Saudi Arabia is entering a new phase of workforce evolution – one where compensation structures are being recalibrated to support long-term sustainability, national development and a competitive labour market. Expatriate compensation is not diminishing, it is being reshaped to align with the kingdom’s economic vision and a maturing talent ecosystem.
For decades, the kingdom attracted global expertise through attractive compensation. Today, as part of Vision 2030, Saudi Arabia is strengthening domestic capability while continuing to welcome global talent that fuels sectoral growth. This shift reflects strategic planning, not short-term cost optimisation.
Why the premium model is evolving
Over the past 18 months, compensation differences between foreign residents and local talent have narrowed in some sectors. This change is driven by policy modernisation, local talent empowerment initiatives and an increasing focus form employers on sustainable workforce structures.
Industries such as construction, engineering, logistics and manufacturing – historically reliant on international expertise – are transitioning into more skills-based, performance-driven compensation models. Leadership roles, specialised capabilities and high-impact expertise continue to command strong premiums.
Regional alignment in progress
Saudi Arabia’s evolution is influencing wider workforce strategies across the Gulf. Countries including the UAE, Bahrain and Oman are adopting more structured, future-focused compensation frameworks, particularly in high-priority sectors such as artificial intelligence, advanced manufacturing, logistics, tourism, mining, health care and financial services.
This signals a shift in how foreign residents are viewed – not as short-term specialists, but as long-term contributors to transformation. Both employers and professionals are responding with a more strategic mindset.
Beyond salary: The new value proposition
Salary alone is no longer the defining magnet for foreign talent. Four non-monetary value propositions are becoming equally, if not more, influential:
Meaningful roles: Professionals seek positions where they can see real impact and have space to contribute to decisions.
Leadership pathways: Clear progression and visibility on future opportunities carry weight similar to compensation.
Stability and residency clarity: The ability to plan long term influences the decisions of employees more than yearly pay adjustments.
Vision 2030 alignment: Being part of national transformation initiatives is viewed as a strong career advantage.
Organisations that can clearly communicate these levers, alongside fair compensation, will retain their competitive edge. Employers who rely solely on salary-based recruitment may risk becoming irrelevant in a rapidly maturing labour market.
Opportunity is real, but different
Saudi Arabia continues to create opportunities for global professionals. The expectation is evolving, not retreating. Three strategies stand out for foreign residents aiming to thrive:
- Reframe negotiations: Expect packages that are structured differently, where benefits, performance bonuses, residency incentives and education allowances may carry more weight than base salaries.
- Explore growth sectors: While traditional industries are normalising salaries, emerging sectors such as AI, sustainability, logistics, tourism and financial technology are still attracting premium pay for specialised skills.
- Understand local hiring dynamics: Companies increasingly seek foreign talent who can lead localisation efforts, transfer know-how and help build teams, which requires presence, mentorship and commitment.
This shift rewards those who contribute to the kingdom’s long-term, capability-building efforts.
What employers must do now
Companies entering or expanding in Saudi Arabia cannot rely on outdated talent strategies. Those succeeding today share a common approach – they are designing workforce strategies built on sustainability rather than short-term compensation spikes. Four strategic shifts stand out:
- Structured career pathways instead of salary escalation
- Stronger integration of domestic talent
- Roles designed for measurable impact and capability growth
- Positioning expatriates as long-term contributors and mentors
Government initiatives, from localisation programmes to sector-based talent incentives, reinforce a holistic approach to workforce development. Companies that adapt early will remain competitive.
New balance
Saudi Arabia’s workforce transformation is not about reducing expatriate competitiveness. It is about aligning compensation with skills, impact and future needs. This is a structured rebalancing aligned with long-term national goals. These changes intersect economic reform, productivity, talent mobility and sectoral growth.
Expatriate compensation is not fading, it is being reshaped to support a more resilient, capable and future-ready labour market – one where opportunity continues to grow for those aligned with the kingdom’s direction.
Mahesh Shahdadpuri is founder and chief executive of TASC Outsourcing
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Company name: SimpliFi
Started: August 2021
Founder: Ali Sattar
Based: UAE
Industry: Finance, technology
Investors: 4DX, Rally Cap, Raed, Global Founders, Sukna and individuals
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Venue Insportz, Dubai, September 16-23
UAE squad Saqib Nazir (captain), Aaqib Malik, Fahad Al Hashmi, Isuru Umesh, Nadir Hussain, Sachin Talwar, Nashwan Nasir, Prashath Kumara, Ramveer Rai, Sameer Nayyak, Umar Shah, Vikrant Shetty
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Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
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Anita Williams
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- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
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- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
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Name: Mamo
Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua
Based: Dubai, UAE
Number of employees: 28
Sector: Financial services
Investment: $9.5m
Funding stage: Pre-Series A Investors: Global Ventures, GFC, 4DX Ventures, AlRajhi Partners, Olive Tree Capital, and prominent Silicon Valley investors.
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Power: 165hp
Torque: 240Nm
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Publisher: EA Sports
Consoles: Nintendo Switch, PlayStation 4&5, Xbox One and Xbox Series X/S
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Power: 400hp
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Nationality: Irish
Family: Wife, Pom; and daughters Kate, 18, and Ciara, 13, who attend Jumeirah English Speaking School (JESS)
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Started: November 2017
Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga
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Sector: transport and logistics
Size: 150 employees
Investment: approximately $8 million
Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar
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