The global demographic landscape is undergoing a significant transformation, characterized not by a population boom in terms of numbers, but by an increase in the aging population. Within both the United States (US) and Europe, citizens are becoming older with the median age increasing. Projections indicate that by 2050 the proportion of the global population that will be 80 years of age or older will reach 5%, a notable increase from the 2% in 2020. This aging is largely due to declines in fertility rates, which typically offset the older ages that make up a group of citizens. Without these continued rates, this balance will be disrupted, contributing to the aging trend observed in many countries.
Looking specifically at the European Union (EU), it can be noticed that the same aging pattern is occurring. Fertility rates are declining, the working age population is decreasing, and population growth is slowing. This has raised concerns about the current social and economic model the EU is following, as many believe it will not be able to sustain the welfare practices or the productivity of the labor markets. As more people age, the financial burden on the working population will intensify, as they will require help to pay for growing pensions through increased taxation. Within the EU, one in three people live in a region where the population has declined over the last decade. Italy itself is home to seven of the top 15 highest median age population regions within the continental EU. As a result, countries are scrambling to find solutions to this growing issue. If fertility rates continue to decline and the labor force diminishes, countries will not be able to sustain their economies or offer services to the populations that need them.
The Gulf Cooperation Council (GCC) countries, however, are experiencing the opposite issue to the rest of the world. Besides the continent of Africa, the Middle East and GCC countries are the only regions that have a growing younger population. The GCC has one of the fastest growing populations in the world, with a little over 50% under the age of 25. This is expected to decrease to around 36% by 2050.
In 2022, the median ages in Kuwait (29.7 years), Oman (26.2 years), Saudi Arabia (30.8 years), Bahrain (32.9 years), and Qatar (33.7 years) were all below 35 years of age. The outlier in the GCC is the United Arab Emirates (UAE) with a median age of 38.4 years. This is a stark contrast to the US, whose median age is 38.9 years (2023), which was 0.2 years higher than the age in 2022. In the European Union the median age was 44.5 years, a 2.3-year increase from 2013. This demographic growth presents both challenges and opportunities for the GCC.
Despite that, the GCC countries are experiencing declining fertility rates. This is largely due to an increased focus on education and family planning by citizens. Not including the country of Oman, all GCC countries experienced fertility rates that declined by 50% through the years 2003 to 2018. This could be connected to the increased costs of living, educational opportunities for women, and rise in the average age that people marry. These are not changes that should be discouraging, though. Some GCC countries have less than 6% of their population above the age of 65. With a larger young population, the declining rates will help to balance out and mitigate the phenomena’s effects. A growing population also places pressure on countries’ urban areas. The more citizens there are, the more popular living in urban cities becomes, especially when the population is younger and has desires to work in a city. These declining fertility rates and increased pressure on urbanisation spark fear and worry at first glance. Yet, this urban growth also paves the way for social, economic, and political innovations.
On a broad scale, the GCC has a chance to learn from Western nations about managing welfare systems to withstand an aging population. There are around 80 working age people supporting one non-working age person in the GCC. However, as the younger generation ages, this ratio is expected to drop to three working age people supporting one non-working aged person. This means that the GCC should start focusing on welfare reforms now.
Europe and the United States are struggling to combat worries about their welfare systems, which has placed them in a spot to start conjuring ideas with economists and welfare experts. The GCC, however, is not yet in such a dire position, which allows the nations to learn from the mistakes Europe and the US make when attempting to construct new systems that can withstand a growing, aging population. Proactive measures are essential. Nations should not wait until issues become crises; instead, they should act at the first sign of potential problems. This forward-thinking approach can foster a more sustainable way of life for the future.
As mentioned, when countries start to become younger, nations’ citizens will become more technologically savvy, internationally well-rounded, and ambitious in their endeavors. This leads to changes in social, political, and economic life. The GCC countries have started to experience these changes, forcing the nations to adapt with their ever-changing population. The nation of Saudi Arabia, for example, is one country in the GCC that has taken initiative on this front through their Vision 2030 project. The country intends to enhance the nation and make it more prosperous domestically and internationally.
The Vision 2030 project has programs that seek to transform their society through implementing entertainment, sporting, and artistic events. The Sports Boulevard initiative aims at providing citizens an area to practice a healthy lifestyle. This includes activities such as walking, biking, and horse riding and extends for 135 kilometers. On the economic front, goals have been set out to create more jobs and sustain economic growth. Providing more opportunities for access to education and jobs, specifically to women, is a key pillar in the Vision 2030 project. Since the start of the project, unemployment has fallen to 7.7% in 2023, which is vastly different to the 12.6% unemployment rate in 2016. The participation of women in the workforce has also increased to 35.5%, with many assuming leadership roles.
These plans align with the strategies necessary for managing a youthful society. Saudi Arabia’s Vision 2030 project will allow the nation to be a step ahead of the social changes that will occur as the younger population evolves with the world.
The GCC nations should embrace the new ideas and customs the younger generation is attempting to implement. Not only will it create a more prosperous way of living domestically, but it will also enhance a nation’s standing on the international scale. The GCC has an advantage over both Europe and the United States in a way it has never seen before. By supporting and integrating the aspirations of their youth, these countries can secure a competitive edge and drive substantial economic, social, and cultural advancements.
Endnotes:
1 Eurostat. 2024 Feb 15. EU median age increased by 2.3 years since 2013. Eurostat; https://ec.europa.eu/eurostat/web/products-eurostat-news/w/ddn-20240215-1#:~:text=On%201%20January%202023%2C%20the,when%20it%20was%2042.2%20years.
2 Ang Carmen. 2021 Jun 16. Visualizing the World’s Population by Age Group. Visual Capitalist; https://www.visualcapitalist.com/the-worlds-population-2020-by-age/#:~:text=In%202020%2C%20more%20than%20147,1.9%25%20of%20the%20global%20population
3 Bloom DE, Zucker LM. 2023 Jul 11. Aging is the Real Population Bomb. International Monetary Fund.
4 D’ambrogio E. Cohesion and ageing society in the EU. European Parliamentary Research Service; https://www.europarl.europa.eu/RegData/etudes/BRIE/2023/747104/EPRS_BRI(2023)747104_EN.pdf
5 Visco I. Welfare Systems, Ageing and Work: an OECD Perspective. OECD; https://www.bancaditalia.it/dotAsset/1f4308cf-2616-4c72-873f-c87956135a9d.pdf
6 D’ambrogio E. Cohesion and ageing society in the EU. European Parliamentary Research Service.
7 Abdulrazak Abyad, Demographic Changes in the GCC Countries: Reflection and Future Projection. 2018; 15(1):20-24. DOI: 10.5742/MEJAA.2018.93292
8 Cordesman AH, Cormarie P. 2022. Demographic Change in the Arab/Persian Gulf: A Case Study by Country. Center for Strategic and International Studies :54. https://csis-website-prod.s3.amazonaws.com/s3fs-public/publication/220829_Cordesman_Arab_Demographics_0.pdf?VersionId=sTrtxzjFRq8lqGm4WeW85OgbyP_Je9LM
9 United States Census Bureau. 2023 Jun 22. America Is Getting Older. United States Census Bureau; https://www.census.gov/newsroom/press-releases/2023/population-estimates-characteristics.html
10 Eurostat. 2024 Feb 15. EU median age increased by 2.3 years since 2013. Eurostat; https://ec.europa.eu/eurostat/web/products-eurostat-news/w/ddn-20240215-1#:~:text=On%201%20January%202023%2C%20the,when%20it%20was%2042.2%20years.
11 Abdulrazak Abyad, Demographic Changes in the GCC Countries: Reflection and Future Projection. 2018.
12 Flaiti AA. Demographics Of the GCC – Understanding The Changes In The Local Population. ISI; https://www.isi-next.org/abstracts/submission/746/view/#:~:text=All%20countries%20in%20the%20GCC,and%20marriage%20rates%20are%20declining
13 Abdulrazak Abyad, Demographic Changes in the GCC Countries: Reflection and Future Projection. 2018.
14 Ibid.
15 The Kingdom of Saudi Arabia. Saudi Vision 2030.Vision 2030; https://www.vision2030.gov.sa/en/
16 The Kingdom of Saudi Arabia. Dynamic Society. Vision 2030; https://www.vision2030.gov.sa/en/progress/dynamic-society/
17 Al-Barakati M. 2024 Apr 24. Eight years since its launch, Saudi Vision 2030 is already well ahead of schedule. Arab News; https://www.arabnews.com/node/2498896/business-economy