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Demographics

Young populations to enter workforce

Underpinning the move into new industries are demographics that suggest a strong rise in demand for almost every product, from houses to hairdryers, over the next decades, as a rush of young people enter the work force.

Around two thirds of the population in the Middle East and North Africa is under 30 years of age, almost the mirror image of societies in Europe and North America, where more than half of the population is over 40.

The youthful population is already having an impact on consumer patterns.

For example, in Saudi Arabia, cell phone service subscription tripled in three years to 28 million in 2007 – more than one per person – because of soaring demand among the country’s youth. A third of Saudis are aged between 10 and 24, and the birth rate is rising at about 2.8 percent each year, compared to 1.4 percent in the United States.

Age breakdown for combined population of six Gulf Cooperation Countries

Workforce to grow in coming years

Country	Total population (millions)	Percentage of population under 40	Percentage of population in urban areas	Total number of households(millions)	Average household size	Total labour force (millions)
Saudi Arabia	26.11	79.1	88.8	4.37	6.0	8.38
Egypt	75.58	78.3	58.0	17.65	4.3	21.05
Algeria	34.36	73.8	61.4	6.51
Morocco	31.32	71.4	59.5	6.09	5.1	10.21
South Africa	48.60	73.1	57.6	13.85	3.5	13.70
Turkey	74.49	70.3	68.4	18.49	4.0	40.70
Argentina	40.25	65.0	89.9	11.30	3.6	10.61
United States	308.39	54.5	80.6	122.44	2.5	149.22
China	1,326.63	54.2	46.8	411.75	3.2	779.38
Russia	143.41	50.7	73.3	53.40	2.7	68.72
France	61.72	50.0	75.3	24.98	2.5	25.57
United Kingdom	61.87	50.6	89.3	27.56	2.2	29.04
Japan	127.78	44.3	55.7	49.52	2.6	63.71
Germany	82.08	42.0	88.4	35.93	2.3	37.39

(source: Global Demographics)

Because of the young demographic profile, the household size in the Middle East and North Africa is much bigger than in other regions, with an average of six people living under one roof in Saudi Arabia, 5.1 in Morocco and 4.3 in Egypt. And the number of people in the labour market is proportionately smaller than in other parts of the world.

However, as the current generation of children, grow up and boost the workforce, the region is expected to see a spurt in demand for big-ticket items – houses and cars – as well as consumer goods, which should bolster economic growth.