Saudi Salary Shift: Reimagining the Talent Market Amid Economic Pivot

Saudi firms are reducing generous salary premiums for foreign talent amid a broader economic transformation. While Vision 2030 fosters sectors like AI and logistics, competition for jobs intensifies, with offers becoming more competitive, especially compared to the UAE, dampening expectations for lucrative premiums.

Saudi Arabian companies are scaling back the generous salary premiums traditionally offered to attract foreign talent in sectors like construction and manufacturing, as spending priorities shift and economic goals realign under Vision 2030.

The world's largest oil exporter, Saudi Arabia is halfway through its Vision 2030 blueprint aimed at reducing hydrocarbon dependency and expanding other industries. The kingdom has poured resources into multi-billion-dollar megaprojects, driving demand for skilled foreign labor, but delays and execution issues persist.

With a large pool of available talent and a strategic pivot towards AI, logistics, and mining, salary packages have become more competitive. The Public Investment Fund is redirecting focus, impacting sectors like NEOM and Trojena. Meanwhile, cost-conscious measures and rationalization are reshaping job offers and recruitment dynamics in Saudi Arabia.

(With inputs from agencies.)