Saudi Arabia is slashing the generous salary premiums that once drew top global talent, as the kingdom tightens spending and pivots away from its megaproject-driven hiring spree, recruiters told Reuters.
Foreign professionals eyeing Saudi Arabia can no longer count on the 40%–100% pay bumps that once made the kingdom one of the Gulf’s most lucrative job markets. Recruiters say employers are rethinking offers amid delays in megaprojects, shifting investment priorities, and a widening fiscal deficit.
“Employers are rethinking packages. That definitely has happened,” said Magdy Al Zein, managing director at Boyden. “There’s now a big supply of candidates open to relocating, while the region’s biggest economy is rationalising.”
Saudi Arabia’s Vision 2030 plan, backed by its $925 billion Public Investment Fund (PIF), triggered a hiring surge in sectors like construction and real estate. But as projects like the $500 billion NEOM city face execution delays, the PIF is pivoting toward sectors with higher returns—such as AI, mining, and logistics.
Recruiters say offers for roles once padded with premiums have tightened sharply. A job paying $60,000 in the UAE might have previously fetched $100,000 in Saudi Arabia—today, that spread is down to 5–8%.
The slowdown comes as Saudi Arabia wrestles with lower oil revenues and a fiscal deficit, even while curbing oil output to support global prices. The IMF estimates the kingdom needs oil at nearly $100 a barrel to balance its budget.
Job activity has stalled—project awards nearly halved in the first nine months of 2025, according to Kamco Invest. Now, only “hot jobs” in AI or digital are commanding aggressive pay, according to Tuscan Middle East’s October salary report.
While Saudi Arabia’s growth forecast remains strong at 4.4%, its labour market is also tightening. The number of Saudis in the private sector has grown 31% since 2016, increasing competition for roles.
“Packages are now far more measured,” said Louise Knutsson, CEO of Matches Talent. “For some, that feels like contraction. For me, it signals maturity.”
