How big is the Saudi HR tech market — how many workers and employers are there, what does payroll cost, and how do people find jobs?
Saudi Arabia has 13,987,636 workers in social insurance and 19,459,402 in all administrative records (Q2 2026); insured employment was up 8.97% year on year in Q1 2026, and 487,339 people entered insured jobs in a single quarter. The average monthly wage is SAR 11,424 for Saudi nationals against SAR 4,090 for non-Saudi workers, and 650,000 private firms (2023) must run payroll through the Wage Protection System.
GASTAT register-based labour statistics and Labour Force Survey (Q2 2026), ILO wage protection report, Monsha'at, HRDF releases via Saudi Press Agency, World Bank/ILO estimates, SMASCO and Maharah IPO prospectuses, Wamda (funding) · verified as of
Who is on a Saudi payroll: workers in administrative records, mid-2026
Register-based counts from social insurance (GOSI), civil service and domestic-worker records. These are the employees an HR, payroll or WPS product would process — not survey estimates.
| Metric | Value | Segment | Period | Source |
|---|---|---|---|---|
| All workers in administrative records | 19,459,402 | GOSI + civil service + domestic workers | 2026-Q2 | stats.gov.sa |
| Workers registered in social insurance (GOSI) | 13,987,636 | private and public sector under GOSI | 2026-Q2 | stats.gov.sa |
| Private-sector workers | 13,348,541 | 2026-Q2 | stats.gov.sa | |
| Non-Saudi workers in GOSI | 10,820,468 | 2026-Q2 | stats.gov.sa | |
| Saudi nationals in GOSI | 3,167,168 | 2026-Q2 | stats.gov.sa | |
| Saudi nationals in the private sector | 2,652,023 | 2026-Q2 | stats.gov.sa | |
| Saudi women in GOSI | 1,284,588 | 2026-Q2 | stats.gov.sa | |
| Registered domestic workers | 4,346,173 | all non-Saudi; household employers | 2026-Q2 | stats.gov.sa |
| Employees under civil-service regulations | 1,125,593 | government | 2026-Q2 | stats.gov.sa |
| Year-on-year growth in GOSI-registered workers | 8.97% | Q1 2026 vs Q1 2025 | 2026-Q1 | stats.gov.sa |
| Three-year growth rate (CAGR) of GOSI-registered workers | 10.22% a year | Q1 2023 to Q1 2026 | 2023-Q1..2026-Q1 | stats.gov.sa |
Hiring and exits in one quarter: social-insurance entries and suspensions, Q2 2026
Gross flows through GOSI in a single quarter. New participants are hires into insured jobs; suspensions are people whose insured employment stopped. Flows of this size are the onboarding and offboarding volume HR software handles.
| Metric | Value | Segment | Period | Source |
|---|---|---|---|---|
| New participants entering social insurance | 487,339 | all nationalities, per quarter | 2026-Q2 | stats.gov.sa |
| — of which non-Saudi | 323,467 | per quarter | 2026-Q2 | stats.gov.sa |
| — of which Saudi nationals | 163,872 | per quarter | 2026-Q2 | stats.gov.sa |
| — of which Saudi women | 75,934 | per quarter | 2026-Q2 | stats.gov.sa |
| Participants suspended in the quarter | 245,567 | all nationalities, per quarter | 2026-Q2 | stats.gov.sa |
| — of which non-Saudi | 142,149 | per quarter | 2026-Q2 | stats.gov.sa |
| — of which Saudi nationals | 103,418 | per quarter | 2026-Q2 | stats.gov.sa |
| New entrants aged 20–24 | 90,418 | all nationalities, per quarter | 2026-Q2 | stats.gov.sa |
| New entrants aged 25–29 | 123,010 | largest age band, per quarter | 2026-Q2 | stats.gov.sa |
| New entrants aged 30–34 | 84,331 | per quarter | 2026-Q2 | stats.gov.sa |
Where the insured workforce sits: GOSI participants by activity, Q2 2026
Same register, split by the employer's economic activity. Construction alone holds more insured workers than retail and manufacturing combined (calculation from the rows below).
| Metric | Value | Segment | Period | Source |
|---|---|---|---|---|
| Construction | 3,348,143 | 2026-Q2 | stats.gov.sa | |
| Wholesale and retail trade | 1,803,668 | 2026-Q2 | stats.gov.sa | |
| Administrative and support services | 1,526,099 | includes manpower and staffing firms | 2026-Q2 | stats.gov.sa |
| Manufacturing | 1,489,483 | 2026-Q2 | stats.gov.sa | |
| Transportation and storage | 835,816 | 2026-Q2 | stats.gov.sa | |
| Accommodation and food services | 706,727 | 2026-Q2 | stats.gov.sa | |
| Human health and social work | 483,633 | 2026-Q2 | stats.gov.sa | |
| Education | 310,181 | 2026-Q2 | stats.gov.sa | |
| Professional, scientific and technical | 300,645 | 2026-Q2 | stats.gov.sa | |
| Information and communication | 182,917 | 2026-Q2 | stats.gov.sa | |
| Financial and insurance | 109,390 | 2026-Q2 | stats.gov.sa |
What they do: GOSI participants by occupation, Q2 2026
Elementary occupations are the largest group and almost entirely non-Saudi; professionals are the second largest.
| Metric | Value | Segment | Period | Source |
|---|---|---|---|---|
| Elementary occupations | 6,006,568 | 2026-Q2 | stats.gov.sa | |
| Professionals | 1,975,497 | 2026-Q2 | stats.gov.sa | |
| Plant and machine operators | 1,444,293 | 2026-Q2 | stats.gov.sa | |
| Craft and related trades | 1,258,555 | 2026-Q2 | stats.gov.sa | |
| Technicians and associate professionals | 1,190,855 | 2026-Q2 | stats.gov.sa | |
| Service and sales workers | 996,396 | 2026-Q2 | stats.gov.sa | |
| Clerical support workers | 651,686 | 2026-Q2 | stats.gov.sa | |
| Managers | 428,069 | 2026-Q2 | stats.gov.sa |
The buyers: how many employers there are and how small they are
Different registers count different units (establishments, enterprises, WPS-covered firms), so the rows give an order of magnitude rather than one total.
| Metric | Value | Segment | Period | Source |
|---|---|---|---|---|
| Micro-enterprises (1–5 employees) | 1,138,588 | establishments | 2023 | monshaat.gov.sa |
| Private enterprises covered by the Wage Protection System | 650,000 | every private employer must pay wages through WPS | 2023 | ilo.org |
| Establishments using HRDF services | 171,000 | first half of 2026 | 2026-H1 | spa.gov.sa |
| Growth in establishments using HRDF services | +25% | year on year | 2026-H1 | spa.gov.sa |
| SMEs and micro firms among establishments using HRDF | 95% | 2026-H1 | spa.gov.sa | |
| Employers as a share of total employment | 3.9% | ILO modelled estimate | 2024 | api.worldbank.org |
What payroll costs: average monthly wage per paid employee, Q2 2026 (SAR)
Labour Force Survey averages. The gap between Saudi and non-Saudi wages is the core of the payroll cost structure that Saudization rules act on.
| Metric | Value | Segment | Period | Source |
|---|---|---|---|---|
| All paid employees | SAR 5,794 | 2026-Q2 | stats.gov.sa | |
| Saudi nationals | SAR 11,424 | 2026-Q2 | stats.gov.sa | |
| Saudi women | SAR 9,249 | 2026-Q2 | stats.gov.sa | |
| Non-Saudi workers | SAR 4,090 | 2026-Q2 | stats.gov.sa | |
| Non-Saudi women | SAR 2,395 | 2026-Q2 | stats.gov.sa | |
| Saudi nationals aged 25–34 | SAR 9,255 | 2026-Q2 | stats.gov.sa | |
| Non-Saudi workers aged 25–34 | SAR 3,072 | 2026-Q2 | stats.gov.sa | |
| All nationalities aged 15–24 | SAR 2,939 | 2026-Q2 | stats.gov.sa | |
| All nationalities aged 45–54 | SAR 7,847 | 2026-Q2 | stats.gov.sa |
How Saudis look for work: job-search methods of the unemployed
Share of unemployed people using each method (several methods per person). The state platform Jadarat is used by about half of unemployed Saudis — and by none of the non-Saudi unemployed in the survey.
| Metric | Value | Segment | Period | Source |
|---|---|---|---|---|
| Applying directly to employers — unemployed Saudis | 76.8% | 2026-Q2 | stats.gov.sa | |
| Jadarat national employment platform — unemployed Saudis | 53.5% | 2026-Q2 | stats.gov.sa | |
| Jadarat — unemployed Saudi women | 57.54% | 2026-Q2 | stats.gov.sa | |
| Jadarat — unemployed non-Saudis | 0% | 2026-Q2 | stats.gov.sa | |
| Posting or updating a résumé on professional or social networks — all unemployed | 47.06% | 2026-Q2 | stats.gov.sa | |
| Asking friends and relatives — all unemployed | 51.94% | 2026-Q2 | stats.gov.sa | |
| Friends and relatives — unemployed non-Saudis | 63.43% | 2026-Q2 | stats.gov.sa | |
| Contacting private employment offices — all unemployed | 29.51% | 2026-Q2 | stats.gov.sa | |
| Average number of search methods per unemployed person | 3.4 | 2026-Q2 | stats.gov.sa |
The candidate pool: unemployment, participation and willingness to take private-sector jobs
Saudi nationals are the pool Saudization quotas draw on; long-term unemployment shows how slowly the matching works.
| Metric | Value | Segment | Period | Source |
|---|---|---|---|---|
| Unemployment rate, total population | 3.0% | Saudis and non-Saudis | 2026-Q2 | stats.gov.sa |
| Unemployment rate, Saudi nationals | 6.5% | 2026-Q2 | stats.gov.sa | |
| Unemployment rate, Saudi women | 9.56% | 2026-Q2 | stats.gov.sa | |
| Labour force participation, Saudi nationals | 48.7% | 2026-Q2 | stats.gov.sa | |
| Labour force participation, Saudi women | 33.68% | 2026-Q2 | stats.gov.sa | |
| Unemployed Saudis out of work 12 months or more | 54.52% | share of unemployed Saudis | 2026-Q2 | stats.gov.sa |
| Unemployed Saudi women out of work 12 months or more | 56.03% | share of unemployed Saudi women | 2026-Q2 | stats.gov.sa |
| Unemployed Saudis willing to take a private-sector job | 96.75% | 2026-Q2 | stats.gov.sa | |
| Youth (15–24) not in employment, education or training | 16.39% | ILO estimate | 2025 | rplumber.ilo.org |
Public money in hiring and training: the Human Resources Development Fund (HRDF)
HRDF subsidises training and wages of Saudis hired into the private sector — a payer that sits beside the employer.
| Metric | Value | Segment | Period | Source |
|---|---|---|---|---|
| HRDF spending on training, empowerment and guidance | SAR 8.296 billion | full year | 2025 | spa.gov.sa |
| HRDF direct support to individuals and establishments | SAR 4.9 billion | first half of 2026 | 2026-H1 | spa.gov.sa |
| Saudis employed in the private sector with HRDF support | 560,000 | full year | 2025 | spa.gov.sa |
| Saudis employed with HRDF support | 329,000 | first half of 2026 | 2026-H1 | spa.gov.sa |
| Growth in HRDF-supported placements | +23% | H1 2026 vs H1 2025 | 2026-H1 | spa.gov.sa |
How the listed manpower companies make money
The two listed Saudi manpower firms disclose their economics in IPO prospectuses: low gross margins, almost no marketing spend, revenue per deployed worker. The Maharah figures are older than three years and shown for history.
| Metric | Value | Segment | Period | Source |
|---|---|---|---|---|
| SMASCO revenue, last full year before IPO | SAR 1,839,889 thousand | FY2022 | 2022 | cma.org.sa |
| SMASCO gross profit margin | 12.9% | 2022 | cma.org.sa | |
| SMASCO net profit margin | 8.2% | 2022 | cma.org.sa | |
| SMASCO marketing expenses as share of revenue | 1.8% | 2022 | cma.org.sa | |
| SMASCO annual revenue per deployed worker, corporate segment | SAR 56,791 | 2022 | cma.org.sa | |
| SMASCO IPO valuation to revenue | 1.63× | 2024 | cma.org.sa | |
| Maharah gross profit marginhistorical | 25.0% | 2017 | cma.org.sa | |
| Maharah net income marginhistorical | 17.4% | 2017 | cma.org.sa |
Venture funding for HR tech startups, 2025
Deal counts from a startup-data provider; small numbers of deals, so one round moves the total.
| Metric | Value | Segment | Period | Source |
|---|---|---|---|---|
| Saudi Arabia — HR tech funding raised | $11M | 4 deals · proxy: single industry source | 2025 | wamda.com |
| Saudi Arabia — HR tech deals | 4 | proxy: single industry source | 2025 | wamda.com |
| UAE — HR tech funding raised | $43M | 8 deals · proxy: single industry source | 2025 | wamda.com |
| MENA — HR tech funding raised | $55.9M | 17 deals · proxy: single industry source | 2025 | wamda.com |
Rules that make payroll a compliance product
The Wage Protection System ties every private payroll to social-insurance records and to enforcement.
| Metric | Value | Segment | Period | Source |
|---|---|---|---|---|
| Wage Protection System: all private-sector employers pay wages through authorised financial institutions | in force | rollout from 1 June 2013; every private entity covered since 31 December 2020 | since 2013 | ilo.org |
| WPS compliance thresholds by company size and the Mudad escalation calendar | in force | payroll files checked against GOSI registration | since December 2020 | ilo.org |
| Sanctions for wage non-payment: fine per worker and staged suspension of ministry services | in force | since 31 December 2020 | ilo.org | |
| Wage-violation inspections carried out per year | 100,000 | 2023 | ilo.org | |
| Labour inspectors working with the WPS | 1,000 | 2023 | ilo.org |
Why Saudi workforce and employer numbers disagree
The counts come from different registers. GOSI covers insured employees in the private sector and part of the public sector; civil-service employees and domestic workers sit in separate records, which is why the Saudi administrative total (19,459,402) is far above the Saudi GOSI count (13,987,636). Domestic workers are employed by households, not firms, and are a different buyer from a company HR department. Employer counts also use different units: Monsha'at counts establishments by size, the ILO report counts enterprises covered by WPS, and HRDF counts establishments that used its services in a period — none of them is a census of employers. Unemployment and wage rows come from the Labour Force Survey, a household survey, not from registers. Job-search methods are asked only of the unemployed, so they describe how jobseekers search, not how employers hire. The listed manpower companies are labour suppliers, not software vendors: their margins describe the staffing business. Funding rows come from a single startup-data provider and cover a handful of deals.
GASTAT — Register-based Labour Market Statistics Q2 2026 · GASTAT — Labour Market Statistics Q2 2026 · ILO — Wage protection systems in the Arab States · Monsha'at — SME statistics
Methodology
Every number on this page is a fact node in the God of Startups Atlas — a knowledge graph where each metric carries its source URL, reporting period, evidence tier and the verbatim quote it was taken from. Tier 1 means official or statutory sources (GASTAT, ILO, Monsha'at, HRDF, Capital Market Authority prospectuses); tier 3 rows come from a single startup-data provider (Wamda) and are marked as proxy. Values are shown in the currency the source reports; nothing is converted, estimated or modelled.
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