Labor Costs & Productivity in Saudi Arabia
What does manufacturing labor really cost in Saudi Arabia? The answer comes down to two things this dataset reports monthly: the fully loaded cost of a worker — total wages and all non-wage costs combined into a single figure — and the Labor Productivity Factor, which captures how productively that laborer works. Industry Economics & Competitiveness gives you both for the Saudi Arabia's manufacturing and construction sectors.
Saudi Arabia's labor costs across chemical and manufacturing sectors from 2016 to 2021 reveal distinct wage structures by skill level and trade. Chemical plant supervisors commanded the highest hourly rates, reaching $9.82 in 2021, while manufacturing labor remained the lowest category at $4.79 per hour in the same year. Between 2020 and 2021, chemical plant operators declined from $8.51 to $8.20 per hour, supervisory roles fell from $10.19 to $9.82, and manufacturing labor decreased from $4.97 to $4.79, reflecting a contraction across skilled and semi-skilled positions. Construction labor, by contrast, increased slightly from $7.38 in 2020 to $7.11 in 2021, maintaining a mid-range position relative to other categories.
The figures shown are illustrative and represent a historical sample. For up-to-date monthly labor cost and productivity benchmarks in Saudi Arabia — along with industrial costs and manufacturing competitiveness data across 33 countries — subscribe to Intratec Industry Economics & Competitiveness.
About the Labor Benchmarks. Each monthly release reports three categories of labor data for Saudi Arabia: total employer cost (wages plus non-wage costs) for manufacturing and construction sectors, output per worker for the same sectors, and role-specific wages for chemical plant operators and supervisors at typical plant staffing levels. The same methodology produces comparable benchmarks for every country in the program, with a 10-year monthly history alongside the current values.
Beyond Labor Costs
Labor cost and productivity factors are part of the Industry Economics & Competitiveness subscription — a monthly program benchmarking commodities manufacturing competitiveness across 33 countries, including Saudi Arabia.
33 Key Countries
Country-by-country monthly reports covering major industrial hubs — USA, China, Germany, Japan, Brazil, India, and more.
7 Industries Covered
Industry-specific rankings across olefins, aromatics, alcohols & organic acids, polymers, fertilizers, inorganic chemicals, and metals.
Reference Datasets
Country-level cost inputs for plant projects — labor costs, utility prices, construction indexes, and location factors.
Monthly Updates
Fresh data every month, always reflecting the most recent period available, with short-term forecasts on selected series.
Frequently Asked Questions
About Saudi Arabia's Manufacturing Industry
Saudi Arabia's economy is heavily anchored in its vast oil reserves, making it one of the largest producers and exporters of oil globally. However, the country is actively diversifying its economy through its Vision 2030 initiative, aiming to reduce dependence on oil by expanding into other sectors such as manufacturing, technology, and renewable energy.
The manufacturing sector in Saudi Arabia is growing, with significant investments in industries like petrochemicals, construction materials, and food processing. The government is also focusing on developing high-tech industries and increasing local production capabilities, which are crucial for the country's economic diversification.
As Saudi Arabia continues to implement its Vision 2030 goals, the manufacturing industry is expected to play a pivotal role in driving economic growth and creating jobs, positioning the country as a key industrial player in the Middle East and beyond.