CAIRO: As Saudi Arabia competes globally for highly specialized talent, employers are increasingly recognizing that attracting top professionals requires more than competitive salaries.
For many international experts considering relocation to the Kingdom, the decision often hinges on two practicalities — where their family will live and where their children will study.
Housing and schooling benefits are therefore emerging as critical tools in Saudi Arabia’s talent strategy, particularly as the country accelerates economic diversification under Vision 2030.
A recent analysis from Mercer highlights how these benefits are evolving across the region. The firm’s 2025 Middle East Housing and Schooling Report shows that many employers are re-evaluating these policies as competition for specialized talent intensifies.
“Candidates increasingly treat housing and schooling support as core components of the offer, not peripheral benefits,” Aleksei Kolesnik, career products manager at Mercer Middle East, told Arab News.
“They determine whether families can relocate in a practical and financially predictable way.”
Family factor in global talent mobility
Saudi Arabia’s demand for highly skilled professionals is expanding rapidly as major projects and new industries take shape in areas such as technology, tourism, renewable energy and finance.
Global surveys reflect the Kingdom’s rising appeal. In the Decoding Global Talent 2024 survey of more than 150,000 professionals across 188 countries, Saudi Arabia ranked 26th worldwide as a preferred destination for international workers.
But attracting experienced professionals — particularly those in mid-career leadership roles — often involves relocating entire families, making lifestyle considerations just as important as compensation.
“We all witnessed first-hand the historic socio-economic transformation of the Kingdom over the last decade,” Yigit Saf, principal at Arthur D. Little Middle East, told Arab News.
“The next phase of growth will depend heavily on productivity improvements, which require specialized talent. But that talent rarely moves alone.”
Saf noted that many professionals considering relocation fall between the ages of 30 and 55 and frequently decline otherwise attractive job offers due to concerns about housing quality or their children’s education.
“In this regard, proactive and holistic management of social capital — with housing and schooling as key pillars — is not a nice-to-have,” he said. “It is a key requirement to drive Saudi Arabia’s transition toward a knowledge-based economy.”
Housing and education as core benefits
Mercer’s report suggests that employers are increasingly formalizing these benefits to remain competitive.
In Saudi Arabia, 75 percent of organizations surveyed provide a separate housing allowance, while about 20 percent include housing within a consolidated allowance and a smaller number offer total cash packages.
Housing allowances also rose by an average of 8 percent between 2024 and 2025, reflecting pressure from rising rental costs.
Payment structures can also influence the employee experience. Nearly half of organizations now provide housing allowances in advance rather than monthly — a practice that can help employees manage large upfront rent payments common in the region.
“Advance housing payments can reduce friction where lump-sum rent payments are common and employees may need support,” Kolesnik said.
Schooling support is even more widespread. According to Mercer, 83 percent of organizations surveyed offer schooling benefits, typically covering kindergarten through high school and often limited to three children.
The policies vary, however. Around 45 percent of companies apply the same schooling benefits to all eligible employees, while 55 percent differentiate by seniority or job level.
“Schooling allowances are often expected to be sufficient for international education pathways,” Kolesnik said. “At the same time, housing allowances must keep pace with inflation and local rental market conditions.”
Relocation costs
For many expatriate professionals, housing and education represent the largest expenses associated with moving abroad.
Some prestigious international schools in Riyadh charge up to SR100,000 ($26,600) per child annually, while leading schools in Jeddah range between SR40,000 and SR90,000.
Housing costs can also be substantial. Villas in residential compounds often rent for more than SR120,000 per year and can exceed SR200,000 in high-end developments.
Matteo Gamberale, chief growth officer at business research provider Infomineo, said these costs can significantly shape relocation decisions, particularly for senior specialists.
“In many cases, expatriate packages include housing allowances equivalent to 20 to 25 percent of base salary or direct accommodation,” Gamberale told Arab News.
Combined with the absence of personal income tax and relatively lower living costs compared with cities like London or New York, these benefits can translate into significantly higher disposable income for professionals relocating to the Kingdom.
Yet financial incentives alone may not guarantee long-term retention.
“In the global competition for senior advisers and AI specialists, money alone cannot buy the stability and belonging required for long-term success,” Gamberale said.
Critical first six months
Industry experts say the most challenging period for expatriate hires is often the first few months after relocation.
Gamberale described this phase as the “bathtub mortality curve” — a period when employees must navigate administrative procedures, secure housing and enroll children in schools while simultaneously starting demanding new roles.
“If a firm leaves a new hire to navigate this chaos alone, they risk early failure of the assignment,” he said.
During this period, employers that provide relocation assistance and family-focused support can significantly reduce attrition risk.
“Professionals who are distracted by a spouse’s isolation or a child’s school registration cannot deliver the strategic value they were hired for,” Gamberale added.
Increasingly, companies are adopting concierge-style relocation support to help families settle before employees fully transition into their roles.
Building long-term stability
Beyond recruitment, housing and schooling benefits also influence retention.
According to Saf, these benefits help create what companies describe as “stickiness” — encouraging employees to build deeper social and financial roots in the Kingdom.
“Companies in Saudi Arabia are already using housing and schooling benefits to boost the stickiness of talent in line with employees’ life stages,” he said.
In recent years, this shift has helped increase the average duration of expatriate assignments in the Kingdom.
Belonging, Saf added, plays an important role in building institutional knowledge within organizations.
“When employees feel rooted, they accumulate tacit knowledge that strengthens the broader economy,” he said.
Family stability as a competitive advantage
For many employers, the real strategic shift is recognizing that relocation decisions are rarely made by individuals alone.
Mohammad Shafi, business consulting expert at Global Saudi Partners, said family considerations increasingly determine whether top international professionals accept roles in the Kingdom.
“Housing and schooling benefits are no longer peripheral perks in Saudi Arabia’s talent strategy — they are becoming decisive incentives in attracting the niche expertise required to deliver the Kingdom’s transformation agenda,” Shafi told Arab News.
He noted that senior executives and specialized experts relocating from global cities often benchmark their living conditions against international standards.
Well-located housing near business districts and reliable access to reputable international schools can significantly strengthen Saudi Arabia’s value proposition, particularly for professionals relocating with spouses and children.
When these factors are aligned, relocation decisions become easier and long-term commitment more likely, he added.
Policy reforms supporting talent attraction
Saudi Arabia is also implementing broader reforms aimed at making the country more attractive to global professionals.
Initiatives such as the Premium Residency program — often referred to as the Saudi Green Card — allow skilled workers, entrepreneurs and investors to live and work in the Kingdom long term while gaining greater economic and lifestyle stability.
More than 2,600 healthcare professionals joined the program during one intake, reflecting strong demand among specialized workers.
At the same time, Saudi Arabia introduced skill-based work permits in 2025, categorizing foreign workers into high-skill, skilled and basic categories to better attract specialized professionals.
Together, these policies signal a shift from short-term expatriate employment toward longer-term talent integration.
The road ahead
As Saudi Arabia’s economy continues to diversify, experts say the next phase of the Kingdom’s talent strategy will increasingly focus on quality of life.
Housing ecosystems near emerging business districts, expanded international school capacity and integrated residential communities are expected to play a larger role in attracting global professionals.
For employers competing for scarce expertise in fields such as technology, consulting and advanced industries, aligning housing and schooling benefits may ultimately prove as critical as salary packages.
In the race for global talent, the Kingdom’s success may depend not only on the opportunities it offers professionals — but also on the stability and future it provides for their families.
