RIYADH: Saudi Arabia is approaching a demographic crossroads, with birth rates dropping from 44 births per 1,000 people in 1980 to 16 in 2023, according to World Bank data.
Experts warn that the implications extend beyond human capital, healthcare, education, and real estate, affecting large cars, family homes, and insurance systems, as the population ages and the proportion of young people declines.
Experts speaking to Al-Eqtisadiah noted that by 2050, Saudi Arabia will face a significant aging challenge, as the population pyramid will expand in the middle and upper age groups relative to its base, signaling a shift from a youthful growth phase.
They added that these changes could reduce the number of new entrants to the labor market while increasing retirees, putting financial pressure on pension systems unless early reforms are implemented, such as raising the retirement age and promoting long-term savings.
The Kingdom’s population currently stands at approximately 34.6 million, with projections reaching 47.7 million by 2050, according to population pyramid data.
