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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.

MetricValueSegmentPeriodSource
All workers in administrative records19,459,402GOSI + civil service + domestic workers2026-Q2stats.gov.sa
Workers registered in social insurance (GOSI)13,987,636private and public sector under GOSI2026-Q2stats.gov.sa
Private-sector workers13,348,5412026-Q2stats.gov.sa
Non-Saudi workers in GOSI10,820,4682026-Q2stats.gov.sa
Saudi nationals in GOSI3,167,1682026-Q2stats.gov.sa
Saudi nationals in the private sector2,652,0232026-Q2stats.gov.sa
Saudi women in GOSI1,284,5882026-Q2stats.gov.sa
Registered domestic workers4,346,173all non-Saudi; household employers2026-Q2stats.gov.sa
Employees under civil-service regulations1,125,593government2026-Q2stats.gov.sa
Year-on-year growth in GOSI-registered workers8.97%Q1 2026 vs Q1 20252026-Q1stats.gov.sa
Three-year growth rate (CAGR) of GOSI-registered workers10.22% a yearQ1 2023 to Q1 20262023-Q1..2026-Q1stats.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.

MetricValueSegmentPeriodSource
New participants entering social insurance487,339all nationalities, per quarter2026-Q2stats.gov.sa
— of which non-Saudi323,467per quarter2026-Q2stats.gov.sa
— of which Saudi nationals163,872per quarter2026-Q2stats.gov.sa
— of which Saudi women75,934per quarter2026-Q2stats.gov.sa
Participants suspended in the quarter245,567all nationalities, per quarter2026-Q2stats.gov.sa
— of which non-Saudi142,149per quarter2026-Q2stats.gov.sa
— of which Saudi nationals103,418per quarter2026-Q2stats.gov.sa
New entrants aged 20–2490,418all nationalities, per quarter2026-Q2stats.gov.sa
New entrants aged 25–29123,010largest age band, per quarter2026-Q2stats.gov.sa
New entrants aged 30–3484,331per quarter2026-Q2stats.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).

MetricValueSegmentPeriodSource
Construction3,348,1432026-Q2stats.gov.sa
Wholesale and retail trade1,803,6682026-Q2stats.gov.sa
Administrative and support services1,526,099includes manpower and staffing firms2026-Q2stats.gov.sa
Manufacturing1,489,4832026-Q2stats.gov.sa
Transportation and storage835,8162026-Q2stats.gov.sa
Accommodation and food services706,7272026-Q2stats.gov.sa
Human health and social work483,6332026-Q2stats.gov.sa
Education310,1812026-Q2stats.gov.sa
Professional, scientific and technical300,6452026-Q2stats.gov.sa
Information and communication182,9172026-Q2stats.gov.sa
Financial and insurance109,3902026-Q2stats.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.

MetricValueSegmentPeriodSource
Elementary occupations6,006,5682026-Q2stats.gov.sa
Professionals1,975,4972026-Q2stats.gov.sa
Plant and machine operators1,444,2932026-Q2stats.gov.sa
Craft and related trades1,258,5552026-Q2stats.gov.sa
Technicians and associate professionals1,190,8552026-Q2stats.gov.sa
Service and sales workers996,3962026-Q2stats.gov.sa
Clerical support workers651,6862026-Q2stats.gov.sa
Managers428,0692026-Q2stats.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.

MetricValueSegmentPeriodSource
Micro-enterprises (1–5 employees)1,138,588establishments2023monshaat.gov.sa
Private enterprises covered by the Wage Protection System650,000every private employer must pay wages through WPS2023ilo.org
Establishments using HRDF services171,000first half of 20262026-H1spa.gov.sa
Growth in establishments using HRDF services+25%year on year2026-H1spa.gov.sa
SMEs and micro firms among establishments using HRDF95%2026-H1spa.gov.sa
Employers as a share of total employment3.9%ILO modelled estimate2024api.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.

MetricValueSegmentPeriodSource
All paid employeesSAR 5,7942026-Q2stats.gov.sa
Saudi nationalsSAR 11,4242026-Q2stats.gov.sa
Saudi womenSAR 9,2492026-Q2stats.gov.sa
Non-Saudi workersSAR 4,0902026-Q2stats.gov.sa
Non-Saudi womenSAR 2,3952026-Q2stats.gov.sa
Saudi nationals aged 25–34SAR 9,2552026-Q2stats.gov.sa
Non-Saudi workers aged 25–34SAR 3,0722026-Q2stats.gov.sa
All nationalities aged 15–24SAR 2,9392026-Q2stats.gov.sa
All nationalities aged 45–54SAR 7,8472026-Q2stats.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.

MetricValueSegmentPeriodSource
Applying directly to employers — unemployed Saudis76.8%2026-Q2stats.gov.sa
Jadarat national employment platform — unemployed Saudis53.5%2026-Q2stats.gov.sa
Jadarat — unemployed Saudi women57.54%2026-Q2stats.gov.sa
Jadarat — unemployed non-Saudis0%2026-Q2stats.gov.sa
Posting or updating a résumé on professional or social networks — all unemployed47.06%2026-Q2stats.gov.sa
Asking friends and relatives — all unemployed51.94%2026-Q2stats.gov.sa
Friends and relatives — unemployed non-Saudis63.43%2026-Q2stats.gov.sa
Contacting private employment offices — all unemployed29.51%2026-Q2stats.gov.sa
Average number of search methods per unemployed person3.42026-Q2stats.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.

MetricValueSegmentPeriodSource
Unemployment rate, total population3.0%Saudis and non-Saudis2026-Q2stats.gov.sa
Unemployment rate, Saudi nationals6.5%2026-Q2stats.gov.sa
Unemployment rate, Saudi women9.56%2026-Q2stats.gov.sa
Labour force participation, Saudi nationals48.7%2026-Q2stats.gov.sa
Labour force participation, Saudi women33.68%2026-Q2stats.gov.sa
Unemployed Saudis out of work 12 months or more54.52%share of unemployed Saudis2026-Q2stats.gov.sa
Unemployed Saudi women out of work 12 months or more56.03%share of unemployed Saudi women2026-Q2stats.gov.sa
Unemployed Saudis willing to take a private-sector job96.75%2026-Q2stats.gov.sa
Youth (15–24) not in employment, education or training16.39%ILO estimate2025rplumber.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.

MetricValueSegmentPeriodSource
HRDF spending on training, empowerment and guidanceSAR 8.296 billionfull year2025spa.gov.sa
HRDF direct support to individuals and establishmentsSAR 4.9 billionfirst half of 20262026-H1spa.gov.sa
Saudis employed in the private sector with HRDF support560,000full year2025spa.gov.sa
Saudis employed with HRDF support329,000first half of 20262026-H1spa.gov.sa
Growth in HRDF-supported placements+23%H1 2026 vs H1 20252026-H1spa.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.

MetricValueSegmentPeriodSource
SMASCO revenue, last full year before IPOSAR 1,839,889 thousandFY20222022cma.org.sa
SMASCO gross profit margin12.9%2022cma.org.sa
SMASCO net profit margin8.2%2022cma.org.sa
SMASCO marketing expenses as share of revenue1.8%2022cma.org.sa
SMASCO annual revenue per deployed worker, corporate segmentSAR 56,7912022cma.org.sa
SMASCO IPO valuation to revenue1.63×2024cma.org.sa
Maharah gross profit marginhistorical25.0%2017cma.org.sa
Maharah net income marginhistorical17.4%2017cma.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.

MetricValueSegmentPeriodSource
Saudi Arabia — HR tech funding raised$11M4 deals · proxy: single industry source2025wamda.com
Saudi Arabia — HR tech deals4proxy: single industry source2025wamda.com
UAE — HR tech funding raised$43M8 deals · proxy: single industry source2025wamda.com
MENA — HR tech funding raised$55.9M17 deals · proxy: single industry source2025wamda.com

Rules that make payroll a compliance product

The Wage Protection System ties every private payroll to social-insurance records and to enforcement.

MetricValueSegmentPeriodSource
Wage Protection System: all private-sector employers pay wages through authorised financial institutionsin forcerollout from 1 June 2013; every private entity covered since 31 December 2020since 2013ilo.org
WPS compliance thresholds by company size and the Mudad escalation calendarin forcepayroll files checked against GOSI registrationsince December 2020ilo.org
Sanctions for wage non-payment: fine per worker and staged suspension of ministry servicesin forcesince 31 December 2020ilo.org
Wage-violation inspections carried out per year100,0002023ilo.org
Labour inspectors working with the WPS1,0002023ilo.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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