Saudi Arabia HR Tech Market

Market Overview:

Saudi Arabia HR tech market size reached USD 332.3 Million in 2024. The market is projected to reach USD 710.1 Million by 2033, exhibiting a growth rate (CAGR) of 8.17% during 2025-2033. The widespread adoption of innovative tools that automate routine tasks, allowing them to concentrate on strategic initiatives crucial for organizational growth and the success of employees, is primarily driving the market growth.

HR tech involves the utilization of technology to streamline and optimize diverse facets of human resource management within organizations. This entails employing a broad spectrum of software, tools, and platforms with the goal of automating and improving HR processes, fostering efficiency, data-driven practices, and user-friendly experiences. Encompassing various functionalities such as recruitment, applicant tracking, employee onboarding, performance management, learning and development, payroll administration, benefits management, and workforce analytics, HR tech aims to enhance operational efficiency, minimize errors, ensure regulatory compliance, boost employee satisfaction, and align HR functions strategically with overall business objectives. This technology also alleviates administrative burdens, facilitates data-driven decision-making, elevates employee engagement, and provides a more personalized employee experience. Through automation of processes like screening and interview scheduling, HR tech furnishes insights into employee performance trends, enabling organizations to make informed decisions regarding talent management.

Key Trends of Saudi Arabia HR Tech Market:

Growing youth population

Rising youth is fueling the market growth in Saudi Arabia. Approximately 71% of Saudi Arabia's population was under 35, according to the 2024 Saudi Family Statistics Report. Young Saudis are tech-savvy and anticipate easy-to-use, mobile-based applications for scheduling work, applying for jobs, and obtaining HR services. They favor self-service platforms, digital communication, and open performance monitoring. This is leading to the utilization of mobile apps and cloud-based HR tools, drawing in young people. Organizations want scalable solutions for onboarding, training, and career development as more young people continue to enter the workforce, particularly in the tech and private sectors. HR platforms are evolving to become more personalized, analytics-based, and interactive as a result of the changes in employee expectations.

Increasing utilization of artificial intelligence (AI)

Rising use of AI is improving the efficiency and accuracy of human resource processes. As per the IMARC Group, the Saudi Arabia AI market size was valued at USD 1,073 Million in 2024. To save time, businesses are using AI to analyze job applications, match people to openings, and automate interview scheduling. AI also aids in the analysis of employee data to forecast risks related to engagement, performance, and turnover. This allows HR teams to make better decisions and plan workforce strategies more effectively. Common employee questions are answered by AI-based chatbots, which enhance communication and lighten the efforts of the HR department. AI suggests customized learning pathways for training and development based on the roles and objectives of employees. AI is a major factor influencing the market in Saudi Arabia as a result of the increased demand for AI technologies and heightened emphasis on digital transformation.

Rising adoption of hybrid and remote work arrangements

Increasing adoption of hybrid and remote work arrangements is impelling the market growth. According to industry reports, by February 2025, 51% of workers in Saudi Arabia were working remotely at least half of the time. Companies are adopting cloud-based HR platforms to manage attendance, performance, and communication for employees working from different locations. These systems help HR teams track productivity, handle remote onboarding, and ensure compliance with labor regulations. With teams spreading across various regions, businesses continue to rely on virtual collaboration tools, digital document management, and online feedback systems. HR tech also enables employees to access payslips, request leave, and update personal details through mobile apps. As remote and hybrid work are becoming more common, especially in tech and service sectors, organizations are investing in secure, scalable, and user-friendly HR solutions to stay efficient and connected in a distributed work model.

Growth Drivers of Saudi Arabia HR Tech Market:

Supportive government initiatives under Vision 2030

Supportive government initiatives under Vision 2030 are positively influencing the market. Vision 2030 is encouraging both public and private organizations to modernize their operations, including human resources. This is enabling companies to adopt advanced HR systems that support automation, data analysis, and compliance with evolving labor laws. The government is also supporting programs to increase employment of Saudi nationals, catalyzing the demand for tools that track Saudization targets and manage local talent. Public investments in digital infrastructure and e-government services are making it easier for businesses to implement cloud-based HR platforms. Training and upskilling programs under Vision 2030 also require integrated HR tech solutions to monitor employee development. Consequently, Vision 2023 acts as a strong catalyst for expanding and upgrading HR tech in the country.

Growing data security concerns

Rising data security concerns are offering a favorable market outlook. As organizations are collecting and storing sensitive data like salaries, personal details, and health records, they need solutions to protect this information from breaches and misuse. New data protection laws in the country require businesses to follow strict guidelines, which is encouraging the use of advanced HR platforms with strong security features. Companies are looking for solutions that offer encryption, access controls, and secure cloud storage to reduce risks. HR tech providers are responding by offering tools that ensure data privacy and meet local compliance standards. As awareness about cybersecurity is growing, businesses are prioritizing secure HR systems, making data protection a key factor in the employment of modern HR technologies.

Rising integration with business tools

Increasing assimilation with business tools is allowing companies to connect HR systems with other essential platforms like accounting, payroll, and project management software. This connection helps businesses streamline operations, reduce manual work, and improve accuracy across departments. When HR platforms integrate smoothly with finance and operations tools, companies can manage employee data, expenses, and performance more efficiently. It also supports better decision-making through shared analytics and real-time insights. Linking HR with attendance and payroll systems ensures timely salary processing and compliance. As Saudi businesses are growing and digitalizing, they prefer all-in-one or integrated solutions that save time and minimize errors. This demand for seamless workflows and centralized data is enabling HR tech providers to offer more compatible and flexible HR platforms.

Saudi Arabia HR Tech Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for ​2025-2033​. Our report has categorized the market based on application, type, end use industry, and company size.

Application Insights:

• Talent Management
• Payroll Management
• Performance Management
• Workforce Management
• Recruitment
• Others

The report has provided a detailed breakup and analysis of the market based on the application. This includes talent management, payroll management, performance management, workforce management, recruitment, and others.

Type Insights:

• Inhouse
• Outsourced

A detailed breakup and analysis of the market based on the type have also been provided in the report. This includes inhouse and outsourced.

End Use Industry Insights:

• TTH (Travel, Transportation, Hospitality)
• Public Sector
• Health Care
• Information Technology
• BFSI (Banking, Financial services, and Insurance)
• Others

The report has provided a detailed breakup and analysis of the market based on the end use industry. This includes TTH (travel, transportation, hospitality), public sector, health care, information technology, BFSI (banking, financial services, and insurance), and others.

Company Size Insights:

• Less Than 1k Employees
• 1k -5k Employees
• Greater Than 5k Employees

A detailed breakup and analysis of the market based on the company size have also been provided in the report. This includes less than 1k employees, 1k -5k employees, and greater than 5k employees.

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Saudi Arabia HR Tech Market News:

• June 2025: iSchool, a top K-12 AI platform in the MENA area, revealed the purchase of SEEDS, the educational technology branch of the Egyptian-Saudi software company Algoriza. This action signified a crucial advancement in iSchool’s strategy for regional growth, especially in Saudi Arabia’s fast-changing educational environment. It further strengthened iSchool’s developing approach of providing AI and coding instruction to the children of employees as a component of corporate HR programs. The platform was intended to establish a new type of education, where essential tech skills for the future served as a key advantage for families and a sustainable talent approach for employers.
• April 2025: Alareeb Holding of Saudi Arabia purchased an 80% share in Vision Talent, the prominent HR firm providing technology solutions. This collaboration sought to deliver innovative HR solutions that could improve the ability of businesses to attain sustainable operational efficiency.
• January 2025: Khalid Al Mengash was appointed as the Chief Human Resources Officer (CHRO) at Nesma Infrastructure & Technology (NIT), Saudi Arabia. He would lead HR initiatives to enhance the company's goal of providing innovative solutions in electrical, communication, IT, and energy services.
• January 2025: The 9th Annual HR Tech Saudi Summit was set to be held in Riyadh, KSA on November 3rd-4th, 2025. The 2024 summit's remarkable achievement stemmed from its extensive exploration of critical subjects, effectively merging advanced technology with human-focused strategies.
• October 2024: The Ministry of Communications and Information Technology in Saudi Arabia initiated the Tech Talent Hub program in partnership with recruitment and HR firms to provide its services and advantages to national digital talent and technology startups. The project sought to assist the technology industry and enhance the expansion of the digital economy.
• September 2024: Lumofy, a top provider of AI-based skills development solutions, revealed a strategic alliance with Jisr, an all-inclusive HR tech firm based in Saudi Arabia. This collaboration was the first of its sort within Jisr, providing Jisr's partners with the benefit of accessing sophisticated training solutions that could assist in equipping their employees to stay updated with the fast-changing digital and technological environment in the employment market. These cutting-edge tools would enable organizations to boost their competitiveness both locally and globally and cultivate a workforce skilled in innovations and adaptability to continuous changes.

Saudi Arabia HR Tech Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia HR tech market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia HR tech market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia HR tech industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.