Saudi Arabia is scaling back the high salaries that once attracted top foreign talent, as the country refocuses its economy and cuts costs, recruiters say.
Shift in Economic Focus
The kingdom is more than halfway through its Vision 2030 plan, which aims to reduce reliance on oil, create jobs, and grow sectors like tourism, real estate, mining, and financial services. Massive investments in mega-projects, including the $500 billion NEOM city and the mountain tourism hub Trojena, initially boosted demand for skilled foreign workers.
However, delays and cost pressures have forced Saudi firms to rethink generous salary offers. Foreign recruits can no longer expect the 40%–100% salary increases common in the past.
“Employers are re-evaluating packages. That definitely has happened,” said Magdy Al Zein, managing director at Boyden.
Focus on AI, Logistics, and Mining
The Public Investment Fund (PIF), which backs projects like NEOM, is now prioritizing sectors expected to offer higher returns, such as artificial intelligence, logistics, and mining.
Previously, project managers in Saudi Arabia could earn nearly double what they would in the UAE, but today, salary differences are much smaller—about 5–8% higher than the UAE on average.
“Convincing people to move from the UAE is a challenge because they expect a high premium,” Al Zein added.
Competition for Jobs Rising
Saudi Arabia’s economic reforms and initiatives to increase citizen participation in the private sector have raised competition for jobs. Unemployment among Saudi citizens is at historic lows, and more Saudis are working in private companies.
Recruiters note that salary packages are now data-driven and performance-based, signaling a more mature job market.
“For companies to attract the best talent, they need to offer predictable salaries, a balanced lifestyle for families, and a clear purpose connected to the scale of projects,” said Louise Knutsson, CEO of Matches Talent in Dubai.
Why Saudi Arabia Still Attracts Talent
Despite slower growth in mega-projects, Saudi Arabia remains appealing to workers from regions with slower job markets. The kingdom is expected to grow 4.4% in 2025, providing opportunities for those willing to relocate.
