Salaries are likely to increase by 20 to 30 percent over the next five years in Saudi Arabia’s private sector due to heightened foreign investment in the country and the privatisation of parts of the public sector, economists have said.
Sectors such as retail, technology, and tourism will be the first to witness the surge in salaries thanks to the recent entries of leading companies to the fields, economist Abdullah Al-Maghlouth told Arab News.
Giant foreign companies are looking to hire more Saudis in line with the Kingdom’s mandatory hire of nationals in private companies. Their employment systems guarantee a minimum of 20 to 30 percent rise in annual salary over five years, explained professor Salem Ba’ajaja of Taif University.
Ba’ajaja said the increases in such companies will force small and medium-sized firms to follow through.
