Saudi Arabians can expect to see on average a 3 percent rise in their salaries in 2020, according to the 2020 KSA Salary Guide by recruitment consultancy Cooper Fitch.
The consultancy noted that while all industries and sectors are growing and expanding, the strategy sector will see the highest salary increase for 2020 at 6 percent. Investment management, sales, and marketing are set to follow at a 5 percent increase, trailed by accounting and finance at 4 percent.
Advisory, banking and financial services, legal and investment management, and public sector jobs are all expected to increase salaries by 3 percent.
“Saudi Arabia is slowly emerging as the go-to market for employment due to its steadily increasing salaries being experienced across key sectors,” said Trefor Murphy, CEO of Cooper Fitch.
“Driven largely by the country’s efforts to rejuvenate commerce and culture, KSA’s state entities’ privatization exercise and reforms have made it easier to set up new businesses and attract foreign capital, which has in turn significantly improved the job market,” he added.
The report pointed to a number of reforms as the driving factor behind the positive salary outlook, such as the introduction of the Saudi tourist visa, state company privatization, technology implementation, and female empowerment.
Foreign direct investment inflows also increased in 2019, while the Kingdom also relaxed limits on foreign strategic investors in shares of listed companies and streamlined the process for entrepreneurs and venture capitalists to set up businesses and invest.
Since Saudi Arabia’s Crown Prince Mohammed bin Salman introduced the ambitious reform plan known as Vision 2030 in 2016, the Kingdom has made strides towards diversifying its economy and reducing its dependence on oil revenues.
Saudi Arabia jumped 30 spots in the World Bank’s Ease of Doing Business 2020 index in October – the biggest improvement and highest jump worldwide. Reforms under Vision 2030 have led to improved access to credit, strengthened minority investor protections, and facilitated the resolution of insolvency in the Kingdom, according to the World Bank.