Expatriates Across Saudi Arabia Are Increasingly Stretched As Living Costs Rise Faster Than Their Salaries—while Saudi Nationals Continue To Out-earn Expats By A Significant Margin. Here's A Comprehensive, SEO-optimized Breakdown.

Inflation Pressures: Headline Vs. Reality

Official Inflation In June 2025 Was 2.3%, Up Slightly From 2.2% In May. Yet Core Costs—especially Housing—tell Another Story: Rents Rose 6.5%, With Villa Prices Up 7.1%. In Riyadh, Certain Apartment And Villa Rentals Have Climbed As Much As 12% Year-on-year.

Source: Argaam

Salary Stagnation: Raises That Don’t Keep Up

Expats Are Not Seeing Real Salary Growth: 

● Annual Salary Increments Hover At Just 2–5%, With Many Companies Skipping Raises Altogether In 2024.
● Job-hopping Raises Are Now 10–20%, Down From The 50–100% Leaps Seen In Previous Years.
● Salary Hikes Vary By Industry: The Tech, Energy, And Life Sciences Sectors May See 4–10%, While Sectors Like Hospitality See 0–3%.

Cost Of Living In Saudi Arabia 2025: What Expats Pay

➤Housing & Utilities

▪ 1-BHK Apartment (Riyadh):  ~SAR 80,000/year
▪ 2-BHK In Riyadh: SAR 36,000–84,000/year (SAR 3,000–7,000/month) Depending On Location And Amenities. In Popular Areas Like Al Aqiq, Al Yasmin, Al         Malqa: Around SAR 70,000–90,000/year (SAR 5,800–7,500/month). 
▪ 3-BHK SAR 48,000–84,000/year, With Premium Compounds Going Above SAR 180,000/year.
▪ 5-BHK Villa:  ~SAR 183,000/year
▪ Compounds:  SAR 50,000–100,000/year

Source: Sandsofwealth  | Realestatesaudi  |  Reddit

➤Utilities & Internet:  SAR 800–1,200/month 

➤Groceries & Food

▪ Monthly Groceries:  SAR 800–1,500 For A Family
▪ Coffee:  SAR 15–25
▪ Imported Goods:  30–40% Pricier 

➤Transportation

▪ Petrol:  ~SAR 2.3/liter
▪ Metro:  SAR 4–6 Per Trip
▪ Ride-hailing:  From SAR 15–20 

➤Healthcare & Insurance

▪ Insurance:  SAR 500–1,500/month
▪ Doctor’s Visit:  SAR 100–250

➤Education Costs: Tuition Per Child

● General Range For International School Tuition:  SAR 40,000 To SAR 100,000 Per Child Per Year, Depending On Grade Level And Reputation.
Preschool/Kindergarten: Between SAR 20,000 And SAR 50,000 Annually.

● American International School Of Jeddah (AISJ) (example):
◦Grades 1-5: SAR 61,400 Tuition (+ VAT) ≈ SAR 70,610/year
◦Grades 11–12: SAR 91,400 Tuition (+ VAT) ≈ SAR 105,110/year

● SEK International School Riyadh (IB Curriculum):  Annual Fees Escalate With Grade—from SAR 59,800 (Grade 1) Up To SAR 82,225 (Grade 11), Not Including One-time Fees.

● Al Hussan International Schools (Riyadh, IB):  Approximately SAR 18,000 (Pre-K) To SAR 34,000 (Grade 11–12) Annually.

● International Programs School (IPS):
◦KG1: SAR 33,990 Tuition (+ SAR 600 VAT)
◦Grades 9–12: SAR 57,680 Tuition (+ ~SAR 8,650 VAT) Per Year.

Source:  TheGoGoGreens | Holborn | AISJ | International Schools Database | GoToUniversity | Ipsksa

Salary Trends In Saudi Arabia (2018–2023)

Using The General Authority For Statistics (via CEIC and Expatica), Here’s The Progression Of Average Monthly Wages For Saudis And Non-Saudis:

Saudis (Average Monthly Wage):

● 2018 (approx.): SAR 8,063 (lowest Point) 
● 2021 (peak): SAR 11,176 
● Dec 2023: ~SAR 10,973 
● 2024: ~SAR 10,159
● Minimum Wage For Saudis Under Nitaqat Scheme: SAR 4,000/month, With Higher Thresholds In Professions Such As Pharmacy (SAR 7,000), Dentistry (SAR 9,000), And Engineering (SAR 5,000)

Non-Saudis (Average Monthly Wage):

● 2018 (approx.): SAR 3,299/month (lowest Point) 
● 2024 (approx):SAR 4,376/month 
● Many Lower-paid Expats Work In Labor-intensive Roles (e.g., Construction, Cleaning) And Often Receive Packages With Housing And Travel Allowances—but Base Salaries Remain Modest.
● Higher-skilled Expats May Receive Richer Compensation Packages—but Salary Disparities Persist Across Roles And Sectors.

Conclusion

The Rising Cost Of Living In Saudi Arabia—from Housing And Schooling To Everyday Groceries—continues To Outpace Stagnant Expat Salary Growth, Creating A Widening Financial Squeeze For Foreign Workers. While Saudi Nationals Earn More Than Double The Average Expatriate Salary, Thanks To Higher Baselines And Government-backed Benefits, Most Expats Are Left Grappling With Mounting Expenses And Little To No Salary Increments. Unless Wages Are Adjusted In Line With Inflation, The Gap Between Earnings And Real Living Costs Will Only Grow Sharper, Challenging The Long-term Sustainability Of Expatriate Life In The Kingdom. For Families Planning A Move Or Already Living In Riyadh, Jeddah, Or Dammam, Understanding The Latest Saudi Arabia Salary Trends Vs. Cost Of Living In 2025 Is Essential To Making Informed Financial And Career Decisions.