Saudi employers are increasingly confident in the job readiness of university graduates, with 90% saying workplace preparedness has improved over the past five years, according to new research released by Pearson and Amazon Web Services (AWS).
The findings, unveiled in Riyadh on June 18, are part of the Pearson-AWS AI Readiness Report, which surveyed 2,711 respondents across six markets, Saudi Arabia, the United States, the United Kingdom, Brazil, Vietnam and Malaysia.
Saudi Arabia emerged as one of the strongest-performing markets in the study. Half of Saudi employers rated recent graduates as “excellent,” marking the highest level of employer satisfaction recorded in the report. The figure significantly exceeds the cross-market average, where only 60% of employers reported improvements in graduate workplace readiness.
The research also highlights substantial investment in artificial intelligence capabilities across Saudi higher education institutions. Nearly half (48%) of university leaders described their AI investments as significant, while another 40% classified them as moderate, bringing the combined investment rate to 88%.
Universities are also maintaining close ties with industry. According to the report, 94% of higher education leaders reported frequent or very frequent engagement with employers, the highest level among all markets surveyed.
This focus on AI is reflected in student preparedness. 43% of Saudi learners said they felt highly ready for an AI-enabled workforce, while 71% believed their universities were preparing them very or moderately well for future employment.
Additionally, 34% of Saudi students reported receiving extensive or regular AI instruction, compared with 21% in the US and 19% in the UK.
Despite the positive outlook, employers are seeking a more targeted mix of skills. Saudi Arabia was the only market in the study where proficiency in functional AI tools ranked as the most important hiring criterion. Communication and collaboration followed as the second-highest priority.
“Skills, education and workforce alignment” have been placed “at the centre of its national agenda,” said Tony Lteif, Global Revenue Officer, English Language Learning and Saudi Country Ambassador for Pearson.
The report suggests that infrastructure is no longer a major challenge. Only 4% of Saudi higher education leaders cited inadequate computing infrastructure as a barrier to AI readiness, compared with a 21% global average. Instead, institutions identified faculty AI capability, the pace of technological change, and evolving employer expectations as more pressing concerns.
While employers generally expressed satisfaction with graduate quality, many reported difficulties finding enough qualified candidates. The study found that Saudi employers face the highest shortage of suitable graduate candidates among the six markets surveyed.
Students, meanwhile, indicated a need for greater practical experience. One-third of learners expressed dissatisfaction with opportunities for hands-on AI application, despite having access to AI tools and guidance. The report found that exposure to workplace-relevant projects, structured exercises and work-integrated learning remains limited.
“Translate AI tool engagement into real workplace capability,” said Kim Majerus, Vice President of Global Education and U.S. State and Local Government at AWS, describing the next challenge for educators and employers.
Across all six markets, 67% of respondents said workplace transformation driven by AI is occurring extremely or very quickly, while only 24% believe universities are keeping pace with most or all of these changes. More than half of employers globally (53%) reported difficulty finding graduates with the right skills.
The report concludes that Saudi Arabia has made significant progress in aligning education with workforce needs, supported by strong institutional investment and employer collaboration. However, it argues that the next phase of development should focus on expanding practical, industry-linked learning experiences that help graduates convert AI knowledge into workplace performance.