Saudi Reduces Salaries for Foreign Talent Amid Cost-cutting Drive 

Saudi firms are scaling back generous salary premiums that once lured top foreign talent into sectors such as construction and manufacturing as the kingdom reins in spending and reorders economic priorities, four recruiters told Reuters.

Saudi Arabia, the world’s top oil exporter, is more than halfway through its economic transformation blueprint, known as Vision 2030, aimed at reducing dependence on hydrocarbon income, creating jobs, and expanding industries such as tourism, real estate, mining and financial services.

As part of the long-term plan, the kingdom has invested massively in multi-billion-dollar megaprojects, vastly increasing demand for high-skilled foreign workers, but has struggled with execution and delays.

Foreign recruits should no longer expect to negotiate premiums of 40 per cent or more, to sometimes even double their existing salaries, which were common earlier this decade, two of the sources said, with offers far more restrained now.

“On the one hand you have the region’s biggest economy rationalising and on the other side, you have a huge supply of candidates who are very open to coming to the region,” said Magdy Al Zein, Managing Director at recruiter Boyden. The change reflects a broader pivot by Saudi Arabia’s $925 billion Public Investment Fund, which took a sizeable hit on its infrastructure and real estate-heavy megaprojects, towards sectors such as AI, logistics and mining, seen as offering better returns.

“Saudi Arabia hired heavily for the megaprojects, targeting international talent with skills scarce in the local workforce. Project managers in the neighbouring United Arab Emirates, for example, could get offers of around $100,000 in Saudi Arabia for roles that paid $60,000 in the UAE, “said Hasan Babat, CEO of Dubai-based Tuscan Middle East, a recruitment consultancy.