective solutions, warning against supply-driven approaches disconnected from real market demand.

The ministerial meeting held within the framework of the conference, chaired by Al-Rajhi and attended by 40 labor ministers, alongside ILO Director-General Gilbert F. Houngbo, focused on aligning employment policies with future-readiness, sharing practical experiences and strengthening coherence in labor-market strategies.

The meeting concluded with agreement on six priority actions, including improving skills recognition and portability, promoting responsible use of AI, adapting social-protection systems to support career mobility, strengthening data-driven workforce planning and expanding pathways to first employment and re-entry into the labor market.

The first day also marked the graduation of the inaugural cohort of the Global Labor Market Academy, representing 34 countries.

Established in partnership with the World Bank and Takamol Holding, the academy combines in-person training with international knowledge exchange. With participation from 31 countries in the new cohort, the initiative now includes 50 countries and aims to expand to more than 75 by 2028, reinforcing a global model for turning policy dialogue into measurable impact.

 

 

 

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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.

Business

Aljadaan: Emerging Markets Account for 70% of Global Growth

Al-Jadaan speaking to the attendees at the "AlUla Conference for Emerging Market Economies" (Asharq Al-Awsat
Al-Jadaan speaking to the attendees at the "AlUla Conference for Emerging Market Economies" (Asharq Al-Awsat
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Aljadaan: Emerging Markets Account for 70% of Global Growth

Al-Jadaan speaking to the attendees at the "AlUla Conference for Emerging Market Economies" (Asharq Al-Awsat
Al-Jadaan speaking to the attendees at the "AlUla Conference for Emerging Market Economies" (Asharq Al-Awsat

Saudi Minister of Finance Mohammed Aljadaan stressed Sunday that the world economy is going through a “profound transition,” saying emerging markets and developing economies now account for nearly 60 percent of the global Gross Domestic Product (GDP) in purchasing power terms and over 70 percent of global growth.

In his opening remarks at the AlUla Conference for Emerging Market Economies, organized by the Saudi Ministry of Finance and the IMF in AlUla, the minister said these economies have become an increasingly important driver of global growth with their share of global economy more than doubling since 2010.

“Today, the 10 emerging economies in the G20 alone account for more than half of the world growth. Yet, they face a more complex and fragmented environment, elevated debt levels, slower trade growth and increasing exposure to geopolitical shocks.”

“Unfortunately, more than half of low income countries are either in or at the risk of debt distress. At the same time global trade growth has slowed at around half of what it was pre the pandemic,” Aljadaan added.

The Finance Minister stressed that the Saudi experience over the past decade has reinforced three lessons that may be relevant to the discussions at the two-day conference, which brings together a select group of ministers and central bank governors, leaders of international organizations, leading investors and academics.

“First, macroeconomic stability is not the enemy of growth. It is actually the foundation,” he said.

“Structural reforms deliver results only when institutions deliver. So there is no point of reforming ... if the institutions are unable to deliver,” he stated.

Finally, he said that “international cooperation matters more, not less, in a fragmented world.”

Business

Georgieva from AlUla: Growth Still Lacks Pre-pandemic Levels

Kristalina Georgieva speaking to attendees at the second edition of the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat)
Kristalina Georgieva speaking to attendees at the second edition of the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat)
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Georgieva from AlUla: Growth Still Lacks Pre-pandemic Levels

Kristalina Georgieva speaking to attendees at the second edition of the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat)
Kristalina Georgieva speaking to attendees at the second edition of the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat)

International Monetary Fund (IMF) Managing Director Kristalina Georgieva said Sunday that world growth still lacks pre-pandemic levels, expressing concern as she expected more shocks amid high spending and rising debt levels in many countries.

Georgieva spoke at the AlUla Conference for Emerging Market Economies, organized by the Saudi Ministry of Finance and the IMF in AlUla.

The two-day conference brings together a select group of ministers and central bank governors, leaders of international organizations, leading investors and academics to deliberate on policies to global stability, prosperity, and multilateral collaboration.

Georgieva said that the conference was launched last year in recognition of the growing role of emerging market economies in a world of sweeping transformations.

“I came out of this gathering .... With a sense of hope for the pragmatic attitude and determination to pursue good policies and build strong institutions,” she said.

Georgieva stressed that “good policies pay off,” and said that growth rates across emerging economies reached four percent this year, exceeding by a large margin those of advanced economies that are around 1.5 percent.