Saudi companies are cutting back the hefty salary premiums that previously helped attract top foreign professionals to sectors like construction and manufacturing, recruiters told Reuters. As the kingdom tightens spending and shifts economic priorities midway through its Vision 2030 programme, once-common pay boosts of 40% or more for overseas hires are becoming rare.
Saudi Arabia’s massive investment in multibillion-dollar megaprojects had driven strong demand for highly skilled expatriates, but delays and execution challenges have slowed recruitment. Employers are now offering more modest packages amid a growing supply of candidates interested in moving to the region, said Magdy Al Zein of Boyden.
The shift aligns with a broader strategy by the Public Investment Fund, which is reducing its focus on infrastructure-heavy projects and placing more emphasis on higher-return sectors such as AI, logistics and mining. Projects like NEOM and Trojena face delays as cost discipline increases.
Where UAE-based project managers once received offers of around $100,000 to move to Saudi Arabia—far above typical UAE pay—salary growth has flattened as project activity weakens and the fiscal deficit widens due to lower oil prices.
Recruiters report that companies are now more cost-conscious, prioritising roles in fast-growing digital and AI fields. The UAE remains a strong magnet for skilled expats thanks to tax-free salaries, international schools, healthcare and social freedoms. Pay levels between the UAE and Saudi Arabia now differ by only about 5–8%, making it harder to lure talent from Dubai or Abu Dhabi.
Still, Saudi Arabia’s stronger economic outlook and labour market reforms continue to draw interest from outside the region. Rising Saudi participation in the private sector has increased competition for jobs, as unemployment among nationals hits record lows.
According to Matches Talent CEO Louise Knutsson, Saudi employers are shifting toward data-driven, performance-linked compensation. While some see this as a reduction, she says it reflects a maturing market. To attract top talent, companies will need to offer reliable packages aligned with living costs, family-friendly conditions and a clear mission tied to the scale of Saudi Arabia’s transformation.
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