Saudi Arabia HR Tech Market Size To Surpass USD 710.1 Million By 2033, Rising At A CAGR Of 8.17%

(MENAFN- IMARC Group) 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. Rising digital transformation initiatives and the growing need for efficient talent management are driving the Saudi Arabia HR Tech market.

Key Highlights

• Market size (2024): USD 332.3 Million
• Forecast (2033): USD 710.1 Million
• CAGR (2025–2033): 8.17%
• AI-powered recruitment, cloud-based HR platforms, and mobile-first systems streamline processes, boosting efficiency and employee engagement.
• Vision 2030, digital transformation, and demand for automation fuel HR tech adoption across diverse sectors.
• Talent management holds the largest share at 56.02%, driven by AI and cloud-based solutions.

How Is AI Transforming the HR Tech Market in Saudi Arabia?

• Streamlining Recruitment : AI-powered tools like applicant tracking systems help Saudi firms sift through resumes, with 78% of leaders prioritizing HR tech investments.
• Boosting Efficiency : AI automates payroll and leave management, cutting costs, with the HR tech market valued at $1.23 billion recently.
• Upskilling Workforce : Government's Elevate program trains 25,000 women in AI, addressing skill gaps as 90% of employers face talent shortages.
• Enhancing Employee Experience : Companies like STC use AI for personalized training, with 65% of firms planning increased HR tech spending soon.
• Driving Innovation : SDAIA's National Data Bank connects 200+ government systems, enabling AI-driven HR analytics for smarter decision-making.

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Saudi Arabia HR Tech Market Trends and Drivers

• Vision 2030 : Drives digital transformation, economic diversification, and adoption of cloud-based HR solutions.
• AI-Powered Tools : Enhance recruitment, reduce time-to-hire by 40%, and boost productivity by 20%.
• Talent Management : Dominates with 56.02% market share, leveraging SaaS for efficient workforce solutions.
• Employee Engagement : 67% of companies use cloud platforms for real-time feedback, improving satisfaction.
• Outsourced HR Tech : Generates 75.9% revenue, ensures compliance with Saudization and labor laws.

Saudi Arabia HR Tech Industry Segmentation:

The report has segmented the market into the following categories:

Application Insights:

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

Type Insights:

• Inhouse
• Outsourced

End Use Industry Insights:

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

Company Size Insights:

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

Regional Insights:

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

Recent News and Developments in Saudi Arabia HR Tech Market

• July 2025 : The Human Capability Initiative in Riyadh launched, signing agreements to empower youth through a $50 million investment in the Messengers of Peace program, focusing on AI-driven training and certifications to boost global competitiveness.
• February 2025 : AI-powered HR systems gain traction, with platforms like peopleHum reducing administrative workloads by up to 40% through mobile-first self-service tools for payroll, leave requests, and employee data management.
• November 2024 : The HR Tech Saudi Summit highlighted cloud-based HR solutions and AI-powered talent acquisition, with over 1,600 tech startups driving innovation in workforce automation and employee engagement.

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Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

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