Saudi Arabia Scales Back Expat Salary Premiums as Vision 2030 Priorities Shift

Saudi companies are reducing the generous salary premiums that once attracted top foreign talent, especially in construction, manufacturing, and other fast-growing industries. Recruiters say the shift comes as Saudi Arabia tightens spending and redirects investment priorities under its Vision 2030 economic transformation plan.

For years, the kingdom offered lucrative packages—often 40% higher than candidates’ existing salaries—to fill skill gaps for massive megaprojects such as NEOM and Trojena. These initiatives fueled a surge in demand for international expertise but have recently encountered delays and escalating costs. With project awards slowing significantly in 2025 and public finances pressured by lower oil prices, employers are becoming more conservative, offering more realistic and data-driven compensation.

Recruitment specialists report that foreign workers can no longer expect the steep salary increases common earlier in the decade. Companies are now negotiating more cautiously, influenced by a growing pool of willing candidates and an increased focus on cost efficiency. While salaries in Saudi Arabia once stood far above those in the UAE, recruiters say the average difference is now just 5–8%, making it harder to lure workers from the UAE’s competitive, tax-free environment and established expatriate infrastructure.

The Public Investment Fund is also pivoting from real estate–heavy megaprojects toward higher-return sectors such as AI, digital technologies, logistics, and mining. As a result, current hiring is prioritizing these “hot jobs,” where budgets remain more flexible.

Despite these shifts, Saudi Arabia continues to attract global talent thanks to stronger economic growth compared to many other regions. Labour reforms have expanded opportunities for citizens, intensifying competition for roles as unemployment hits record lows. Experts say the evolving salary landscape reflects a more mature, sustainable market—one where workers seek clarity on compensation, lifestyle, and long-term purpose rather than short-term premium offers.