At a glance
- Saudi Arabia has significantly reduced salary premiums for expatriate workers as part of cost-control measures in major projects.
- Premiums of 40% or more, common in recent years, have dropped to an average of 5–8% above UAE levels.
- The reduction particularly impacts construction and manufacturing, while roles in AI and digital technology remain competitive.
- Delays in flagship projects like NEOM reflect a broader rationalisation programme and focus on sustainable compensation.
- Falling unemployment among Saudi citizens has expanded the local talent pool for roles previously filled by expatriates.
Saudi Arabia has significantly reduced salary premiums offered to foreign workers as the kingdom adjusts its economic priorities and implements cost-conscious measures across major development projects.
Recruitment specialists report that foreign workers can no longer expect the 40% or higher salary premiums that were common in recent years. Major development projects, including the planned futuristic city NEOM, are experiencing delays as the kingdom pursues a rationalisation programme.
Current salary differentials between Saudi Arabia and the UAE have narrowed significantly, with new positions offering only 5-8% higher compensation on average. The reduction in premium payments particularly affects sectors such as construction and manufacturing, while opportunities in artificial intelligence and digital technologies remain competitive.
The kingdom's citizen unemployment rate has reached historic lows, creating a larger pool of local candidates for positions previously filled by expatriates.
Saudi Arabia's economic transformation plan continues to target reduced dependence on oil revenue through expansion in tourism, real estate, mining, and financial services. However, the implementation of these initiatives is now proceeding with greater focus on cost control and sustainable compensation structures.
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