Saudi Arabia is planning to increase wages of mid-level to senior jobs this year on an average of 5-6% in line with current economic conditions, according to a salary guide by GCC-based recruitment consultancy Cooper Fitch.
The guide also expects a 15% rise in women in the workforce over the next 12 months.
The kingdom’s biggest driver in the coming year, however, is to balance the employment level for nationals and expats, the guide said.
Moreover, Cooper Fitch estimates 4-5% GDP growth in Saudi based on the average price of oil at $71 in 2018, as well as various factors contributing to the diversification of the kingdom’s economy.
While the International Monetary Fund (IMF) predicts a lower GDP growth of circa 3%, based on a projected increase in crude oil production, Cooper Fitch expects growth will be higher due to a rise in non-oil activities.
The non-oil growth will be in line with Vision 2030, and will see the continued boost of projects such as Red sea, Neom, Riyadh Gate and others, with Saudi being among the most promising economic markets globally.
Another driver for growth will rest within privatisation and public-private partnerships, while the implementation of VAT has helped stabilise Saudi’s non-oil-based revenue. It has also created new employment opportunities in the tax advisory and tax consulting space.
Source Credit: Arabian Business