Saudi Arabia tech hiring shifts into execution mode

Saudi Arabia’s AI and technology companies are still adding headcount, but the hiring rush is over, according to EnterpriseAM. The market has moved into execution mode, meaning hiring managers now have to explain why a role exists, what it will deliver in its first year, and whether someone already in the team could step into it, said Unicorn Talent CEO Zeina Karrit.

Packages are being negotiated much more carefully. Karrit called the shift healthy, saying rushed hiring breeds mistakes on both sides, and firms that hire more deliberately usually know what they need. “Saudi firms are growing their teams, so most hiring plans are still there. What’s changed is which roles make it to the budget approval,” she said.

Where the slowdown is clearest

The slowdown is most visible in construction, infrastructure, and engineering-led projects, and in demand for consultants. These sectors had been hiring at pace during the earlier phase of giga-project announcements and master planning. Now that many projects have moved from design into delivery, the workforce profile has shifted. Employers are less willing to pay for advisory roles and more focused on people who can operate systems, manage vendors, and keep projects moving.

For HR teams in Saudi Arabia, this means requisition approvals are taking longer and require more evidence. A role that would have been approved quickly twelve months ago now needs a business case tied to a specific deliverable. Hiring managers should expect to answer questions about internal mobility before a vacancy is advertised externally.

The premium on AI and infrastructure skills

The most sought-after people are those who make AI work: data engineers, cloud architects, and cybersecurity specialists. Data centres going up across the Kingdom are lifting the value of anyone who can design and run that infrastructure. This is not a general technology premium; it is concentrated in roles that directly support AI deployment and the physical and digital infrastructure beneath it.

Karrit noted that as tools take over more repetitive work, companies need fewer people doing tasks and more people who can make decisions and own the outcome. She added that AI capability is no longer just a tech skill, because people in HR, finance, sales, and operations are now expected to actually use these tools in their daily work.

For payroll and HR operations teams, this has a practical consequence. Job descriptions written before the current wave of AI adoption may no longer match what the business needs. HR leaders should review role profiles for administrative and transactional positions and consider whether the expected output has changed. A payroll specialist who can use automation tools to handle exceptions may now be more valuable than one who processes routine transactions manually.

Saudization and the cost of scarce local talent

Saudization sits at the core of hiring in Saudi Arabia and is expensive. The talent pool is small, so companies compete for the same people and pay a premium. The talent gap widens where a role needs a Saudi national or an Arabic speaker, since the pool of experienced professionals there is still small. Employers also want proof that candidates have done similar work before, ideally in Saudi Arabia.

Private-sector employment rose 7% year-over-year to 13.6 million at the end of the second quarter, with Saudi nationals up 8.2% to 2.689 million, or 19.8% of the total. The Kingdom has been steadily encouraging Saudization over the past couple of years, raising the minimum salaries for Saudi workers and expanding their quotas.

Karrit said pay gets people through the door, but a clear next step, real responsibility, and a feeling of being invested are what keep them. Companies that do well will treat Saudization as part of their talent plan rather than a box to tick. That means graduate programmes, knowledge transfer from expat specialists, and planning a few years ahead.

Foreign talent premiums have been narrowing, and GCC employers pivoted toward more local hiring amid regional uncertainty. For HR and payroll leaders, this changes the composition of the workforce and the shape of the payroll itself. A higher proportion of Saudi nationals means different social insurance contributions, different end-of-service arrangements, and different expectations around career progression. Payroll teams should work with HR to model the cost of a more localised workforce over a three-year horizon rather than reacting to each hire.

The upskilling route

There are not enough experienced AI specialists for every company to hire its way out of the gap, so Karrit favours upskilling people who already know the business and bringing in a few senior specialists to lead. This is a meaningful shift from the earlier phase of the market, when employers often tried to buy talent at any price.

For HR teams, this means building structured learning pathways for existing employees in data, cloud, and AI operations roles. It also means identifying which senior specialists are genuinely needed and which gaps can be closed through training. The firms best placed for 2027 have a clear long-term direction and a solid commercial business behind them, Karrit said: AI and data infrastructure companies, telecom operators, fintechs, and manufacturers investing in digital operations.

Sources: enterpriseam

Photo: Saudi Tiger by Tech. Sgt. Rose S. Reynolds, Public domain