Saudi Arabia's Hydrogen Push Creates New Job Opportunities and Skills Challenge

Saudi Arabia's push to establish a clean hydrogen industry could reshape its labor market, creating new technical and engineering job opportunities while testing the Kingdom's efforts to increase Saudi nationals' participation in the private sector.

The study, titled Energy Diversification and a Shifting Labor Market in Saudi Arabia: Green Jobs and Education Potential in the Development of a Clean Hydrogen Sector, examines the employment and education implications of the Kingdom's energy transition. Saudi Arabia is pursuing its Vision 2030 agenda to reduce dependence on oil and develop new sources of economic growth.

Clean hydrogen could become an important component of this transition, with potential employment spanning renewable energy generation, electrolysis, carbon capture, transportation, storage, research, operations, and maintenance. However, the number and type of jobs created will depend on how Saudi Arabia develops the industry, particularly whether hydrogen production is primarily directed towards domestic consumption or international exports.

The study points to different employment requirements across the hydrogen value chain. Renewable energy projects are likely to require workers ranging from technicians and machine operators to engineers and other technical specialists. Electrolyser projects could create significant employment during construction, including positions for engineers, metal workers, and assemblers, although the number of permanent jobs once facilities become operational is expected to be considerably smaller.

Carbon capture projects could follow a similar pattern, with construction generating demand for a broad range of workers before employment shifts towards more specialized roles involving machinery installation, maintenance, and repairs. This creates an important opportunity for Saudi Arabia's workforce but also a skills challenge.