Annual salary increases in Saudi Arabia will be from 2 per cent to 5 per cent this year tied to the performance of employees as the kingdom becomes extremely competitive with a huge influx of talent, recruitment consultants say.
For people changing jobs, the increase in a salaries is not as big as it was in the past. People expect a jump of “two, three, sometimes 4x their salary” when they take up a new job in the kingdom but that no longer is the case, says Domenic Falzarano, regional director of global recruitment consultancy Michael Page Saudi Arabia.
“We're seeing increments somewhere in the range of 10 per cent to 20 per cent on candidates’ current packages for new jobs. Multinational companies are reducing how much they're able to offer in terms of increments due to what's happening in global economies,” he says.
“Another trend we are seeing is that when candidates resign, companies are more inclined to … retain them [with higher salaries], because they know the cost to fill that position.”
Explore the trends: Saudi Arabia salary guide insights
Saudi Arabia has become a magnet for companies seeking to expand businesses in the Middle East as the kingdom pursues its ambitious Vision 2030 economic diversification plan.
Multinational companies, financial institutions, consultancies, private equity companies, investment houses and law companies have established regional headquarters in Riyadh to secure government business and contracts. Megaprojects such as the $500-billion futuristic city of Neom are also fuelling demand for talent. Saudi Arabia has also made significant strides in becoming a family-friendly destination by investing in international schools, cultural hubs and modern infrastructure.
Big talent influx
Mr Falzarano says the talent influx is very evident in the kingdom as about seven to eight years ago, recruiters had to sell the opportunities for candidates to relocate to Saudi Arabia. Now, they are inundated with candidates that reach out from around the world looking for opportunities in the kingdom.
More and more people are bringing their families, too, and the local market is trying to keep up in terms of real estate supply and schools, he says.
“Europe continues to be a strong market for candidates. We also see a big demand for candidates out of North America, certainly the US,” he says.
The demand for Saudi citizens has also increased over the past two to three years, and there is a big push to get them into key positions within government and semi-government organisations.
UAE salary guide 2025
However, the trend of professionals moving from the UAE, the second-largest Gulf economy, to Saudi Arabia is not as strong as it was three to four years ago as the Emirates’ job market itself has strengthened significantly over the years. The smaller salary increments now prevalent in the kingdom are also dissuading most executives with jobs in the UAE from seeking fresh opportunities in the kingdom, he explains.
However, some in the UAE talent pool are still interested in the Saudi market “to work for one of the Public Investment Fund projects, a new airline, or a new automotive company”, Mr Falzarano says.
“The flights to Riyadh are still very, very busy with people flying back and forth to the kingdom. This isn't just from the UAE. There's been a movement of talent from Jeddah in particular and the Eastern Province to Riyadh, where the big opportunities are.”
Which sectors are hiring?
Energy continues to be a strong sector for jobs in Saudi Arabia, but other industries are catching up. Real estate continues to be a leading sector for job creation as the country develops giga projects. There is a high demand for real estate staff, and in particular candidates that have worked on large-scale projects, Mr Falzarano explains.
It is closely followed by technology as the kingdom continues to push for its digital transformation.
“Some of the newer sectors that we saw emerging last year were sports and entertainment, with the kingdom hosting the Asian Cup in 2027, the Fifa World Cup in 2034 and the World Expo 2030. The other one is hospitality, with more tourists visiting the kingdom and more hotels coming online. We've seen a big demand for hospitality staff,” he says.
“In real estate, the biggest demand is for candidates with front-end development experience, be it feasibility studies or master plans. Within marketing, there is huge demand for destination marketing candidates. In technology, we see a big demand for candidates with experience in cyber security and artificial intelligence.”
Aviation and defence are two other sectors with significantly high job demand, says Anil Kumar Singh, senior vice president and country lead at staffing and human resources solutions company TASC Outsourcing.
From a national budget perspective, there is a lot of investment happening in these sectors. There is the impending launch of Riyadh Air, plus commercial airlines like Saudia, Flynas and Flyadeal are also expanding their capacity, he says.
“Other sectors recording strong growth in the kingdom and, therefore, generating jobs are construction, digital and IT, health care, alternative energy, mining and minerals. These sectors are offering a bit of a premium to attract good candidates with niche skills. Retail, hospitality and banking are also doing well,” Mr Singh adds.
In the engineering and construction sector, there is demand for technicians, engineers and senior consultants, while in aviation, professionals in ground services, maintenance, repair and overhaul are sought-after. People with skills in customer service, marketing and branding are in demand across sectors, he says.
Will companies pay bonuses in 2025?
Bonuses are typically paid at the end of March. Candidates are expecting bonus payouts, considering the strength of the economy, according to Mr Falzarano.
In the private sector, the bonus can be anywhere from one to three months of salary. They can be a bit more within the sector of financial services and investments, where the bonus can be between three to four months’ salary, and potentially up to six- or seven-months’ salary based on performance, he says.
“Companies are looking at how to better retain their talent pool, by considering incentives that are not purely financial. They are looking at improving company culture, both from a social and education perspective, helping candidates with their training, development and upskilling,” he adds.
Generous perks no more?
The big expatriate packages including allowances for housing, car and education, do not exist any more, Mr Falzarano says.
Candidates are getting an all-in salary instead. That is still broken down into basic salary, housing and transportation, but they are given that as a lump sum. Very few companies will offer full education allowance to candidates, they may offer an allocation towards it, he says.
Mr Singh says generous perks are still offered to senior employees, like in any other country. But the majority of employees are eligible for annual leave, sick leave, end-of-service gratuity and medical insurance for families as stipulated by the labour law, and family levy and schooling and relocation allowance in some cases.
Challenges
Anastasiia Stoiatska, founder of corporate training company Cross Cultural Connection, says that despite the growth of female participation in the kingdom’s workforce, they do not fully leverage government initiatives to become entrepreneurs or create passive income streams.
regional director, Michael Page Saudi Arabia
“There aren't enough training facilities in the kingdom yet to educate Saudi citizens, who will make up more of the workforce due to localisation policies, especially in customer service roles such as hotel management, tour guides, concierge services, etc,” Ms Stoiatska says.
“A few government-subsidised training programmes that offer international standard training accept a limited number of participants annually. Furthermore, English remains an obstacle for some to join the programme.”
Saudi Arabia is facing a talent shortage and skills gap. Highly qualified Saudi talent is scarce in the job market. Therefore, organisations, particularly in the public sector, are experiencing severe retention issues. Most Saudi employers are unable to retain their employees for longer than two years, she says.
Lack of mentoring and leadership training or career guidance is the leading cause of that, Ms Stoiatska adds.
Saudi Arabia Salary Guide 2025
Check out our salary guide below for a snapshot of how much you can expect to be paid monthly in your sector in 2025, based on Michael Page data.
Energy
In-demand skills: Proficiency in renewable energy systems, grid integration, and hydrogen technologies, experience in managing large-scale energy projects, knowledge of carbon management, emissions reduction strategies and environmental impact assessments, familiarity with Internet of Things, predictive analytics, and AI applications in energy efficiency and operational optimisation.
Positions in demand: Solar PV engineers, wind energy specialists, carbon capture specialists, drilling engineers, process engineers.
Engineering and manufacturing
In-demand skills: Quality and process optimisation, project management, sustainability and green manufacturing, health, safety and environment, and digital transformation.
Positions in demand: Business excellence manager/director, project manager, sustainability manager/director, healthy, safety and environment manager/director, operations manager/director.
Finance and accounting
In-demand skills: Strategic finance business partnering, data-driven financial planning/budgeting, project financing, financial modelling/scenario planning.
Positions in demand: Chief financial officer, FP&A (financial planning and analysis) leadership, treasury leadership, financial controller, accountant.
Banking and financial services
In-demand skills: Investment deal execution, compliance, corporate governance and risk, relationship management, financial modelling, financial reporting, financial regulatory and budgeting.
Positions in demand: Alternative investments (senior associate/vice president), chief compliance officer, corporate banking (senior relationship manager/executive vice president), real estate investments (associate/VP), chief financial officer.
Health and life sciences
In-demand skills: Strategic sales, health economics, tender management, scientific and product knowledge, medical billing, coding proficiency, transformation management, change management.
Positions in demand: Sales/business development, market access, medical sciences liaison, revenue cycle management, operation management.
Human resources
In-demand skills: HR data analytics, rewards strategy, employee value proposition, workforce planning, talent strategy.
Positions in demand: Employee experience and engagement, organisational development director, performance and rewards management, recruitment (manager/senior manager), HR director.
Legal
In-demand skills: Projects and construction, real estate, oil and energy, mergers and acquisitions, private equity.
Positions in demand: Head of legal, head of governance, risk and compliance, compliance director, board secretary, legal manager.
Procurement and supply chain
In-demand skills: Supply chain optimisation and transformation, strategic sourcing and vendor management, contract management, supplier negotiation and management, software implementation.
Positions in demand: Procurement director, logistics director, head of supply chain, supply chain manager, warehouse manager.
Project management and strategy
In-demand skills: Enterprise project management (EPMO) office set-up, strategic planning, project delivery, strategy execution, project management office (PMO) maturity assessment.
Positions in demand: Head of EPMO, senior project manager, corporate strategy director, strategic partnerships, EPMO/PMO lead.
Property and construction
In-demand skills: Financial analysis, feasibility studies, due diligence, urban planning, regional masterplans, urban design, concept design, architecture, interior design, design management, site management, full life cycle project management, facilities management, property management, leasing.
Positions in demand: Development, masterplanning, design, project delivery, asset management.
Sales and marketing
In-demand skills: Market and industry knowledge, adaptability, relationship management, commercial acumen, negotiation skills, sector/product experience, digital marketing.
Positions in demand: General manager/country manager, chief commercial officer, business development director/manager, regional sales manager, key account manager, marketing manager.
Technology
In-demand skills: AI, cloud, data and analytics, cyber security, product management.
Positions in demand: Digital transformation manager, head of data and analytics, AI lead, product manager, head of information security.
