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Around 45,000 Americans currently live in Saudi Arabia as of June 2025, making it one of the largest American expatriate communities in the Middle East.
This significant population has been drawn primarily by the Kingdom's economic transformation under Vision 2030, which has created unprecedented opportunities in technology, healthcare, education, and energy sectors. Americans living in Saudi Arabia typically enjoy tax-free salaries, lower living costs compared to the United States, and access to modern amenities within expatriate compounds, though they must navigate conservative social norms and strict legal restrictions that differ significantly from American culture.
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Americans in Saudi Arabia benefit from tax-free income and lower living costs but must adapt to conservative Islamic culture and strict laws.
Property ownership is possible for Americans with proper permits, though restrictions apply in religious areas like Mecca and Medina.
| Aspect | Saudi Arabia | United States |
|---|---|---|
| American Population | ~45,000 expats | Native population |
| Monthly Living Cost (Single) | $1,254 | $2,498 |
| One-bedroom Rent | $640/month | $1,595/month |
| Income Tax | 0% for expats | 10-37% federal |
| English Usage | Widely spoken in business | Primary language |
| Property Ownership | Allowed with permits | Unrestricted for citizens |
| Social Restrictions | Conservative Islamic norms | Liberal, diverse |
How many Americans currently live in Saudi Arabia?
Approximately 45,000 Americans reside in Saudi Arabia as of June 2025, representing one of the largest American expatriate communities in the Middle East.
This figure reflects both long-term residents who have established themselves in the Kingdom and professionals working on temporary assignments typically ranging from 2-5 years. The American expat population has grown by roughly 15% since 2020, driven primarily by Saudi Arabia's Vision 2030 economic diversification program.
The majority of these Americans are concentrated in major urban centers, with approximately 18,000 living in Riyadh, 12,000 in Jeddah, and 8,000 in the Eastern Province cities of Dammam and Khobar. The remaining population is distributed across other cities including Medina, Taif, and various industrial zones throughout the Kingdom.
Most Americans in Saudi Arabia work in professional roles within multinational corporations, government contractors, healthcare systems, and educational institutions. The demographic breakdown shows that about 60% are working professionals aged 25-45, while 25% are accompanying family members and 15% are retirees or individuals on long-term assignments.
This population represents a significant economic contribution to both countries, with American expats in Saudi Arabia sending an estimated $2.8 billion in remittances globally and contributing substantially to the local economy through their consumption and tax-free spending power.
Why do Americans move to Saudi Arabia in the first place?
Americans relocate to Saudi Arabia primarily for career advancement opportunities and significant financial benefits that are difficult to match in the United States.
The Kingdom's Vision 2030 economic transformation has created unprecedented demand for American expertise in technology, healthcare, education, finance, and renewable energy sectors. Many professionals can earn 40-60% more than comparable positions in the US while paying zero income tax on their Saudi-sourced income.
Housing allowances, healthcare coverage, and education stipends for children often add another $30,000-60,000 annually to compensation packages. Companies typically provide furnished accommodation, annual home leave flights, and comprehensive medical insurance that covers the entire family.
Beyond financial incentives, many Americans are attracted by the opportunity to experience a rapidly modernizing society while maintaining a high standard of living. Saudi Arabia's safety record, with extremely low crime rates and political stability, appeals particularly to families with children.
The country's strategic location also offers easy access to Europe, Asia, and Africa for travel, while the growing expat community provides social support networks that ease the cultural transition for newcomers.
What types of jobs or opportunities attract Americans there?
American professionals in Saudi Arabia primarily work in high-skilled sectors that drive the Kingdom's economic diversification away from oil dependency.
| Sector | Typical Roles | Average Salary Range (USD) |
|---|---|---|
| Healthcare | Doctors, nurses, medical technicians | $80,000-200,000 |
| Education | University professors, international school teachers | $60,000-120,000 |
| Technology | Software engineers, cybersecurity specialists, AI experts | $90,000-180,000 |
| Engineering | Construction, petroleum, renewable energy engineers | $85,000-160,000 |
| Finance | Investment managers, banking executives, consultants | $100,000-250,000 |
| Energy | Oil & gas specialists, solar energy project managers | $95,000-220,000 |
| Business Management | Operations managers, executive leadership | $110,000-300,000 |
Is English commonly spoken in daily life and the workplace?
English is widely spoken in business environments and major cities, making daily life manageable for Americans without Arabic proficiency.
In corporate settings, multinational companies, government agencies, and international organizations, English serves as the primary working language. Approximately 75% of Saudi professionals in major cities have functional English skills, with higher proficiency rates among younger generations and university-educated individuals.
Daily transactions in shopping malls, restaurants, hospitals, and banks can typically be conducted in English, particularly in expatriate-heavy areas of Riyadh, Jeddah, and the Eastern Province. Most service staff in hotels, airports, and tourist areas speak conversational English.
However, English proficiency decreases significantly outside major urban centers and in traditional sectors. Government offices, local markets, and neighborhood services may require basic Arabic or translation assistance. Many Americans find that learning basic Arabic phrases enhances their experience and demonstrates cultural respect.
Educational institutions serving expatriate children operate primarily in English, while international schools follow American, British, or IB curricula entirely in English.
What is everyday life like for Americans living in Saudi Arabia?
Americans in Saudi Arabia typically live in modern expatriate compounds that provide Western-style amenities while respecting local cultural norms.
Most expat housing consists of villa-style homes or apartments within gated communities featuring swimming pools, fitness centers, tennis courts, restaurants, and community centers. These compounds offer a familiar lifestyle with barbecue areas, playgrounds, and social clubs where dress codes are more relaxed than in public areas.
Daily routines revolve around work schedules that typically run Sunday through Thursday, with Friday and Saturday forming the weekend. Working hours are generally 8 AM to 5 PM, with some companies offering flexible arrangements. Prayer times influence business schedules, with brief closures during the five daily prayer periods.
Shopping and dining options have expanded dramatically, with international brands, Western restaurants, and modern malls available in all major cities. Entertainment options include cinemas, sports facilities, cultural events, and an growing tourism sector featuring historical sites and natural attractions.
Transportation relies heavily on private vehicles, as public transportation is limited outside Riyadh's metro system. Most expatriate families own cars, and ride-sharing services like Uber and Careem operate extensively in urban areas.
How does the lifestyle in Saudi Arabia compare to life in the United States?
Saudi Arabia offers a significantly lower cost of living combined with higher disposable income, but requires adaptation to conservative social norms and Islamic cultural practices.
Housing costs are approximately 60% lower than comparable US markets, with a typical three-bedroom villa in an expat compound costing $1,500-2,500 monthly versus $3,000-5,000 for similar accommodations in major US cities. Utilities, groceries, and domestic help are substantially cheaper, allowing families to maintain higher living standards on the same budget.
The absence of income tax means American expats keep their entire salary, while many employers provide additional benefits like housing allowances, healthcare, and education stipends that can add $40,000-80,000 annually to total compensation.
Social life differs significantly from American norms, with restrictions on alcohol, mixed-gender gatherings in public, and conservative dress requirements outside expatriate compounds. However, within expat communities, social activities, sports clubs, and cultural events provide familiar recreational opportunities.
Healthcare quality equals or exceeds US standards at a fraction of the cost, with comprehensive insurance typically covering all medical needs. International schools offer American curriculum options, though tuition can be expensive without employer sponsorship.
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What are some things that are better in Saudi Arabia than in the U.S.?
Several aspects of life in Saudi Arabia provide clear advantages over the United States, particularly in financial and safety considerations.
1. **Tax-free income**: Americans in Saudi Arabia pay zero income tax on locally-sourced earnings, effectively increasing take-home pay by 20-35% compared to equivalent US positions.2. **Significantly lower living costs**: Housing, utilities, groceries, and services cost 40-60% less than major US metropolitan areas, allowing higher savings rates.3. **Exceptional safety and security**: Crime rates are extremely low, with violent crime virtually non-existent in expatriate areas, allowing unprecedented personal safety and freedom of movement.4. **Affordable, high-quality healthcare**: Medical services cost 70-80% less than US healthcare while maintaining international standards, with many procedures available without insurance restrictions.5. **Strong expatriate community support**: Well-established American and international communities provide extensive social networks, professional connections, and cultural familiarity.6. **Strategic travel location**: Saudi Arabia's central location offers affordable access to Europe (4-6 hour flights), Asia (3-8 hours), and Africa (2-6 hours) for vacation and business travel.7. **Modern infrastructure**: Recently built cities, airports, and facilities often exceed US standards in terms of technology and design.Don't lose money on your property in Saudi Arabia
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What are the biggest cultural differences or challenges Americans face there?
The most significant challenges for Americans involve adapting to Islamic cultural norms and legal restrictions that contrast sharply with American social freedoms.
Gender segregation remains prominent in many public spaces, government offices, and traditional businesses, though this has relaxed considerably since 2017. Women can now drive, attend sporting events, and participate more freely in public life, but conservative dress codes still apply outside expatriate compounds.
Communication styles differ substantially, with Saudi culture emphasizing indirect communication, relationship-building, and respect for hierarchy. Americans often need to adjust their direct communication approach to avoid appearing rude or confrontational in business and social settings.
Religious considerations permeate daily life, with businesses closing during prayer times, Islamic holidays affecting work schedules, and the holy month of Ramadan requiring sensitivity to fasting practices. Non-Muslim religious practices must be conducted privately.
Legal restrictions on alcohol, pork, and certain medications require lifestyle adjustments. Import restrictions on books, movies, and other media may limit access to familiar entertainment options, though digital streaming services have expanded available content significantly.
The concept of "wasta" (influence through connections) can frustrate Americans accustomed to merit-based systems, as personal relationships often determine business outcomes and bureaucratic processes.
How high or low is the cost of living for an American in Saudi Arabia?
The cost of living in Saudi Arabia is approximately 50% lower than the United States, creating substantial savings opportunities for American expatriates.
| Expense Category | Saudi Arabia (Monthly) | United States (Monthly) |
|---|---|---|
| Single Person Total | $1,254 | $2,498 |
| One-bedroom Apartment | $640 | $1,595 |
| Three-bedroom Villa | $1,800 | $3,500 |
| Utilities (Electric, Water, Internet) | $180 | $320 |
| Groceries (Family of 4) | $450 | $800 |
| Domestic Helper (Full-time) | $400 | $2,800 |
| Private Health Insurance | $150 | $450 |
Are Americans allowed to buy property there, and if so, how does it work?
Americans can legally purchase property in Saudi Arabia, but the process requires specific permits and compliance with foreign ownership regulations.
Foreign property ownership became legal in 2017 under specific conditions. Americans must obtain a residency permit (Iqama) and secure approval from the Saudi Arabian General Investment Authority (SAGIA), now known as the Ministry of Investment. The property purchase must align with the stated purpose of the residency permit.
Foreigners cannot buy property in religiously sensitive areas, particularly Mecca and Medina, or in certain border regions designated for security purposes. Additionally, agricultural land ownership remains restricted to Saudi nationals, though long-term leasing arrangements may be possible.
The property purchase process typically takes 60-90 days and requires legal representation by a licensed Saudi attorney. Buyers must provide proof of income, clean criminal background checks, and demonstrate the property's intended use aligns with their residency status.
Property taxes are minimal, typically 0.5-1% annually, and there are no restrictions on selling property to other foreigners or Saudi nationals. However, capital gains taxes may apply depending on the holding period and sale circumstances.
It's something we develop in our Saudi Arabia property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Saudi Arabia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What legal or social restrictions should Americans be aware of when living there?
Americans must navigate strict legal and social regulations that differ significantly from US laws, with serious consequences for violations.
Alcohol and drug possession carry severe penalties including imprisonment, hefty fines, and deportation. Even prescription medications containing controlled substances require prior approval and proper documentation from Saudi health authorities.
Public behavior must conform to Islamic standards, including modest dress codes (long sleeves and pants in public), no public displays of affection between unmarried couples, and respect for prayer times when businesses temporarily close.
Freedom of religion allows private worship but prohibits public practice of non-Islamic religions. Importing religious materials, holding religious gatherings, or proselytizing can result in legal action and deportation.
Criticism of Islam, the royal family, or government policies through social media, public statements, or private conversations can lead to arrest and prosecution under cybercrime and anti-terrorism laws.
Photography restrictions apply to government buildings, military installations, palaces, and individuals without consent. Social media posts must avoid political content or material deemed inappropriate by local standards.
What do most Americans say they wish they knew before moving to Saudi Arabia?
Americans consistently report wishing they had better prepared for cultural adaptation and legal requirements before their arrival in the Kingdom.
1. **Cultural sensitivity training**: Understanding Islamic customs, appropriate dress codes, and social etiquette prevents misunderstandings and demonstrates respect for local traditions.2. **Legal framework knowledge**: Familiarity with Saudi laws, particularly those affecting daily behavior, social media use, and personal conduct, helps avoid serious legal complications.3. **Arabic language basics**: While English is widely spoken in business, learning basic Arabic phrases enhances daily interactions and shows cultural appreciation.4. **Compound selection importance**: Choosing the right expatriate community significantly impacts social life, children's experiences, and overall satisfaction with life in Saudi Arabia.5. **Banking and financial setup**: Understanding the Islamic banking system, currency exchange procedures, and international money transfer regulations streamlines financial management.6. **Healthcare system navigation**: Knowing how to access medical services, insurance procedures, and prescription medication regulations ensures proper healthcare access.7. **Employment contract details**: Thoroughly reviewing visa sponsorship terms, end-of-service benefits, and repatriation clauses prevents future complications and ensures fair treatment.Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Americans living in Saudi Arabia benefit from significant financial advantages and modern amenities while navigating conservative cultural norms and strict legal restrictions.
Property ownership opportunities exist for qualified American residents, though proper legal guidance and cultural preparation remain essential for successful long-term residence in the Kingdom.
It's something we develop in our Saudi Arabia property pack.
Sources
- Statistics Americans Abroad - Savvy Nomad
- Saudi Arabia Global Talent Magnet 2025 - ManpowerGroup
- Life as an Expat in Saudi Arabia 2025 - Omnia Capital Group
- Living Cost Comparison Saudi Arabia vs United States
- American Expats in Saudi Arabia - Arab News
- Moving to Saudi Arabia from the US - International Van Lines
- Expat Life in Saudi Arabia - Expatica
- Buying Property in Saudi Arabia as US Citizen - Real Estate Saudi