Hiring expansion and expectation gaps to define the 2026 Saudi job market

Saudi Arabia’s job market is navigating a widening expectation gap in 2026. While firms are eager to expand their headcount, a mismatch between available skills and rising pay and progression demands is creating a friction-heavy environment for recruitment and retention.

The hiring heatmap

Across the board, 74% of firms plan to grow their teams this year, mostly in tech, construction, property, finance, and banking, building on an expansionary 2025 that saw 62% of Saudi firms boosting their headcount, Hays General Manager Ryan Tagg said.

Riyadh is the place to be: If you’re looking for work in Saudi Arabia, pack your bags for the capital. Some 69% of recruitment activity is centered in Riyadh, followed by Jeddah (43%) and the Eastern Province (37%), according to the Hays Salary Guide 2026.

A talent tug-of-war

Finding “the one” is getting harder: A massive 93% of employers admit they have a skills gap. Why? A mix of insufficient industry-relevant education (35%), uncompetitive salaries or benefits (35%), and strong competition for talent (33%). To fix it, 41% are looking for fresh talent, while 36% are prioritizing upskilling their existing workforce.

What companies are looking for: The most in-demand capabilities for 2026 are technical and digital skills (49%), followed by business and analytical expertise (46%) and industry-specific or trade-focused skills (44%). If you’ve got a specialist digital niche, you’re in high demand — 48% of new roles are targeting these specific technical capabilities, ahead of leadership or management (39%) and operational or support functions (35%).

Finding talent is one thing, but keeping it is a different game: More than half (52%) of employers say they can’t keep up with market salary expectations and 46% admit they don’t offer enough career progression windows to keep employees onboard. Most employees (55%) cited unmet benefits expectations as a key reason for changing jobs, followed by a lack of career progression (37%) and limited development windows (34%).

Show me the money (and the dental plan): In 2025, 69% of professionals saw a pay raise — a jump from 51% the year before. While some got a modest 2.5-5% bump, an equal number (14%) saw a more sizable 20%+ increase. Even so, 56% of workers feel their paycheck still doesn’t match the weight of their responsibilities. If the salary doesn’t talk, benefits must; 71% of candidates rank benefits as their top priority after base pay.

Learning on the boss’s dime: To keep people from leaving, upskilling is becoming a primary peace offering. Employees are asking for external education funding (64%) and access to online

learning platforms (39%), and employers are listening — 66% are now offering internal training and 52% provide access to online learning platforms to bridge the gap.

There is a bit of a “lost in translation” moment with AI. While 58% of professionals use AI regularly and 86% are eager to learn more, only 19% of employers are actually providing full training. Most companies (43%) say they want to help, but they’re struggling to keep up with how fast the tech is evolving.

Looking ahead

Big dreams, bigger headcounts: 28% of employers expect to grow their staff by more than 10% this year, and 24% forecast increases between 5-10%. However, the mobility of the workforce remains high, with about a third of employees ready to jump ship for a better offer, 19% seeking internal promotions, while only 2% are not considering any change.

We’re heading toward a salary standoff. While 69% of employers plan to give raises, most (31%) are thinking in the 2.5–5% range, and 28% predict no change. Meanwhile, the workforce is much more bullish. 80% expect a raise, and nearly 30% are holding out for a bump of 20% or more.