Saudi’s expat workforce shrinks for the first time in more than two years
Foreigners employed in the country, excluding domestic workers, fell by 16,000 in the three months to June, driven by a drop in construction jobs.
Saudi Arabia's expat workforce contracted for the first time in over two years, according to the government's latest quarterly report. The decline was driven by widespread layoffs, geopolitical tensions, and a shift in hiring practices by state-controlled companies. Foreign workers, excluding domestic staff, experienced a drop of 16,000 jobs between March and June 2026, largely due to a reduction in construction positions.
Medical insurance coverage for expatriates remained stagnant during the same period, suggesting a continued decline in expatriate numbers. State-owned firms have been reducing their workforces or avoiding contract renewals due to budget cuts and project cancellations, notably in ambitious initiatives like NEOM. The Iran war has also raised concerns regarding the region's safety.
Meanwhile, the unemployment rate among Saudi citizens has remained unchanged, and the economy continues to generate new jobs, albeit at a slower rate. Despite these challenges, forward-looking data from the Purchasing Managers' Index indicates a potential rebound in hiring activities.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
