Saudi Arabia’s labor market is changing fast. New data from the State of Hiring in Saudi Arabia 2025–2026 report shows scale, speed, and structure that few regional markets can match. Hiring growth is not random. It follows capital flows, policy shifts, and sector priorities. These signals matter for founders, investors, and operators across the wider MENA-P region. The findings below draw directly from large scale workforce data and HR surveys covering more than 700,000 employees and 4,700 companies .A Labor Market Expanding at Unmatched SpeedRegional Concentration Shapes Opportunity and RiskCompany Size and Hiring Behavior Reveal Market StructureSector Demand Highlights Where Capital Will FlowSaudization and Talent Strategy Shift the Long Term OutlookWhat This Means for MENA-P Founders and Investors A Labor Market Expanding at Unmatched Speed Saudi Arabia recorded a sharp rise in hiring between January 2024 and July 2025. Monthly hiring volumes jumped by 51.5 percent year on year. Average monthly hires rose from about 15,942 in 2024 to 24,155 in 2025. January 2025 alone saw a 154.5 percent increase compared to January 2024. Key indicators stand out: Total workforce in the sample grew by 124 percent in 19 months Enterprises grew headcount by 169 percent Small and mid sized firms added over 12,400 employees per month This pace reflects Vision 2030 execution. It also shows sustained private sector confidence. For the MENA-P region, Saudi Arabia now acts as the primary demand engine for skilled labor. Regional Concentration Shapes Opportunity and Risk Hiring concentrates heavily in Riyadh. The city accounted for more than half of all new hires during the study period. Its monthly average exceeded 15,400 hires in 2025. Mecca and the Eastern Province followed, but at much smaller scale. Regional patterns reveal: Riyadh combined scale with stable growth Eastern Province posted the highest growth rate at 156 percent Mecca expanded hiring by 118 percent Smaller regions showed cyclical and seasonal demand For founders, this concentration creates clear go to market signals. For investors, it highlights where infrastructure, housing, and services must scale next. Secondary cities still offer upside, but timing and sector fit matter more. Company Size and Hiring Behavior Reveal Market Structure Small and mid sized businesses remain the backbone of job creation. They employ the largest share of workers and deliver the highest monthly hiring volumes. Large enterprises, however, lead in relative growth speed. The data shows: SMBs grew headcount by 114 percent Enterprises expanded faster but from a smaller base Micro firms grew modestly at 45 percent Hiring rates also differ. Large enterprises averaged 10 percent monthly new hire rates. SMBs averaged 8.3 percent. Micro firms averaged 5.9 percent. Workforce stability remained high across all sizes, with over 90 percent of employees retained monthly. This balance matters for venture capital. SMB focused tools, HR tech, and productivity platforms face a large, stable buyer base. Sector Demand Highlights Where Capital Will Flow Hiring clustered around services and consumer driven sectors. Food and beverage alone added more than 71,000 hires. Retail, general services, construction, and healthcare followed closely. Top hiring sectors included: Food and beverage at 20 percent share Retail and distribution at 12 percent General services at 10 percent Construction and building at 8 percent Healthcare at 6 percent Technology and consulting also showed steady demand, despite smaller absolute numbers. Survey data showed over 85 percent of IT and telecom firms plan further hiring. This signals long term demand for digital infrastructure, AI, and enterprise software across MENA. Saudization and Talent Strategy Shift the Long Term Outlook Saudi nationals now make up roughly 31 percent of total new hires. Survey responses show strong momentum behind nationalization. More than 60 percent of HR leaders expect expatriate hiring to decline further. Key trends include: 51 percent of firms rely more on national talent 45.1 percent reduced foreign headcount in two years Nearly 60 percent expect further decline in expatriate share This shift creates new opportunities. Education, reskilling, and workforce platforms focused on local talent will see rising demand. At the same time, demand for highly specialized foreign talent will persist in deep tech, healthcare, and engineering. What This Means for MENA-P Founders and Investors Saudi Arabia now sets the hiring tempo for the region. Its labor demand pulls talent, capital, and companies inward. For founders, entering the Saudi market is no longer optional. For VCs, workforce data offers a leading indicator of where value creation will occur next. Clear signals emerge: Build for SMB scale, not edge cases Focu