9 months ago
Saudi Arabia Slashes Salary Premiums for Foreign Talent Amid Hiring Slowdown
Saudi Arabia used to give big extra paychecks, sometimes doubling salaries, to get skilled workers from other countries to come work on giant projects.
But now, the country is spending less money because oil prices are lower.
They are also changing their plans and focusing more on new areas like artificial intelligence and mining instead of those huge construction projects.
Because of this, they are offering much smaller extra payments to new workers.
Some jobs in new tech fields still pay very well, but for many other jobs, the extra pay is much less than before.
This also comes as more Saudi citizens are getting jobs in the private sector, leading to more competition.
Saudi Arabia is significantly reducing salary premiums previously offered to attract foreign talent.
This shift is driven by tightened spending, lower oil revenues, and a pivot away from megaprojects towards AI, mining, and logistics.
Foreign professionals can no longer expect the 40%-100% pay bumps that were common in previous years.
The slowdown in hiring and offers is linked to delays in megaprojects and a widening fiscal deficit.
While overall hiring has slowed, high-demand roles in AI and digital sectors continue to command aggressive pay.
- Who
- Saudi companies and foreign professionals
- What
- Saudi Arabia is significantly reducing generous salary premiums for foreign talent as hiring slows.
- Where
- Saudi Arabia
- When
- Ongoing, with noticeable shifts in recent times and project awards halving in the first nine months of 2025.
- Why
- To curb spending amid lower oil revenues and a widening fiscal deficit, and to pivot investment priorities from megaprojects towards sectors like AI, mining, and logistics.
Employers Rethinking Packages
Recruiters' Observations
Salary Premiums
Employers Rethinking Packages
Employers are significantly rethinking and reducing salary premiums, with foreign recruits no longer expecting the 40%-100% pay bumps that were common earlier this decade.
Recruiters' Observations
Offers are far more restrained now, with recruiters noting a large supply of candidates open to relocating and the kingdom rationalizing its spending, leading to more measured packages.
Market Maturity vs. Contraction
Employers Rethinking Packages
The shift towards more measured packages, anchored to data and market benchmarks, signals maturity in the Saudi labor market.
Recruiters' Observations
For some, this reduction in premiums feels like a contraction, as companies are negotiating salaries more due to cost-conscious measures and a greater supply of skilled labor.
Demand for Talent
Employers Rethinking Packages
The hiring spree driven by Vision 2030 has slowed due to project delays and shifting investment priorities.
Recruiters' Observations
Only 'hot jobs' in sectors like AI or digital are still commanding aggressive pay, indicating a more targeted demand for specific skills.
Key facts
- Vision 2030 Plan
- A plan to diversify the Saudi economy, previously triggering a hiring surge.
- Public Investment Fund (PIF)
- $925 billion fund shifting investment priorities from megaprojects to AI, mining, and logistics.
- Megaprojects Mentioned
- NEOM ($500 billion city) facing execution delays.
- Past Salary Premiums
- 40%-100% pay bumps for foreign professionals.
- Current Salary Trend
- Premiums scaled back; job paying $60,000 in UAE might fetch $63,000-$64,800 in Saudi Arabia (5-8% difference).
- Saudi Citizen Employment Growth
- 31% increase in Saudis in the private sector since 2016.
- Economic Context
- Lower oil revenues and a widening fiscal deficit impacting public finances.
- Project Awards
- Nearly halved in the first nine months of 2025.
Quotes
Magdy Al Zein
managing director at Boyden
“Employers are rethinking packages. That definitely has happened. There’s now a big supply of candidates open to relocating, while the region’s biggest economy is rationalising.”
businesstoday.in
Louise Knutsson
CEO of Matches Talent
“Packages are now far more measured. For some, that feels like contraction. For me, it signals maturity.”
businesstoday.in
