Riyadh: A new BlackRock report finds the Middle East at a defining moment in how individuals prepare for retirement, with strong financial confidence today contrasting with preparedness for the future, and a clear opportunity to strengthen systems that support long-term financial security and economic growth.
All economies across the region undergo profound transformation, the Read-on Retirement: GCC 2026 study highlights that strengthening retirement systems can play a dual role: improving individual outcomes while mobilising domestic savings to support deeper capital markets and long-term economic resilience.
Saudi Arabia stands at a critical juncture with a clear opportunity to build more resilient long-term savings systems as the Kingdom undergoes broader economic and societal transformation, creating both a challenge and a significant opportunity.
The report finds that new funded defined contribution plans — such as voluntary workplace savings schemes — present a “dual opportunity”, both improving individual security and mobilising domestic savings into long-term investments to deepen Saudi capital markets and support economic diversification. By creating long-term pools of domestic capital, these frameworks not only boost retirement outcomes but also contribute to Saudi Arabia’s broader Vision 2030 goals of wider investor participation and more robust financial markets.
“Developing robust retirement systems is not just a social imperative, it is a capital markets opportunity. By moving towards funded, long-term savings frameworks, Saudi Arabia can mobilise domestic capital at scale thereby channelling household savings into productive investment, deepening local markets, and supporting the Kingdom’s broader economic diversification agenda,” Kashif Riaz, Head of BlackRock Riyadh Investment Management and Middle East Financial Advisory said.
“The positive story here is that Saudi Arabia is moving in the right direction. Retirement reform is part of the broader Vision 2030 agenda and is beginning to reshape how people think about long-term savings.”
Today, a significant share of household savings remains concentrated in property (18%), gold (40%) and cash (49%), limiting both individual outcomes and the ability to channel capital into productive long-term investments. Expanding access to structured, funded retirement solutions could mobilise domestic savings into long-term investment pools; support deeper, more liquid capital markets; and enable residents’ wealth to grow alongside the Saudi Arabian economy.
While Saudi Arabia’s workforce is broadly confident about their finances today, a gap remains in long-term retirement readiness — especially for expatriates — which underscores the need for stronger retirement systems to complement the Kingdom’s public pension framework.
The study highlights that strengthening workplace, and individual retirement savings plans can reinforce Saudi Arabia’s national pension system, not replace it. With over a third of Saudi Nationals (36%) expecting to rely on their public pension in retirement, but only 6% across the region able to rely on an employer-provided scheme, complementary funded schemes are needed to broaden coverage.
Driven largely by access to structured pension provision, 59% of Saudi Nationals feel prepared for retirement, compared to just 41% of expatriates, who often rely on less structured workplace arrangements or personal savings. Rather than replacing public pensions, enhanced retirement systems form a critical second pillar — strengthening financial resilience across both Nationals and expatriates, while supporting Saudi Arabia’s broader economic transformation goals.
