Saudi Arabia is scaling back the high salary premiums that once made it a magnet for global professionals, as companies adjust hiring strategies in response to shifting economic priorities and tightening public spending. Recruiters say the kingdom is moving away from the aggressive recruitment phase that accompanied major megaproject launches under Vision 2030.
For years, foreign talent could expect pay packages 40–100 per cent higher than in neighbouring Gulf markets. That gap has narrowed sharply. Roles that once commanded a steep premium over salaries in the UAE are now reportedly seeing only a 5–8 per cent difference. The shift reflects a cooling in megaproject activity and a more cautious fiscal outlook.
Saudi Arabia’s massive Public Investment Fund drove a hiring boom in real estate, construction and tourism development. But execution delays in landmark projects—such as the planned NEOM city—have pushed employers to reassess their workforce needs. Investments are increasingly being diverted toward higher-return sectors including artificial intelligence, mining, advanced manufacturing and logistics.
The slowdown comes against the backdrop of lower oil revenues and a widening fiscal deficit, even as the kingdom continues output cuts to help stabilise global oil prices. With more expatriates open to relocating and a 31 per cent rise in Saudi nationals employed in the private sector since 2016, competition for roles has intensified.
What feels like reduced opportunity to some, is actually a sign that the labour market is becoming more disciplined and sustainable.