Employers in Saudi Arabia must adapt as professionals want more than hefty pay packages

Saudi Arabia has become a magnet for companies seeking to expand their businesses into the Middle East, with sectors like technology, finance and tourism leading the way.

The kingdom has made significant strides in becoming a family-friendly destination. Investments in international schools, cultural hubs and modern infrastructure are now a critical part of its appeal, successfully drawing professionals who once commuted weekly from Dubai or Abu Dhabi.

I have observed first hand how a surge of international interest has transformed the employment market in Saudi Arabia, presenting new challenges and opportunities for both businesses and jobseekers.

Hiring on the rise

Saudi Arabia’s Vision 2030 economic diversification plan is reshaping hiring behaviours. Global companies, from private equity to law, are establishing new offices in Riyadh to access domestic opportunities. Numerous US-based law firms are taking advantage of the kingdom’s growing economic appeal.

We are continuing to see the construction sector booming. Saudi Arabia’s ambitious projects, underpinned by a real estate market valued at $1.1 trillion, are fuelling a huge demand for construction talent. Whether it’s engineers, project managers or specialised construction workers, professionals in these industries are highly sought-after.

Meanwhile, the technology sector is also on an upwards trajectory. The Saudi government’s substantial investments in the industry, including smart city initiatives like Neom, the roll-out of 5G networks and the development of cloud computing and data centres across the country, are driving demand for engineers, IT professionals and sustainability experts.

Changing priorities

Meanwhile, jobseeker priorities in the region have shifted significantly. If we rewind to 2019, inflated salaries were the main pull for professionals to move to Saudi Arabia. However, in today’s market, salary inflation is no longer the driving factor it once was.

Today, candidates prioritise career progression, family-friendly environments and work-life balance.

While Saudi Arabia’s job market is growing, competition with established hubs like Dubai and Abu Dhabi is fierce. Both cities offer strong lifestyle benefits and a wealth of global connectivity.

For the kingdom’s employers to compete, they must create value propositions that go beyond compensation. Offering tailored relocation packages that address specific family needs, transparent career progression pathways and flexible working arrangements can make Saudi employers stand out.

Moving to the kingdom can pose challenges and those who do not speak Arabic may face some language barriers in more remote areas. In addition, international workers relocating to the country may be asked to pay dependent fees: a monthly expense paid for each family member, adding substantial costs for those with families.

Employers can help ease this transition. For example, covering dependent fees or providing specialised relocation support for families can alleviate some challenges. Offering a competitive base salary package will always be vital, but providing additional benefits beyond the basic package, such as tuition fees for children, joining bonuses, annual travel tickets and employment retention bonuses will help businesses stand out to international jobseekers.

Companies in Saudi Arabia must also align their recruitment strategies with government policies, such as the Saudisation initiative, to integrate local talent while still offering appealing employment propositions to international workers for specialised roles.

Transparent communication of career trajectories, coupled with strong employer branding and supportive onboarding processes, can help to attract both local and international talent.

Looking ahead, Saudi Arabia’s job market will thrive. Being an emerging market, career growth opportunities are unparalleled. Professionals entering leadership roles in transformative projects like Neom and the Red Sea Development can pioneer industry standards and oversee groundbreaking initiatives.

Vision 2030 places a strategic focus on diversifying into non-oil sectors, opening up opportunities to build new, thriving industries. Professionals stepping into leadership positions in these sectors have the potential to shape industries from the ground up.

By addressing the needs of both local and international professionals, Saudi employers can secure their place as leaders in a rapidly evolving regional market.

While the current jobs market in the kingdom is flooded with business opportunities, jobseekers’ ever-evolving preferences, coupled with competition from the UAE, mean that companies must continuously innovate to stand out from the competition in the Middle East.

Zahra Clark is the head of the Middle East and North Africa region for Tiger Recruitment