Saudi Arabia is recalibrating its approach to attracting foreign talent, reducing the once-generous salary premiums that lured skilled professionals to sectors like construction and manufacturing. This shift aligns with the kingdom’s broader economic transformation under Vision 2030, which aims to diversify its economy away from oil dependence and foster growth in industries such as tourism, real estate, mining, and financial services. Recruiters report that foreign workers can no longer expect the 40% to 100% salary premiums that were common earlier this decade, as companies now adopt more restrained compensation packages. This change reflects a strategic pivot towards sectors like artificial intelligence (AI), logistics, and mining, which are seen as offering better returns compared to infrastructure-heavy megaprojects like NEOM and Trojena. These ambitious projects, while central to Saudi Arabia’s long-term vision, have faced delays and execution challenges, further prompting a rationalization of spending. Lower oil prices and a widening fiscal deficit have also pressured public finances, leading to a slowdown in recruitment and more cost-conscious hiring practices. Despite these adjustments, Saudi Arabia remains an attractive destination for professionals outside the Gulf region, where job markets are tighter and growth is slower. The kingdom has also accelerated labor market reforms, boosting the proportion of Saudi citizens in the private sector and increasing competition for jobs. Unemployment among Saudis is at a historic low, and the number of citizens in private-sector roles has grown by 31% since 2016. To remain competitive, companies must now offer predictable compensation packages that reflect living costs, family-friendly lifestyles, and alignment with the kingdom’s transformative goals.