While the big banking groups (and tech giants) of the West are tackling massive layoffs and pay cuts, jobs in banks remains in abundance and wages are rising in a corner of the world that no one could have imagined, Saudi Arabia. This is a wage boom thanks to the expansionist policies of Crown Prince Mohammed bin Salman, whose treasury is full of cash from oil exports and who is determined to turn the country into an economic powerhouse. State agencies such as the State Investment Fund, with over $600 billion in assets, often hire at breakneck speed from foreign companies based in the country.

Wall Street banks, according to Bloomberg, are also desperate to expand due to announcements of business deals in light of major economic reforms in the country. But all this remains a problem.

While Saudi leader Bin Salman has loosened many social norms, alcohol is still banned, and extramarital affairs and homosexuality remain hellish “crimes against morality.” Strict regulations and the prospect of a monotonous lifestyle in Riyadh often make foreigners reluctant to move there, and experienced local staff are in short supply. According to the bankers, this fuels competition in the search for talent and raises wages. Recruiter Hayes estimates that most bank executives in Saudi Arabia can earn about 20 percent more than their counterparts in Western financial centers.

Strict regulations and the prospect of a monotonous lifestyle in Riyadh are fueling competition and boosting wages, bankers say.

According to staffing firm Mark Williams, expatriate executives looking to relocate here from nearby Dubai can charge between 20% and 35% additional fees. Senior employees have the ability to demand even more. “Saudi Arabia is like China two decades ago,” said Carmen Haddad, vice president of Citigroup and senior government official. At the same time, rapid economic reforms are creating new challenges, “such as the ongoing struggle to identify talent in the financial sector,” said Haddad, who helped restore the bank’s footprint after a 13-year absence.

According to a study by Hays, VP positions in Saudi Arabia account for between $225,000 and $255,000 a year. According to a 2022 Dartmouth Partners report, this is around 10-20% higher than wages in London. Bonuses typically exceed 100% of a banker’s salary in good years.

Meanwhile, the State Investment Fund is hiring and expanding rapidly to wean the country off oil, and employs 2,000 people today, up from 40 a decade ago. He offers a 30 percent increase on current wages, according to people familiar with the matter. Most packages also include room and tuition fees, round-trip airfare, and a tax-free salary, meaning there is a huge incentive for expats moving to Saudi Arabia from countries like the UK.