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The next 12 months will be a “record-breaking” period for the Saudi Arabian recruitment market, as most companies in the kingdom plan to hire new employees in 2023 to support business growth, according to Dubai-based recruitment specialist Cooper Fitch.
Around 57% of Saudi Arabia-based businesses surveyed said they are planning to expand their headcount next year. More than a third of the companies (33%) intend to increase their payroll by up to 9%, while nearly a quarter (24%) said they are looking at raising their staff size by more than 10% next year.
“This is why we expect the next 12 months to be a record-breaking period for KSA’s recruitment market,” said Trefor Murphy, founder and CEO of Cooper Fitch.
The Saudi economy has been experiencing rapid growth as the government rolls out a number of mega and giga-projects to support its development and diversification strategy.
By next year, the country’s Public Investment Fund (PIF) is expected to speed up its diversification-related investments next year, with the kingdom witnessing a record budget surplus of $39.9 billion in the first nine months of 2022.
“With the coffers full, Saudi leaders will have a greater capacity to attract the talent required to realise their vision,” Murphy said.
The Saudi gross domestic product (GDP) grew by 8.6% year-on-year as of the end of September 2022 on the back of higher oil prices. Investments also continued to flow into the kingdom over the past year amid private equity, venture capital, and merger and acquisition activities in growth sectors.
“Saudi Arabia’s economy is expanding rapidly, and [we expect] development and diversification to continue swiftly in 2023,” Murphy said.
Outlook on salaries
However, when it comes to salaries, businesses are likely to hold back on delivering huge pay hikes for their staff, but a significant number (43%) will still be making wage adjustments.
Overall, Cooper Fitch estimated that salaries in the kingdom will grow by just over 3% next year. More than a fifth of businesses surveyed (22%) have plans to reduce salaries in the coming 12 months.
“This figure is based not only on the data we have gathered through our survey but also on broader recruitment trends witnessed in the market during the past year,” said Murphy.
In 2022, most businesses (77%) either increased or made no changes to salaries, with around 8% granting pay adjustments in excess of 10% to Saudi Arabia-based workers, particularly those in the automotive, construction, consulting, financial services, investment management and logistics firms.
(Reporting by Cleofe Maceda; editing by Mily Chakrabarty)
