[Saudi Arabia] Premium salaries for foreign workers cut

In Saudi Arabia, salary premiums offered to foreign workers are set to be significantly reduced as the kingdom adjusts its economic priorities and implements cost-conscious measures across major development projects, DLA Piper reports.

According to recruitment specialists, foreign workers should not expect to see the 40 per cent or higher salary premiums of recent years. 

Major development projects, including the planned futuristic city NEOM, are being delayed as the kingdom pursues a rationalisation programme.

Current salary differentials between Saudi Arabia and the UAE have narrowed significantly, new positions are now reportedly offering just 5-8 per cent higher compensation on average. 

Such reductions are particularly affecting sectors including construction and manufacturing. Opportunities in AI and digital technologies still have competitive salaries.

Saudi Arabia's citizen unemployment rate is at a historic low, leading to a larger pool of local candidates for positions previously filled by expatriates.

The kingdom’s economic transformation plan is continuing to target reduced dependence on oil revenue through expansion in tourism, real estate, mining, and financial services. But the implementation of such initiatives now reportedly comes with a greater focus on cost control and sustainable compensation structures.

Source: DLA Piper

In Saudi Arabia, salary premiums offered to foreign workers are set to be significantly reduced as the kingdom adjusts its economic priorities and implements cost-conscious measures across major development projects, DLA Piper reports.

According to recruitment specialists, foreign workers should not expect to see the 40 per cent or higher salary premiums of recent years. 

Major development projects, including the planned futuristic city NEOM, are being delayed as the kingdom pursues a rationalisation programme.

Current salary differentials between Saudi Arabia and the UAE have narrowed significantly, new positions are now reportedly offering just 5-8 per cent higher compensation on average. 

Such reductions are particularly affecting sectors including construction and manufacturing. Opportunities in AI and digital technologies still have competitive salaries.

Saudi Arabia's citizen unemployment rate is at a historic low, leading to a larger pool of local candidates for positions previously filled by expatriates.

The kingdom’s economic transformation plan is continuing to target reduced dependence on oil revenue through expansion in tourism, real estate, mining, and financial services. But the implementation of such initiatives now reportedly comes with a greater focus on cost control and sustainable compensation structures.

Source: DLA Piper