A Problem Measured in Numbers, Not Impressions

The presentation by the Ministry of Human Resources confirmed that 60% of higher education graduates do not align their qualifications with the labor market requirements (Statistics from the General Authority for Statistics, 2024). To address this gap, 13 sectoral skills councils were established representing 70% private sector and 30% government entities, responsible for formulating professional standards and skill frameworks that will be linked in the future to support and financing.

Structure of the Sectoral Councils: 13 Councils with Three Layers of Work

Sector | Leading Entity | Examples of Priority Occupations

Industry and Manufacturing | Saudi Chambers Union | Robotics Operating Technician, Reliability Engineer

Energy and Petroleum | Aramco + Ministry of Energy | Drilling Operator, Smart Data Analyst

Transport and Logistics | Public Transport Authority | Shipping Route Planner, Electric Vehicle Technician

Health | Health Clusters | Health Data Specialist, Home Nurse

Tourism and Hospitality | Ministry of Tourism | National Kitchen Chef, Heritage Experience Guide

… | … | …

The Three Layers of Work

  1. Skill Forecasting: Analyzing global trends and local demand.
  2. Standard Development: Describing the occupation, competencies, and career progression path.
  3. Accreditation and Updates: Annual review and connection to funding and incentives.

How is the “Skill Framework” Built?

  • Market Demand Study: Employment data, job advertisements, developmental expansion plans.
  • Unified Standards include: Job title, task description, knowledge competencies, technical and behavioral skills, accreditation certificates.
  • Update Cycle: Every 18 months or when a revolutionary technology appears (e.g., electric vehicles in transportation).

The Role of Associations and Training Centers in Data Collection

Task | How Does the Association Implement It? | Direct Outcome

Survey of Actual Skills of Trainees | Diagnostic questionnaire before the program + submission to the councils' portal | Priority in trial invitations

Providing Employment Case Studies | Tracking program graduates 6 months post-graduation | Additional points in government funding

Participation in Standard Workshops | Nominating a trainer or field expert for each workshop | Building a network of relationships with employment companies

Using the Training Disclosure Platform | Submitting data on training hours and content | Early compliance before formal obligation

Golden Opportunity: Associations that provide high-quality data will be accredited as “Standard Development Partner” centers and receive additional technical and financial support from the ministry.

How do Training Centers Benefit from Predefined Standards for Faster Funding?

  1. Align the Program Directly with the Standard

    • Reduces 50% of the review time with the Development Bank or HRDF.

  2. Attach a Compliance Letter from the Skills Council

    • It is considered a “Qualifications Permit,” which raises funding priority.

  3. Add a Professional Certification Pathway

    • Provides additional support of up to 2000 riyals per trainee.

  4. Show the “Employment on Graduation Day” Index (SEHAI achieved 100%)

    • Companies prefer programs tied to previously accredited competencies.

  5. Link to the “Masar” Platform

    • Facilitates quality categorization and demonstrates compliance to funders.

The Cost of the Gap versus the Gains from Closing It

Item | Current Status | After Applying Standards (Ministry Estimate)

Percentage of Non-Compliant Graduates | 60% | 20% within three years

Annual Waste in Training Spending | 4.8 billion riyals | ▼ 2.9 billion

Time to Approve a New Program | 180 days | 90 days

Employment Rate after 6 Months | 55% | 80%

Practical Recommendations for the Non-Profit Sector

  1. Make an expert from your association a permanent member of the sector council that relates to your services.
  2. Align your current programs by 2025 with the draft standard (even if still not officially approved) to ensure smooth funding.
  3. Invest in the Disclosure Platform; good data is the new currency for obtaining support.
  4. Build partnerships with employers now; their involvement in the standard committee makes them the primary partner for employment-focused training.

Conclusion

The sectoral skills councils are not a new bureaucratic apparatus, but a mechanism to close a significant gap that has cost the economy billions. By adopting skill frameworks and professional standards, and linking funding and employment to them, the non-profit sector can transform from a “provider of activities” to a competency maker that efficiently and quickly employs the youth of the Kingdom.