UAE businesses expanding into Saudi Arabia face different pay markets and package norms. How to set salaries and keep pay consistent across both.
Many UAE businesses are opening operations in Saudi Arabia, attracted by the scale of the market and the pace of investment there. The commercial case is usually well developed. The people side, and particularly pay, often gets less attention until the first offers need to be made.
It is tempting to apply the UAE salary structure directly. That rarely works. The two markets differ in ways that affect both the level and the shape of pay.
| Area | What to consider |
|---|---|
| Market rates | Pay levels for the same role can differ between the two countries, and the gap varies by job family and seniority |
| Package structure | Allowances, particularly housing and transport, are often structured differently |
| Social insurance | Saudi Arabia has social insurance contributions that apply differently to Saudi and non-Saudi employees |
| End-of-service | Both countries provide end-of-service benefits, but the rules and calculations differ |
| Nationalisation | Saudisation requirements affect which roles can be filled by whom, and at what pay levels |
| Talent supply | Some skills are more available in one market than the other, which affects pay pressure |
Saudi roles should be benchmarked against the Saudi market, using comparators that reflect where you will actually compete for people, often Riyadh, Jeddah or the Eastern Province depending on the business. Using UAE data with an adjustment factor gives a rough guide at best, and can be misleading for specialist or senior roles.
Where you expect people to move between the two countries, benchmark both markets for the roles concerned so you can see the difference clearly.
Most businesses operating in both countries keep a single grading framework, so that a role at a given level means the same thing in each market, while maintaining separate pay ranges for each country. That approach keeps career paths and internal comparisons consistent without forcing one market's pay onto the other.
Sending an experienced UAE employee to set up the Saudi operation is common. Decide early whether the move is:
Each option has different implications for cost, visas, end-of-service entitlements and the employee's expectations. Agree the approach before conversations with individuals start.
Plan the Saudi workforce with nationalisation requirements built in, not added later. That means identifying which roles will be filled by Saudi nationals, setting competitive pay for those roles and planning development so that Saudi employees can progress into senior positions.
Humatix benchmarks pay in both the UAE and Saudi Arabia and helps organisations operating across the two markets build consistent grading, separate market-based pay ranges and clear terms for employees who move between them.
Note: legal or tax advice should be sought on the legal and tax matters referred to in this article, as requirements vary by jurisdiction and change over time.