For years, the agreement for expats moving to Saudi Arabia was simple: you get a life-changing, tax-free salary that was the envy of the professional world. That era is over.
The Kingdom is methodically taking apart the lavish benefit packages that once defined an overseas assignment. Those huge, double-digit pay bumps designed to attract top foreign talent are gone. In their place, we're seeing much more modest wage growth, projected to be just 2% to 5% in 2025. This is not a small tweak; it is a major strategic change driven by Vision 2030 and the rise of a skilled local workforce.
The ground has completely shifted for professionals who saw the Kingdom as a financial promised land. The dream hasn't disappeared, but the rules have changed for good.
What 'All-In' Salary Actually Means for Your Wallet
The biggest change is the shift to a consolidated "all-in salary." This is a huge adjustment from the old model, and it places significant new financial burdens directly on employees.
To see the difference, let's break it down:
- The Old Way: An executive's offer included a base salary plus separate, generous allowances. This typically meant the company paid for a villa, covered international school fees (which can top $30,000 per child), and provided a car allowance. These perks shielded expats from the high cost of living.
- The New Way: All those benefits are now rolled into a single monthly payment. While the total number might still look big, the responsibility for budgeting for housing, schooling, and transport now falls completely on you. It exposes you to market risks and demands a level of financial planning the old system never did.
Riyadh vs. Dubai: The New Choice for Expats
This new salary structure in Saudi Arabia inevitably puts it in direct competition with the UAE. Dubai, where expats make up around 80% of the population, has always been an expert at attracting global talent. Now, its appeal is likely to grow even more.
The salary premium for working in Saudi Arabia over the UAE, once massive, has shrunk to an average of just 5% to 8%. For many people, that thin margin is no longer enough to justify choosing Riyadh's more conservative environment over Dubai's cosmopolitan lifestyle, especially with the new financial risks.
A senior investment strategist at Gulf Global Assets, a firm tracking regional trends, sees a clear potential for a knock-on effect.
"The ripple effect on regional real estate, particularly in luxury segments of cities like Dubai, will be interesting," the strategist explains. "As the financial incentive in Riyadh shifts, we might see a reallocation of high-net-worth expat investment across the GCC."
A Strategic Shift in Focus
This change is directly tied to a strategic shift by Saudi Arabia's powerful Public Investment Fund (PIF). As some giga-projects like NEOM face adjusted timelines, investment is being redirected. The focus is now on future-focused sectors like:
- Artificial Intelligence
- Digital Technology
- Logistics
- Mining
- Advanced Manufacturing
The gold rush is over. The Kingdom is no longer just buying talent; it's investing in it strategically and expects a different kind of return. For anyone looking at a move, the message is direct: the financial playbook has been rewritten. Success now depends on how well you adapt.
