Salary growth slows on abundant talent pool

Companies in Saudi Arabia will only increase salaries by the low single digits this year, as an influx of candidates from Europe and North America creates competition for jobs.

Sectors such as energy, real estate and construction, technology, hospitality and aviation are hiring as the kingdom proceeds with Vision 2030 programme to diversify its economy beyond oil.

Other sectors attracting jobseekers are consulting, engineering and manufacturing, and banking and finance, according to recruitment consultants. They are now inundated with candidates keen to move to the kingdom along with their families, a stark contrast to about seven or eight years ago when recruiters had to sell the advantages for professionals to relocate to Saudi Arabia.

Employers are also hiring Saudi citizens as there is a major push to get them into key positions within government and semi-government organisations.

Candidates are being offered all-in salaries as the large expatriate packages including allowances for housing, cars and education, do not exist any more in Saudi Arabia, recruiters say.

Starting salaries

Starting salaries range from 7,000 Saudi riyals ($1,866) to 140,000 riyals ($37,331) per month, averaging 32,000 riyals. The industry with the highest average starting salary is Property & Construction, while Procurement & Supply Chain has the lowest.