The Care Boom

Investment Rating - The report does not explicitly provide an investment rating for the care sector in Saudi Arabia. Core Insights - The demand for care services in Saudi Arabia is sharply increasing due to demographic changes and rising female labor force participation, with the population of children under 14 and older persons projected to exceed 18 million by 2050, up from under 8 million in 2010 [28][34] - The care provision landscape is characterized by a high reliance on unpaid care work, predominantly performed by women, and a significant share of low-skilled domestic workers, with trained professionals making up only 6% of the workforce in health and social work [43][45] - The report emphasizes the need for a strategic approach to enhance the professional care workforce through Technical and Vocational Education and Training (TVET), which can address current skill gaps and improve service quality [56][58] Summary by Sections Executive Summary - A well-functioning care sector enhances quality of life, allows caregivers to pursue careers, increases labor force participation, and reduces the gender wage gap [24][28] - The report highlights the urgent need for trained care workers, estimating a shortage of 1.1 million professionals to meet the growing demand [54][56] Introduction - The care economy is crucial for addressing the needs of children, older persons, and individuals with disabilities, yet it is often underemphasized by policymakers [67][68] - Investing in TVET is essential for training additional care workers to meet the rising demand for quality care services in Saudi Arabia [88] Demand for Care - The population of potential care recipients is rapidly increasing, with significant growth expected among older persons, projected to rise from 860,000 to over 10 million by 2050 [88] - Labor market shifts, particularly the increase in female labor force participation from 20% in 2017 to over 34% in 2021, are tightening the availability of care providers [89] Care Provision Landscape - The care workforce is predominantly composed of unpaid caregivers, low-skilled domestic workers, and a small share of trained professionals, with 42.5% of the care workforce being domestic workers [43][45] - The report identifies a critical need for training and professionalizing the care workforce to improve service delivery and accessibility [56][58]