Saudi Arabia's Expat Workforce Shrinks for the First Time in Over Two Years
The number of foreign workers in Saudi Arabia, excluding domestic workers, fell by 16,000 in the three months to June 2026, led by fewer construction jobs, according to official data reported by Semafor.
Saudi ArabiaIn brief
- Foreign workers in Saudi Arabia, excluding domestic workers, fell by 16,000 in the three months to June 2026.
- It is the first fall in more than two years, driven mainly by fewer construction jobs.
- Some state-linked projects trimmed staff or did not renew contracts after budget cuts, and NEOM was scaled back.
- PMI surveys suggest private-sector hiring is picking up again.
| Country | Saudi Arabia |
|---|---|
| Organization | Saudi General Authority for Statistics (GASTAT) data |
| Official source | Semafor – reporting Saudi Arabia's quarterly labour market data ✓ semafor.com |
Saudi Arabia's foreign workforce has shrunk for the first time in more than two years. According to official quarterly data reported by Semafor on 6 October 2026, the number of foreign workers, excluding domestic workers, fell by 16,000 in the three months to June 2026.
What is behind the fall
| Factor | Details |
|---|---|
| Construction | The main driver, with fewer construction jobs |
| State-linked projects | Some trimmed staff or did not renew contracts after budget cuts |
| NEOM | Significantly scaled back |
| Regional conflict | Hurt the region's image as a safe place to work |
Another sign: the number of medical insurance policies for expats did not grow in the first half of 2026, suggesting fewer new arrivals.
What has not changed
- The unemployment rate for Saudi citizens was unchanged.
- The economy is still creating jobs, but more slowly.
Signs of recovery
Purchasing managers' surveys point to private-sector hiring picking up. The Cooper Fitch Gulf Employment Index showed Saudi hiring up 1.5% in Q3 2026, as companies grew sales and technical teams. Energy was the fastest-growing sector across the Gulf. Read: UAE hiring rebounds 4% in Q3 2026.
What it means for job seekers
- Construction workers: expect fewer openings and more competition on Saudi projects for now.
- Skilled professionals: demand continues in energy, technical and sales roles, and skilled workers can now bring family sooner. Read: Saudi family visas alongside work visas.
- Check every offer carefully. In a slower market, fake job offers increase. Never pay for a visa.
Related: Saudi Arabia opens 4,291 healthcare jobs.
Frequently asked questions
Are expat jobs falling in Saudi Arabia?
In Q2 2026, foreign workers (excluding domestic workers) fell by 16,000, the first decline in more than two years, mainly in construction. Purchasing managers' surveys suggest hiring is starting to recover.
Why are fewer expats working in Saudi construction?
According to the report, some state-controlled projects had budgets cut, leading to fewer contract renewals, and the NEOM project was significantly scaled back. The regional conflict also played a role.
Is it still worth looking for jobs in Saudi Arabia?
Yes, but focus on growing areas. Q3 2026 data from Cooper Fitch showed Saudi hiring up 1.5%, with energy and technical roles in demand.
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