KSA This Week: Private sector hits 13.6m jobs, new shared-housing rule, factories up 19%
This week from the Kingdom: private-sector jobs reached 13.6 million, with Saudi nationals up 8.2%; a new Qiwa rule requires licensed shared housing for firms with 20+ workers in 527 professions; the Energy Minister set out plans for up to 10 million barrels a day of pipeline capacity; a Saudi-Chinese consortium won a $306 million Qiddiya stadium contract; the Cabinet merged its trade and export authorities; inflation held at 1.9%; Saudi startups raised about $1 billion in the third quarter; and official figures showed factory numbers up 19% and hotels up 32% in 2025. Here is what it means for employers and businesses in Saudi Arabia.
Jobs & Employment
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2.69m Saudis in private-sector jobs at end-Q2 2026, up 8.2% year on year |
Saudi Arabia's private sector employed 13.6 million people at the end of the second quarter, up 7% on a year earlier, according to the National Labour Observatory's latest quarterly report. Saudi nationals grew faster, up 8.2% to about 2.69 million, or 19.8% of the total. Some 563,000 Saudis joined the private sector in the quarter and 411,000 left, a net gain of about 152,000.
Most of the Saudisation gains are at the top of the skill ladder. Saudis now fill 51% of high-skill private-sector jobs, up from 47% in 2023, while the mid-skill share has held at 23%. The average Saudi private-sector wage rose 5.4% to SR9,500 a month. Saudi women in the sector grew 9.9% to 1.1 million and now make up 42% of the Saudi private-sector workforce.
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The TASC Take The race for Saudi talent is sharpest in skilled roles, and pay is rising to match. If your Nitaqat (Saudisation quota) position depends on mid-skill hires, plan early: that pool is not growing as fast. Budget for higher Saudi salaries, build training routes into mid-level jobs, and check your numbers on Qiwa every month, not just at audit time. |
Source: EnterpriseAM (National Labour Observatory data)
Labour & Compliance
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527 professions where firms with 20+ such workers must provide licensed shared housing |
The Qiwa platform has set out which workers fall under Saudi Arabia’s shared-housing requirement: 527 professions across four occupational categories — 53 in agriculture, forestry and fishing, 179 in crafts and trades, 218 in factory and machine operation, and 77 in elementary occupations. Establishments employing more than 20 workers in these professions must provide licensed shared housing for them, counted at the establishment level.
Qiwa stressed that paying a housing allowance does not exempt an employer from providing licensed housing for workers in the targeted professions, and that the accommodation must meet technical and health standards for a safe and healthy living environment. Workers in non-targeted professions are not covered, and employers may give them either housing or an allowance.
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The TASC Take If you employ larger numbers of skilled-trade, factory or elementary workers, check whether you cross the 20-worker threshold in the listed professions — a housing allowance alone will not keep you compliant. Budget for licensed accommodation that meets the health and safety standards, and factor housing into workforce planning and contract-staffing costs from the start. |
Source: Saudi Gazette
Energy & Oil
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10m bpd pipeline export capacity targeted within two to three years |
Saudi Arabia plans to expand its oil pipeline network to cut its reliance on the Strait of Hormuz, Energy Minister Prince Abdulaziz bin Salman said on 12 October. A gas pipeline is being converted to carry crude as well, and could move around 1 million barrels a day within eight weeks, rising to 3 million with further investment.
"We may end up with 10 million barrels of pipeline within two to three years, that can divert oil to a different destination," the minister said, adding that the government, not Aramco, is footing the bill. The urgency is growing as wars in the Middle East and Ukraine strain global oil supplies. At its 13 October session, the Cabinet also praised the restoration of oil flows through the existing East-West Pipeline, crediting the work of Saudi nationals.
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The TASC Take A multi-year pipeline build means steady demand for engineers, welders, project controllers and HSE (health, safety and environment) staff, often at remote sites. Contractors bidding for this work should line up skilled crews and Saudisation-compliant teams now, before several big energy projects compete for the same people. |
Source: Semafor
Projects & Construction
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$306m facade contract for the Qiddiya stadium, one of 15 planned 2034 World Cup venues |
A Saudi-Chinese consortium has won a SR1.15 billion ($306 million) contract to design, supply and install the curtain-wall facades at Prince Mohammed bin Salman Stadium in Qiddiya, one of the venues planned for the 2034 FIFA World Cup. The joint venture, IKK Fangda JV, pairs China Fangda Group's Shihui International (51%) with Saudi-based Isam Kabbani & Partners (49%), and is expected to finish the work within 863 days.
The 45,000-plus-seat stadium, designed with views of the Tuwaiq cliffs, is one of 15 venues — 11 of them new builds — planned across Riyadh, Jeddah, Al Khobar, Abha and Neom for the tournament. The facade package follows an SR829 million mechanical contract awarded in September, and the deal lands as the government keeps spending on strategic projects despite regional tensions.
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The TASC Take Saudi Arabia's World Cup and giga-project build-out keeps demand high for facade, MEP and civil crews, project controllers and HSE staff — often at tough sites. With 15 stadiums and a wider pipeline competing for the same trades, contractors should lock in skilled, Saudisation-compliant teams early rather than scramble when each package is awarded. |
Source: Arab News
Trade & Ministry
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180 days to put the new General Authority for Foreign Trade and Export in place |
Saudi Arabia's Cabinet, chaired by Crown Prince and Prime Minister Mohammed bin Salman, has approved merging the General Authority for Foreign Trade and the Saudi Export Development Authority into a single body: the General Authority for Foreign Trade and Export. The necessary measures will be taken within 180 days. Prince Abdulaziz bin Salman, Minister of Industry and Mineral Resources, will chair the new authority's board, with the Minister of Commerce as deputy chair.
The merger aims to unify support for Saudi exporters and expand the presence of Saudi products in global markets, in line with goals to grow non-oil exports. At the same 13 October session, the Cabinet approved the GCC Food Security Strategy as a non-binding guideline for three years.
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The TASC Take For exporters, one authority should mean one door for export support, market access and trade disputes. Expect some change in contacts and processes over the next six months. Keep your export paperwork current and watch for new support programmes as the merged body sets out its plans. |
Source: Argaam
Economy
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1.9% annual consumer inflation in September 2026 (GASTAT) |
Saudi Arabia's annual inflation rate held at 1.9% in September 2026, with consumer prices unchanged from August, according to the General Authority for Statistics (GASTAT). Housing, water, electricity, gas and other fuels rose 3.6% year on year, driven by a 3.5% rise in actual housing rents, and made the biggest contribution to inflation. Transport prices rose 2.3% and food and drinks 1.4%, while furniture and household items fell 0.5% and clothing and footwear 0.4%.
Wholesale prices rose faster, up 4.2% year on year, led by a 26.1% jump in basic chemical prices, although they slipped 0.2% from August. The figures come as tension on regional shipping routes threatens to push up freight costs and disrupt supply chains.
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The TASC Take Low headline inflation helps keep pay rises in check, but rent is the cost your people feel most. Expect housing allowances to come up in pay reviews. Wholesale prices rising faster than consumer prices also points to margin pressure for manufacturers and contractors. |
Source: Saudi Gazette via Zawya (GASTAT data)
Investment & Startups
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$1bn raised by Saudi startups across 62 deals in Q3 2026 |
Saudi Arabia led startup funding in the Middle East and North Africa in the third quarter, with about $1 billion raised across 62 deals, more than ten times its second-quarter total, according to Wamda and Digital Digest data reported by Arab News. Fintech took about 62% of the region's Q3 capital, with Barq, Tabby and Lendo together raising $762.5 million.
The nine-month picture is softer. MAGNiTT data shows capital raised by Saudi startups fell almost 30% in the first nine months of 2026, and early-stage deals across the region fell 45%. Recent Saudi rounds include a $12 million Series A for B2B auto-parts platform Autobia, backed by Aramco's Wa'ed Ventures, and a strategic investment from Foodics in fintech Funding Souq, which targets $1 billion of SME financing over three years.
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The TASC Take Big funding rounds turn into hiring fast: engineers, product, sales and compliance staff, often all at once. Fast-growing startups rarely want to build a large HR team early. Contract staffing, payroll and EOR (Employer of Record) let them add people quickly while staying on the right side of Saudisation and labour rules. |
Source: Arab News
Industry & Tourism
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4,938 factories across Saudi Arabia’s 36 industrial cities in 2025, up 18.9% |
Saudi Arabia’s industrial and tourism base expanded sharply in 2025, official figures show. The number of factories in the Kingdom’s 36 industrial cities rose 18.9% to 4,938 — almost 800 more than a year earlier — while the number of hotels jumped 31.6% to 2,847, with hotel rooms passing 491,000, according to the General Authority for Statistics. Travel and tourism agencies grew by more than 400 to 3,177.
Air travel kept pace, with more than 979,000 domestic and international flights carrying nearly 141 million passengers across 29 airports. The growth tracks Vision 2030 goals to double the industrial sector’s contribution to GDP and reach 150 million tourists a year by 2030. Arthur D. Little’s Nicholas Nahas said the rapid rise in hotel supply shows projects are “attracting investment and advancing through construction and handover stages to operators.”
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The TASC Take More factories and hotels mean sustained hiring across manufacturing and hospitality — operators, technicians, front-of-house and management — and a widening need for Saudi talent as localisation tightens. Employers scaling into new plants or properties should line up recruitment, onboarding and payroll early, and use flexible staffing to ramp up without overbuilding fixed headcount. |
Source: Arab News
TASC in Saudi Arabia
Saudization in 2026: key hiring rules for employers
With Saudisation tightening across more professions each quarter and new compliance rules for employers, our guide sets out what changed this year, what it means for your Nitaqat band, and how to stay compliant while you hire.
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