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 constructi
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