The average salaries of workers in Saudi Arabia’s private sector have surged by 45% over the last five years, driven by the economic growth and pro-business reforms that are part of the state’s transformative agenda under Vision 2030.
Average wages went up from SAR6,600 ($1,760) in 2018 to SAR9,600 ($2,560) in 2023, according to a report from the kingdom’s National Labour Observatory.
Saudi citizens' salaries have been growing partly because of the labour market’s competitiveness. The income growth has also been attributed to the support packages extended to the private sector during the COVID-19 pandemic, the report said.
There has also been a significant growth in the number of Saudi nationals taking home higher salaries.
Data showed that as of 2023, more than 44,000 Saudis are earning more than SAR40,000 a month, up by 172% from only 16,189 nationals with the same salary in 2018.
The growth has been due to a strong demand for Saudi workers with specialised skills, leadership skills and competencies required in major projects and companies.
The number of Saudi nationals receiving salaries of SAR20,000 has also gone up by 139% to 202,713 over the same period, thanks to high demand for specialised jobs, as well as improving skills of Saudi workers.
Saudi Arabia has rolled out several landmark projects as part of the kingdom’s transformative Vision 2030, which seeks to diversify the Gulf state’s economy and boost non-oil revenues.
(Writing by Cleofe Maceda; editing by Seban Scaria)