The Golden Era of the Middle East: Talking Money

Over the past decade, our team has developed a deep understanding of the Middle Eastern landscape. With extensive experience in recruitment across the region, we've observed firsthand how the industry has evolved. In this article, we share our insights into the changes and the future of the construction industry in the Middle East.

Please note that everything in this article reflects our company's opinion, and we fully acknowledge that others may agree or disagree with the statements made. These views are based on our experience and exposure as a headhunting firm.

Competitive Landscape

The UAE and Saudi Arabia have become magnets for skilled professionals from Europe and beyond, driven by the rapid growth of their economies. From Development Directors to Construction Managers, there’s an insatiable demand for professionals across all verticals. The region has become the global hub for construction, attracting talent and expertise from around the world.

The UAE, for instance, is aiming to attract even more expatriates, with a target population increase of 5.8 million by 2040. Saudi Arabia, not to be outdone, plans to increase its population to between 50 and 60 million by 2030. These ambitious goals are reflective of the region's broader strategy to become a central player on the global stage.

Let’s Talk About the UAE

A decade ago, professionals relocating to the UAE often enjoyed significant financial benefits. For example, it wasn’t uncommon to see a 50-100% increase in their UK salaries, thanks to tax advantages. Upon joining a reputable firm, they could expect comprehensive support—visa, medical expenses, a four-week hotel stay, and even baggage costs were covered. Perks like school fees and international pension schemes were typically reserved for senior members. Add in the lifestyle and favorable weather, and it’s no wonder the UAE became a dream destination for many expats.

However, as the market matured, many companies scaled back on these generous benefits. School fees, relocation packages, and similar perks became less common. Now, professionals are often expected to be in the country already or to cover their own flights to the UAE. Bonuses have become more discretionary, reflecting a broader trend in the region. There's also increased emphasis on flexibility, with employees often expected to travel within the region. While you'd expect professionals to flock to the UAE despite the above, many candidates are now thinking twice about relocating. 

In the past, relocating to the UAE was no small feat—it required attested degree certificates and rigorous professional background checks. But times have changed, and the "floodgates" have “seemingly” opened, allowing many individuals with limited educational backgrounds and minimal skills to enter the region. This shift has had both positive and negative implications.

On one hand, the caliber of professionals in some areas has declined. On the other hand, we’ve seen an influx of talented individuals with diplomas, apprenticeships, and strong "grass-roots" expertise (carpenters, bricklayers etc) —people who might have been overlooked in the past but bring invaluable skills, particularly in construction management and trades, where practical experience is key.

This evolution has significantly increased competition in the job market. With more people willing to accept lower salaries, companies are focusing on training "youthful" professionals. While this approach might boost margins—same service, lower costs—there’s a trade-off: the quality of projects and work might suffer. It’s now not uncommon to see a 30-year-old managing a project—a scenario that would have been unthinkable just a decade ago.

The Saudi Factor

If the UAE is the seasoned player, Saudi Arabia is the new powerhouse on the block. The Giga project era, which kicked off around 2017, saw an incredible push to get projects off the ground. The only way to attract top talent back then was to offer lucrative incentives.

By 2018, salaries in Saudi were uncapped, allowing professionals to make significant jumps—from AED 50,000 to AED 120,000, no questions asked. Bonuses were often six times the base salary. Some government companies offered AED 70,000 in cash as a relocation allowance and covered school fees for up to four children. Medical insurance was top-tier, with worldwide coverage—a fantastic perk. Gym allowances and other benefits made these packages highly attractive.

But over the past four years, the landscape has changed. Relocation allowances and salary increases are now often capped at 30% (or so), and some companies have started requesting salary certificates from previous employers.

Saudi Arabia's construction sector, especially with the ambitious Vision 2030 plan and mega-projects like NEOM and the Red Sea Project, requires a substantial workforce. Estimates suggest that Saudi Arabia will need 1-2 million workers in the coming years to sustain its construction needs. This massive demand underscores the importance of attracting skilled talent, both locally and internationally.

Saudi Arabia has been, and continues to be, a magnet for talent from the UAE and other GCC countries. However, the sheer scale of their construction ambitions means there isn’t enough skilled talent in the region to meet the demand. As a result, efforts have increasingly focused on attracting talent from Australia, New Zealand, Europe, the UK, the USA, and Canada.

Recruitment agencies worldwide are now involved in Saudi projects in some capacity, as the Kingdom seeks to anchor the expertise needed to fulfill its Vision 2030 goals and beyond. But the sheer drive to bring in talent at such a rapid pace raises questions about sustainability. Can this pace be maintained long-term? That’s debatable, but it certainly adds a unique dynamic to the construction industry.

Saudi Arabia’s aggressive talent acquisition is also intensifying regional competitiveness, which may have adverse effects. Many UAE firms are now turning to "affordable" talent from Europe and Asia. Some clients have even requested not to screen candidates currently working in Saudi due to their high salary expectations—unless they’re willing to lower those demands.

For professionals nearing retirement, Saudi presents a golden opportunity to maximize earnings. But for younger professionals, some employers view their skills as stagnant or overly abundant, given the nature of the work and projects. This, coupled with candidates' reluctance to reduce their current salaries, raises concerns about their future prospects if certain projects don't succeed.

Conclusion

The Middle East is in a transformative period, with both unprecedented opportunities and challenges ahead. The UAE has marketed itself as the go-to destination, leading to significant benefits for the region as a whole. People who once hesitated to work in Saudi Arabia are now open to opportunities there, attracting talent from around the world. This shift is a testament to the leadership and vision of individual countries in the region.

For professionals in construction, the Middle East—whether in the UAE or Saudi Arabia—is the place to be. It’s a dynamic environment where the stakes are high, the rewards are significant, and the future is anything but boring.

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