KSA SALARY GUIDE 2020 - Cooper Fitch

KSA SALARY GUIDE 2020ADVISORYThe kingdom’s advisory market is set to continueexpanding in 2020, with fresh business activityacross all service lines including audit, riskconsultancy, deal advisory and transaction services.We anticipate a further increase in consulting workin the year ahead, especially in disputes andinvestigations, public sector, infrastructure andfinance advisory with a prediction that market-ratesalary ranges will increase by 3% in 2020.The biggest growth driver is the Vision 2030roadmap, which has significantly impacted theSaudi employment market in 2019. An increase inmerger & acquisition (M&A) activities, thedevelopment of super-scale, or ‘giga’, projects andthe privatisation of some government companieshave increased demand for advisory professionalsand is expected to continue doing so in 2020.Although we do not expect any significant increasein salary ranges for 2020.In recent months, there has been a marked pushamong firms to build advisory teams in Saudi Arabia,as opposed to flying specialists in and out on aproject-by-project basis, and this is likely to gathermomentum in 2020. Organisations are increasinglyinvesting in operations on the ground, with apositive impact on recruitment and relocationactivity. Meanwhile, the growth of non-oil industriesmeans higher demand for new skill sets and strongconsultancy support for emerging industries.Geographically, Riyadh is still the largest market.However, Jeddah has continued to grow its advisorybase with an increase in large family holding groupsundergoing structural transformations and is,therefore, becoming a busier spot for consultingservices. Firms are mainly recruiting from within theSaudi market, with the rest of the GCC, Lebanon andJordan as the principal secondary markets. In somelimited instances, firms are seeking uniqueinternational talent from major global markets suchas Europe, for advice on public-private partnership(PPP) schemes. Last year there was a skills gaprelating to debt restructuring consultancy, but thisshould close in 2020, our experts say.Advisory professionals in Saudi Arabia areincreasingly seeking career growth and exposure tobroader and more exciting clients as the marketmatures, and they crave higher levels ofresponsibility and engagement with clients. Firmsshould think about offering a clear career path withformal learning and development programmes toretain new recruits and existing employees.A flexible working environment, diverse client baseand the opportunity to work with new technologiesare other important factors in securing and retainingtalent in this sector.In terms of candidates, the most significant demandin the coming months will be for Saudi nationaltalent due to the government’s Saudisation agenda,especially those with specialist expertise, resultingin fierce competition among firms and public sectorbodies. Such competition is keeping fixed salaries inthe advisory sector steady, although clients expectan increase in the frequency of sign-on bonuses in2020.Page 7 of 33 Cooper Fitch 2019

KSA SALARY GUIDE 2020ADVISORYROLESTITLEMINAUDITPartner (5 yrs)Partner (1-4 yrs)85,00050,000120,00080,000DirectorSenior Manager40,00032,00047,00037,000ManagerAssistant Manager22,00018,00030,00022,000Senior AssociateAssociate13,0008,00017,00012,000Partner (5 yrs)Partner (1-4 yrs)95,00065,000150,00090,000DirectorSenior Manager50,00037,00060,00045,000ManagerAssistant Manager28,00023,00035,00027,000Senior AssociateAssociate16,00012,00022,00015,000RISK CONSULTINGMAXDEAL ADVISORY &Partner (5 yrs)100,000165,000TRANSACTIONSERVICESPartner (1-4 yrs)Director70,00052,00095,00065,000Senior ManagerManager38,00029,00046,50036,000Assistant ManagerSenior ,000The salary ranges provided are in SAR and represent monthly salary inclusive of basic salary and all fixedallowances. Monthly salary is exclusive of bonus, guaranteed or otherwise.Page 8 of 33 Cooper Fitch 2019

KSA SALARY GUIDE 2020BANKINGSalaries in Saudi Arabia’s banking and financialservices sector are predicted to rise by 3% onaverage in 2020 compared to the previous year,reflecting increased hiring activity in this sector.Broader industry conditions are stable, with Saudibanks’ profit margins expected to remain stable at2.2 per cent in the next 12-18 months.Against this backdrop, government spending inSaudi Arabia has risen in the last 12-24 months,within a positive knock-on impact on job creation inthe sector. For the purpose of this report, bankingand financial services roles fall within offshore andonshore zones regulated by the two majorregulators in Saudi Arabia, Saudi Arabian MonetaryAuthority (SAMA) and the Capital Markets Authority(CMA). Roles spanning front office functionsincluding on and offshore private banking andwealth management, investment and assetmanagement, retail and corporate banking, andback-office functions such as compliance, risk,finance, HR, legal, administration, marketing andcommunications.Recruitment in 2019 centred around front-officeroles as banks work to expand their client bases andmeet ambitious performance targets. However,there is likely to be increased hiring for support rolesin 2020 due to stricter credit restrictions introducedby the SAMA regulator. Meanwhile, rapid growth indigital banking is rising demand for technologyrelated expertise. Banks are expected to acceleratedigitalisation agendas over the next 18-24 months.This will mean a shift away from hiring for branchfocussed operations, towards creating in-housetechnology roles.to secure their services. Banks also face competitionfrom public sector entities as they implement largescale infrastructure and other projects in line withVision 2030.In response, recruitment strategies tend to reflectthe needs of government projects, and this isexpected to continue. The most in-demand roles in2020 include relationship manager roles acrossprivate and institutional banking, credit risk andmarket analytics roles, and digital banking officers.In general, there remains a high demand forqualified finance professionals in the kingdom, aswell as industry-specific marketing, PR and brandingexperts. Further expertise is sought in globalaccounting standards, Basel III requirements, AntiMoney Laundering and Know Your Customer rules,as global regulatory requirements continue totighten.Recruitment activity in 2020 will centre aroundRiyadh and Jeddah, although there has been arecent surge of activity in the Eastern Province,where many banks in the consumer space have largecustomer portfolios and greater need for bankingproducts and services.Another feature of the Saudi banking industry israpid staff turnover as employees chase competitivepackages. The average tenure for banking staff isjust 2-3 years, our experts say. Banks must focus oncreating leadership programmes to attract andretain employees over the long term.However, organisations in Saudi have facedchallenges hiring for niche roles in digital bankingdue to skills shortages. Saudisation is anotherchallenge. Under CMA regulations, specific vitalfunctions - such as Head of Compliance - have beenearmarked for Saudi nationals only, sparking a racePage 9 of 33 Cooper Fitch 2019

KSA SALARY GUIDE 2020RETAIL BANKINGROLESTITLEPRIVATEWEALTHMANGEMENTMINMAXHead of Private Banking (16 yrs)160,000170,000Market Head / Managing Director (15 yrs)135,000140,000Executive Director / Unit Head (10-12 yrs)90,000100,000Associate Director (5-8 yrs)70,00080,000Relationship Manager - Key Clients (5-7 yrs)45,00055,000Assistant Relationship Manager - Support (5-7 yrs)30,00040,000Head of Wealth Management85,00095,000Head of International Wealth75,00085,000Unit / Department Head65,00070,000Team Leader - Various Domiciles60,00065,000Senior Wealth Management Specialist50,00055,000Associate - New Clients35,00040,000MINMAX100,000110,000Team Leader - Corporate Banking80,00090,000Senior Director - Corporate Clients65,00075,000Associate Director - Relationship Manager - Industry Specific55,00065,000Director - Relationship Manager - Local Corporates / MNCs50,00060,000Relationship Manager (Credit Analysis)40,00045,000Head of Financial Institutions120,000135,000Head of Non FI ClientsWHOLESALE BANKINGROLESTITLECORPORATEHead of Corporate BankingINSTITUTIONAL100,000110,000Chief Compliance Officer (CCO)85,000110,000Director / Vice President85,00095,000Senior Relationship Manager / Assistant Vice President75,00080,000Relationship Manager50,00060,000The salary ranges provided are in SAR and represent monthly salary inclusive of basic salary and all fixedallowances. Monthly salary is exclusive of bonus, guaranteed or otherwise.Page 10 of 33 Cooper Fitch 2019

KSA SALARY GUIDE 2020BANKINGROLESTITLEMINMAXCOMPLIANCE &Head of Compliance68,00077,000REGULATIONCompliance Licenced MLRO (APs)44,00058,000Head of Fraud44,00052,000Assistant Relationship Manager40,00050,000Inspection, Authorization Officers35,00045,000Fraud Manager34,00039,000Sanctions and AML Managers32,00035,000Compliance Manager- Generalists- Wholesale, Retail, Corporate27,00035,000Compliance Officer-Private Banking, Wealth, Invest. products17,00023,000Compliance Officer (KYC, On boarding, CDD)14,00017,000Compliance Analysts (Graduate)11,00015,000Chief Risk Officer70,00091,000Head of Credit Risk51,00069,000Credit Risk Policies Head48,00057,000Operational Risk Head48,00057,000Head of Collections and Recovery49,00055,000Market Risk Head47,00054,000Head of Risk Analytics45,00052,000Credit Risk Policies VP45,00049,000Operational Risk Manager33,00042,000Credit Risk Manager29,00039,000Risk Analytics Manager28,00038,000Market Risk Manager32,00037,000Enterprise Risk Manager25,00031,000Market Risk Analyst18,00023,000Risk Analytics Officer15,00022,000RISKCredit Risk Portfolio Analyst16,00019,000Operational Risk Analyst17,00019,000Credit Risk Analyst14,00018,000The salary ranges provided are in SAR and represent monthly salary inclusive of basic salary and all fixedallowances. Monthly salary is exclusive of bonus, guaranteed or otherwise.Page 11 of 33 Cooper Fitch 2019

KSA SALARY GUIDE 2020BANKINGROLESTITLEMINFINANCE &Chief Operating Officer (COO)88,000105,000OPERATIONSChief Finance Officer (CFO)81,000103,000Finance Director61,00073,000Head of Internal Audit49,00059,000Head of Fund Admin / Head of Accounting49,00057,000Head of MIS (Management Information Systems) & Reporting43,00052,000Head of Custody41,00049,000Financial Controller33,00044,000Internal Audit Manager35,00042,000Financial Reporting and Regulation31,00039,000Finance Manager31,00039,000Treasury Manager33,00038,000Operation Manager27,00033,000Fund Accountant Qualified25,00032,000Financial Accountant21,00026,000The salary ranges provided are in SAR and represent monthly salary inclusive of basic salary and all fixedallowances. Monthly salary is exclusive of bonus, guaranteed or otherwise.MAXPage 12 of 33 Cooper Fitch 2019

KSA SALARY GUIDE 2020HUMAN RESOURCESThe human resources (HR) industry in Saudi Arabiais maturing as organisations review their prioritiesand grow their horizons in line with the Vision 2030agenda. State-led initiatives to develop the privatesector are bearing fruit, with substantial growth inbusiness creation over the past year and a positiveimpact on recruitment activity.Across the GCC, there is a shortage of candidateswith recognised HR industry qualifications such asCIPD, PHR and SHRM. However, this is likely toimprove in future as more HR professionals seek toenhance their knowledge through postgraduatecourses or training programs.The majority of HR salaries remained stable in 2019and are expected to continue so in 2020. Howeverwe do not expect a change in the market salaryrange. The roles that have seen the most significantdeclines are within organisations tightening theirbudgets, while specialist roles such as learning anddevelopment (L&D) and compensation and benefits(C&B) enjoyed the most significant increases.Some challenges that impacted the Saudi HRindustry in 2019 will continue this year, including thedrive for Saudisation of the workforce, withgovernment-set targets leading to skills shortagesfor specialist roles. Attracting expatriate talent toSaudi Arabia is another challenge, as someprofessionals prefer the more internationalenvironment of the UAE or other geographicallocations in the GCC or Asia when consideringrelocation.In general, there will be significant demand for HRprofessionals across the kingdom, particularly inRiyadh, Jeddah, Yanbu, Dammam and Khobar dueto their high levels of foreign and local investment.On the flipside, flatter economic growth in the GCChas prompted some firms to restructure and retractfrom the region. Some multinationals havecentralised their Middle East HR operations outsidethe kingdom, resulting in fewer roles available insome sectors. However, start-ups and homegrowncompanies are attaching increased importance toHR as they search for staff to help them grow.Internally, firms are seeking to increaseopportunities for Saudi nationals and invest in theirdevelopment as future leaders across differentfunctions in line with Vision 2030 objectives. Saudinational talent is in particularly high demand, andretaining skilled national employees has provenchallenging unless businesses are in a position tooffer long-term incentive and growth programmes.Firms would do well to ensure they have a clearcareer progression plan in place for new recruits.The most in-demand roles will be generalists(depending on the size of the HR function, as thisattribute is particularly useful for smaller firms); C&Bprofessionals with local experience to ensurepolicies are in line with labour laws; L&Dprofessionals to retain staff and help them performbetter, and organisational development, especiallyfor start-ups. Businesses consider situational andadaptive leadership styles necessary whenappointing senior positions.Page 13 of 33 Cooper Fitch 2019

KSA SALARY GUIDE 2020HUMAN RESOURCESROLESMINMAXCHROHR VP100,00080,000155,000125,000HR Director (Group)HR Manager50,00030,00080,00040,000Human Resources Business PartnerLearning & Development Manager30,00024,00045,00033,000Compensation & Benefits ManagerHR Operations Manager22,00022,00028,00030,000Talent & Acquisition ManagerEmployee Relations Manager22,00019,00027,00024,000Recruitment ManagerTraining Manager18,00018,00025,00027,000Learning & Development SpecialistHR Generalist15,00015,00018,00025,000Recruitment SpecialistTalent & Acquisition 6,000The salary ranges provided are in SAR and represent monthly salary inclusive of basic salary and all fixedallowances. Monthly salary is exclusive of bonus, guaranteed or otherwise.Page 14 of 33 Cooper Fitch 2019

KSA SALARY GUIDE 2020INVESTMENT MANAGEMENTLike many sectors in Saudi Arabia, Vision 2030 hasdramatically impacted investment management(IM), as public and private sector firms and sovereignwealth funds review their operations in line with thenational growth agenda and invest accordingly.IM roles in the kingdom have seen an increase inmarket-rate salary ranges by average salaryincreases of 5% over the past year, and 2020 isexpected to bring a continued high level ofrecruitment activity, assuming 5% rise in marketrate salary ranges, given that a considerable numberof the main government projects are still in theinitial stages. While state investment vehicles areaccounting for a large proportion of IM recruits atpresent, private sector hiring should gathermomentum as projects require new funding atdifferent stages of their life cycle.Certain challenges firms faced in 2019 are likely tocontinue in the next year, including an outflow oftalent to the public sector, which typically offersenticing remuneration packages and exposure tolarge-scale projects. Certain asset classes, such asreal estate and infrastructure, are experiencingparticularly intense competition for local talent, andit is becoming increasingly challenging to retainSaudi national and expatriate talent, especially inthe private sector, because of the attractive publicsector packages on offer.There is demand at present for IM professionalsworking in private equity, M&A, real estatedevelopment and investment, as well as boardmembers and staff in finance and investmentoperations. Demand will continue as investmentsgrow, as there is significant demand for bestpractices in board rooms, and Saudi-basedcompanies are increasingly looking outside thekingdom to bring international perspectives to thetable. Real estate, meanwhile, is an extremely activeasset class in the kingdom and likely to remainstable in the coming years. To attract and retaintalent, recruitment strategies need to be alignedwith the company’s growth objectives to ensurestrong commitment and employee retention.Companies should openly communicate theirvision, mission and goals to external stakeholders togenerate a positive image of the company as this isbecoming increasingly important.The recruitment industry notes a shortage of Saudinationals in the market with the preferred IMindustry-accredited qualification from the CFAInstitute. This, together with a rise in investmentactivity across Saudi Arabia, has increased the needto recruit candidates from overseas, especially fromfinancial capitals such as New York or London.Companies must ensure their salary packages arecompetitive globally while taking into account therequirement to meet Saudisation standards.Given all the transformation, the Vision 2030 hasbrought, investment banking in Saudi Arabia hasbeen relatively active in 2019. The country is theleader among the GCC countries in equity capitalmarkets with the real estate being

Page 2 of 33 Cooper Fitch 2019 CEO LETTER Welcome to the 2020 edition of the Cooper Fitch Salary Guide for Saudi Arabia. Foreign direct investment inflows increased by 24%