Jakarta, hitclubapk3 Indonesia
—
Companies
Saudi Arabia
started cutting gifts
salary
high, which has often been an attraction
foreign workers
best in the construction and manufacturing sector to work there.
With this salary cut, prospective foreign workers cannot hope to make it
negotiable
salaries 40 percent, moreover 100 percent higher than their earnings in their previous places to Saudi companies, as was previously common.
This salary reduction was carried out in line with the Kingdom of Saudi Arabia’s steps to restrain spending and rearrange its development priorities.The kingdom is now shifting its focus to the artificial intelligence (AI), logistics and mining sectors, which are considered more profitable.
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In fact, the kingdom is halfway to realizing its economic transformation blueprint, known as Vision 2030.
This roadmap is a transformation of the Saudi economy to reduce dependence on oil revenues, create jobs, and expand industries such as tourism, real estate, mining and financial services.
For Vision 2030, Saudi Arabia has poured huge funds into various megaprojects worth billions of US dollars, which has sparked a surge in demand for high-quality foreign workers.
One example of a large project under review is NEOM, a planned US$500 billion futuristic city in the desert.NEOM will be the tourist center for the Trojena mountains, as well as hosting the 2029 Asian Winter Games.
CEO of Tuscan Middle East based in the United Arab Emirates (UAE), Hasan Babat, said that for the NEOM megaproject, Saudi recruited many foreign workers with skills that were rare in the local workforce.To attract the best foreign talent, Saudi offers a salary of US$100 thousand, whereas in the UAE the same position only pays US$60 thousand.
Now a number of megaprojects, including NEOM, have been postponed amid Saudi efforts to rationalize its economic program.
“The pace of development is slowing, as is recruitment of workers. Companies are now more aggressive in negotiating salaries, while efficiency measures are being implemented in many sectors,” Babat was quoted as saying
Reuters
, Sunday (16/11).
In the October salary report released by Tuscan, Saudi companies may allocate budgets to ‘rising’ jobs such as the AI and digital sectors.
The Saudi government has also accelerated labor market reforms, including initiatives to increase the proportion of local residents.
The Saudi unemployment rate is at its lowest point in history, and the number of citizens working in the private sector has grown 31 percent since 2016.
“Pay packages are now much more measurable, based on data, performance and real market benchmarks. To some, it feels like contraction. To me, it signals maturity,” said Matches Talent CEO Louise Knutsson in Dubai.
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(pta/sfr)
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