Huntr has released a comprehensive report providing deep insights into the rapidly growing demand for blue-collar workers in the construction industry, particularly the migration patterns from India to the MENA region. The Saudi Arabian construction industry, valued at US$120.4 billion in 2021, is set for robust expansion with an anticipated annual average growth rate (AAGR) of 4 per cent or more from 2023 to 2026, according to a Gulf Business report.
According to the report, this surge is fueled by substantial investments in transportation, renewable energy, housing, and tourism projects, aligning with the Vision 2030 initiative. Saudi Arabia's commitment to innovative urban development and sustainability is exemplified by the Neom project, a $500 billion endeavor featuring a smart city, skiing destination, floating industrial complex, and luxury resort island. As of Q4 2022, the construction sector in Saudi Arabia employed around 2.46 million workers, with foreign workers constituting 85.4 per cent, or roughly 2.1 million workers. The majority of these foreign workers, particularly in the construction industry, are from India. This underscores the pivotal role foreign labor plays in realising Saudi Arabia's ambitious infrastructure projects and the Vision 2030 initiative.
Further the report identifies Uttar Pradesh, Bihar, Rajasthan, and Tamil Nadu as the highest contributors to the migration of construction workers from India to the Gulf Cooperation Council (GCC) countries. These states have witnessed a surge in workers migrating for construction jobs. Proficiency in construction skills such as masonry, carpentry, plumbing, electrical works, and welding; prior experience in construction projects, especially those with specialised skills, is highly valued. Certifications from The National Skill Development Corporation India (NSDC) and good physical fitness are essential. Basic communication skills in English and adaptability to different working conditions and cultures are advantageous.
The age group of these workers is predominantly composed of young to middle-aged adults, typically ranging from the early 20s to the mid-40s. According to the report, this demographic profile suggests that individuals in the prime of their working years are actively engaged in construction-related occupations. In terms of gender distribution, the workforce in the construction sector is predominantly male.
The qualifications of blue-collar workers in the construction domain exhibit a diverse range of educational backgrounds. Individuals engaged in construction jobs may possess minimal formal education, highlighting the accessibility of such employment opportunities to a broad spectrum of educational experiences. Moreover, many workers have received technical or vocational training in specific construction trades, showcasing the importance of specialized skills in this field.
Samuel Joy, CEO of Huntr said, “We are committed to shedding light on the evolving landscape of blue-collar workforce dynamics in the MENA region. Our comprehensive report highlights the crucial role played by migrant workers, particularly from India, in driving the ambitious growth of the Saudi Arabian construction sector. As we witness this unprecedented demand, it is clear that the collaboration between enterprises and skilled labor is instrumental in realizing the visionary projects outlined in Saudi Arabia's Vision 2030 initiative."