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Private Sector Employees Highest Paid in Saudi Arabia

The Saudi private sector records a high performance in employment (Asharq Al-Awsat)
The Saudi private sector records a high performance in employment (Asharq Al-Awsat)
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Private Sector Employees Highest Paid in Saudi Arabia

The Saudi private sector records a high performance in employment (Asharq Al-Awsat)
The Saudi private sector records a high performance in employment (Asharq Al-Awsat)

A total of 965,000 employees earn an average salary of $2,600 or more in Saudi Arabia, according to the latest official Saudi data.

The Saudi private sector continues its high performance in hiring high-wage workers, with about 708,000 employees working in companies and institutions, an equivalent of 73.3 percent.

The Saudi government is developing programs and initiatives to encourage private sector enterprises to generate jobs, most notably employment support from the Human Resource Development Fund (Hadaf).

Hadaf contributes to providing training and employment support programs, bearing a percentage of the wages for employment, training, and qualification for jobs.

The latest data issued by the General Organization for Social Insurance (GOSI) indicated that the number of employees who earn a salary higher than $2,600 in the private sector had reached approximately 708,000, compared to 256,000 employees from government agencies.

The data showed that those earning between $1,300 and 2,600 reached more than one million employees during the second half of this year.

Compared to the same quarter five years ago (2018), official reports show that the total number of those earning $2,600 or more in the private sector reached about 473,000, an increase of 66.8 percent during Q2 of 2023.

According to the data, Riyadh alone contains nearly half of the workers whose wages exceed $2,600 in the public and private sectors in the Q2 of 2023.

- Occupational injuries

The General Organization for Social Insurance indicated that occupational injuries dropped six percent during the second quarter of this year compared to the same period in 2022.

GOSI explained that preventive and educational field efforts and the establishment's commitment to applying occupational health and safety standards for workers have contributed to reducing work injuries.

The past three months have witnessed the registry of 5,845 new work injuries, compared to the same period in 2022, where it recorded 6,198 injuries.

According to the GOSI, the decrease in injuries came despite the increase in the percentage of subscribers by 10.9 percent compared to 9.35 million.

The number of establishments increased by 28 percent, reaching 1,200,000, compared to 890,200 during the same period.

- Partner Program

In March 2021, the Crown Prince, Mohammad bin Salman, Prime Minister and Chairman of the Council for Economic and Development Affairs, launched a program to promote the partnership between the private and public sectors.

The program aims to develop partnerships between the government and private sectors and achieve strategic goals, notably increasing the economy's resilience and supporting prosperity and sustainable growth.

It seeks to activate the role of the private sector and enable it to reach a volume of local investments of up to $1.3 trillion in 2030, which would provide hundreds of thousands of job opportunities.

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Saudi Arabia: Rising Demand for Housing Units Drives Property Prices Higher

Residential and commercial real estate in the Saudi capital, Riyadh (Asharq Al-Awsat)
Residential and commercial real estate in the Saudi capital, Riyadh (Asharq Al-Awsat)
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Saudi Arabia: Rising Demand for Housing Units Drives Property Prices Higher

Residential and commercial real estate in the Saudi capital, Riyadh (Asharq Al-Awsat)
Residential and commercial real estate in the Saudi capital, Riyadh (Asharq Al-Awsat)

Real estate experts have attributed the ongoing rise in Saudi Arabia’s property price index, over 16 consecutive quarters, to significant and growing demand for housing units.

This trend is supported by the success of government-backed housing projects in attracting consumer interest, the evolution of financing mechanisms, and flexible credit facilities and subsidized financing programs offered by banks.

Experts predict that property price increases, particularly in major cities, will persist through the upcoming quarters of 2025 if the launch of new housing projects continues. The real estate price index saw a 3.6% year-on-year increase in the fourth quarter of 2024, marking the fastest growth since the first quarter of 2021.

According to the General Authority for Statistics’ quarterly report on property prices for the fourth quarter of 2024, the index was primarily driven by a 3.1% rise in residential property prices, a 5.0% increase in commercial property prices, and a 2.8% rise in agricultural property prices. On a quarterly basis, the property price index rose by 1.6% in the fourth quarter compared to the third quarter, with residential property prices increasing by 1.0%, commercial prices by 2.7%, and agricultural property prices by a significant 9.8%.

In remarks to Asharq Al-Awsat, Khaled Al-Mobid, CEO of Menassat Realty Co., attributed the price surge to heightened demand for housing units and the success of government-subsidized housing projects, which have attracted significant consumer interest. He noted that these factors have boosted property prices, especially in neighborhoods hosting large housing projects such as those in eastern and western Riyadh.

Previously low-priced properties in these suburban areas have experienced sharp price hikes due to increased demand. Al-Mubid believes that if the momentum of housing projects continues in major cities, coupled with strong consumer purchasing power and ongoing growth in the real estate sector, property prices will likely continue to rise through mid-2025, or at the very least, stabilize without declining.

Abdullah Al-Mousa, a real estate expert and marketer, told Asharq Al-Awsat that the sustained rise in property prices is linked to economic and investment growth driven by Saudi Arabia’s Vision 2030 initiatives.

He pointed out that large-scale investments in infrastructure and city development, particularly in major cities like Riyadh and Jeddah, have boosted demand for real estate.

Mega projects such as Qiddiya and developments in entertainment and hospitality have also increased the value of surrounding areas and attracted interest from buyers and investors.

Al-Mousa highlighted that population growth, combined with government initiatives like the “Sakani” program, rising income levels, and stronger purchasing power, have intensified demand for residential properties. Families are increasingly seeking larger spaces and greater privacy, leading to a shift in demand toward villas and spacious apartments.

The evolution of financing mechanisms, including flexible credit facilities and subsidized loan programs, has improved homeownership accessibility. Al-Mousa noted that lower global interest rates have made borrowing more attractive, accelerating purchasing decisions and increasing activity in the real estate market. The expansion of luxury housing projects and developments targeting middle- and high-income families has further driven competitiveness and property price growth.

Real estate marketer Saqr Al-Zahrani noted that Saudi property prices have shown a marked acceleration in the fourth quarter of 2024. He attributed the rise in the general index to the complex interplay of supply and demand dynamics in the market, supported by Saudi Arabia’s recent economic and structural transformations and the influence of foreign investments.