EXPERT BRIEF R E G I O N A L

New Approach to the Human Capital Problem Under the rule of crown prince Muhammed bin Salman (MBS), Saudi Arabia has launched an ambitious plan, Vision 2030, for the economy’s diversification and the transition to the post-oil world.12 Vision 2030 strategy has demonstrated the Saudi state’s determination to reform the labor market, and has substantially increased the speed of human capital reform. [...] The Kingdom of Saudi Arabia Vision 2030 strategy document identifies the key sectors for diversification of the economy and projects significant investments in these sectors.13 Certainly, an important factor for the success of these investments is the availability of skilled human capital. [...] One of the important challenges to this lies in the reform of increasing the attractiveness of the private sector job market. [...] The government plans to increase the private sector’s share in the economy and the labor 6 The government plans to increase the private sector’s share in the economy and the labor market would entail reducing the relative advantage of the public sector against the private sector market would entail reducing the relative advantage of the public sector against the private sector. [...] First, Dubai was the emirate with the smallest reserve of oil which helped Dubai to concentrate on diversifying the economy since the early stages of its development and on attracting high-skilled labor.26 Secondly, the small size of the population was also helpful, not having a lot of conflict-prone rifts in the society, thus satisfying its citizen base with much ease.