Saudi Arabia took a big leap forward in transforming its pension system with the recent announcement of comprehensive reforms, designed with support from the World Bank, aimed at enhancing income protection during old-age, but also promoting gender equality. Aging populations, caused by increasing life expectancy and falling fertility rates, combined with the changing nature of work and the erosion of informal and traditional family support systems, have created considerable challenges for pension systems worldwide. Many are facing fiscal sustainability pressures and adequacy concerns, including in the Middle East and North Africa (MENA) region. Pension reform is always difficult due to the political economy challenges, which is why this comprehensive pension reform in Saudi Arabia is such a breakthrough. It truly sets a new benchmark for the MENA region, addressing critical issues such as retirement age, maternity leave, and social insurance coverage.

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