Building a resilient generation in Ƶ’s economy 
Living longer, healthier and more meaningful lives is now a reality, driven by advances such as wearable technology that empowers individuals to enhance their well-being.
This shift indicates a global “longevity revolution,” offering societal transformation and economic opportunities. The challenge lies in ensuring that these additional years are productive and impactful. For Ƶ, this revolution presents a unique chance to foster a resilient generation capable of driving sustained economic and social progress.
Population aging, an irreversible trend, demands that we rethink workforce productivity, healthcare, and social systems. Improved living conditions and medical breakthroughs are reshaping economies and societies, requiring countries to act swiftly and strategically. This shift raises a critical question: How can countries and economists transform aging into an engine of economic growth and societal resilience, especially as declining fertility rates reshape population dynamics?
In 2024, about 10 percent of the global population — 800 million people — are aged 65 or older. By 2050, this figure is projected to more than double to 1.6 billion, meaning one in six people will belong to this age group. The number of people aged 80 and above is increasing even faster, according to the World Social Report 2023 and the 2024 World Population Data Sheet.
These demographic shifts are further compounded by significant changes in fertility patterns. While the total fertility rate varies significantly across countries, the global fertility rate has more than halved, from five live births per woman in the 1960s to 2.2 today, contributing to a sharp decline in population growth rates worldwide. Simultaneously, global life expectancy has risen to 73.3 years in 2024, reflecting an 8.4-year increase since 1995. These rapid demographic changes demand a fundamental shift in economic perspectives, as traditional models reliant on population-driven growth may no longer suffice.
Building on these trends, by the late 2070s, the global population aged 65 and older is projected to reach 2.2 billion, outnumbering children under 18. This unprecedented transformation necessitates economic strategies that prioritize inclusive growth, leveraging technology to enhance productivity across all age groups. Countries must actively support multigenerational workforces and adapt policies to extend working lives for those willing and able, ensuring sustainability and resilience. These shifts, as highlighted by the World Population Prospects 2024 and others, present not just challenges but opportunities to redefine economic frameworks in an era of profound demographic evolution.
While these global demographics shift toward increased longevity, Ƶ — with a population surpassing 32 million and projected to increase to more than 47 million by 2050 — is uniquely positioned to harness the opportunities presented by an aging demographic. The Kingdom is poised to play a pivotal role in shaping its longevity economy, leveraging strategic investments and forward-thinking policies to prepare for a future where older adults will constitute a larger share of society.
Life expectancy in the Kingdom has risen from an average of 51.69 years in 1969 to 77.6 in 2023, with Vision 2030 targeting 80 years by 2030. Meanwhile, Ƶ’s fertility rate in 2024 is 2.1 live births per woman, slightly below the global average of 2.2, reflecting a broader global trend of declining fertility rates that contribute to an aging population.
While 86 percent of Saudis are aged 15-64, only 3.3 percent are 65 or older, highlighting the Kingdom’s substantial healthcare investments and public health initiatives to match the anticipated demographic shift toward an aging population. This requires strategies that promote healthy aging and economic participation among older adults.
The Kingdom is poised to play a pivotal role in shaping its longevity economy, leveraging strategic investments.
One of the critical steps Ƶ has taken is to increase the retirement age to 65 years, acknowledging the need to keep experienced professionals in the workforce longer. This policy shift not only addresses the economic implications of an aging population but also taps into the wealth of knowledge and expertise that older citizens offer. By embracing the concept of active aging, the Kingdom is fostering a culture where longevity contributes positively to economic growth and social development.
The Kingdom’s strategic longevity ambitions are not merely about living longer, but about living healthier, more productive and rewarding lives, contributing positively to the economy while enabling individuals to realize their highest potential. By fostering active aging, the Kingdom taps into the wisdom and expertise of its older population, creating opportunities for innovation and growth while addressing the challenges of an aging demographic.
The longevity economy is not just about health — it is about economic transformation. Economist Andrew J. Scott describes this paradigm as a redefinition of traditional economic structures to leverage extended productive years, resulting in growth across sectors such as biotechnology, healthcare, and education.
A longevity economy expands opportunities for employment and innovation, fostering new financial products and services to support longer lives. Globally, it is projected to contribute $56 trillion in economic opportunities, with the potential to generate an additional 4 percent in gross domestic product for many countries. Ƶ’s investments in these areas are positioning it as a global leader in adapting to this shift, ensuring intergenerational equity while driving innovation.
The Hevolution Foundation is a key player in this landscape. Under the patronage and leadership of Crown Prince Mohammed bin Salman, who is chairman of the board of trustees, the foundation embodies the Kingdom’s commitment to protect and enhance the quality of life for its citizens in alignment with Vision 2030. With an annual budget of up to $1 billion, the foundation exemplifies the Kingdom’s intent to foster a society where longevity is met with quality of life.
By funding research in aging and early-stage biotechnology, Hevolution not only minimizes age-related diseases, but also reduces healthcare burdens while creating new economic opportunities. This focus on preventive healthcare and personalized medicine aligns with the global shift away from disease-centric approaches, recognizing the profound economic benefits of healthier aging populations. Investments in sectors that support healthy aging not only drive innovation but also enhance social perceptions of aging, recognizing the value and potential of older individuals. This combats ageism and fosters inclusivity, ensuring that older adults are seen as valuable contributors to society.
Ƶ’s commitment extends beyond healthcare. The Kingdom is investing heavily in education technology and lifelong learning programs, empowering its citizens to adapt and thrive in evolving industries.
Reskilling older adults ensures they remain active contributors to the workforce, fostering a dynamic and multigenerational economy. Moreover, initiatives promoting inclusivity and social connection across age groups underscore a vision of purpose-driven living, where economic resilience is paired with social well-being, enabling citizens to remain dynamic and adaptable at any age.
The World Economic Forum’s six principles for a longevity economy offer a roadmap that aligns seamlessly with Ƶ’s approach. These principles emphasize financial stability during life transitions, universal access to financial education, prioritize healthy aging, and foster systems that promote social connection and purpose. By adopting these strategies, Ƶ not only addresses the immediate needs of its aging population but also positions itself as a model for economic and social innovation.
At this transformative juncture, Ƶ is seizing the opportunity to lead the global longevity economy. Through initiatives such as the Hevolution Foundation, visionary policies, and strategic investments, the Kingdom is poised to redefine what it means to grow older in the 21st century. By proactively embracing the challenges of an aging population, Ƶ can foster sustainable economic growth, enhance the well-being of its citizens, and set a precedent for other countries. The journey ahead promises a future where extended lifespans are not just a challenge to overcome, but a catalyst for prosperity, innovation, and resilience.
• Hamad S. Alshehab is pursuing a master’s degree in finance at London Business School. He was the lead for strategy, finance and governance at Aramco’s Innovation and Product Development Center, LAB7, and has experienced in areas including control systems, digital transformation, entrepreneurship and innovation.
• Hassan M. Alzain is pursuing a master’s degree in environmental management at Yale University. He led the Environmental Science, Sustainability and Policy Group at Aramco’s environmental protection department. He has experience in sustainability reporting, climate policy, environmental technology and data assurance.
