How are Americans living in Saudi Arabia?

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Everything you need to know before buying real estate is included in our Saudi Arabia Property Pack

Who is the author of this content?

SANDS OF WEALTH

A team specialized in real estate investing in MENA countries (Morocco, UAE, Oman, etc.)

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Saudi Arabia. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At Sands of Wealth, we explore the Saudi Arabian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Riyadh, Jeddah, and Dammam. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

How many Americans are currently living in Saudi Arabia?

As of September 2025, approximately 45,000 Americans live in Saudi Arabia, representing one of the largest American expat communities in the Middle East.

The American population is primarily concentrated in three major urban areas: Riyadh (the capital), Jeddah (the commercial hub), and the Eastern Province cities of Dammam and Khobar where the oil industry is centered.

This figure represents a stable expat community that has grown alongside Saudi Arabia's Vision 2030 economic diversification program, which has created increased demand for international expertise across various sectors. The American community benefits from established expat infrastructure, including international schools, Western-style compounds, and business networks.

Most estimates range between 45,000 and 80,000 Americans, but the 45,000 figure appears most frequently in recent official and semi-official sources.

Why do Americans usually decide to move to Saudi Arabia?

Americans primarily relocate to Saudi Arabia for significant financial advantages and career advancement opportunities.

The most compelling factor is tax-free income, as Saudi Arabia does not impose income tax on local earnings, allowing Americans to keep substantially more of their salary compared to equivalent positions in the United States. Expat employment packages typically include housing allowances, annual flights home, international school tuition coverage, and comprehensive healthcare benefits.

Career opportunities are particularly strong in technology, healthcare, education, oil and energy, engineering, and finance sectors. The Saudi Vision 2030 economic transformation program has created high demand for American expertise in these fields, often offering accelerated career progression compared to the U.S. market.

Additional motivating factors include the experience of living in a rapidly modernizing society, exceptionally low crime rates providing personal safety, and for Muslim Americans, proximity to Islamic holy sites.

The combination of financial benefits and professional growth opportunities makes Saudi Arabia attractive despite cultural adjustments required.

Is English widely spoken in daily life and at work?

English is extensively used in business environments, education, healthcare, and urban daily life throughout Saudi Arabia.

In professional settings, English serves as the primary lingua franca, particularly in private sector companies and international organizations. Most Saudis working with expats, especially in professional services, technology, and healthcare, speak English fluently as it's the main foreign language taught in Saudi schools.

Daily life in major cities and expat compounds frequently operates in English, with many transactions, services, and social interactions conducted in English rather than Arabic. International schools, shopping malls, restaurants, and healthcare facilities typically accommodate English-speaking residents.

However, Arabic remains the national language and is essential for government interactions, legal matters, and community integration outside expat-focused areas.

Americans generally find language barriers minimal in urban professional environments, though learning basic Arabic phrases is recommended for cultural integration and practical daily situations.

What are the biggest cultural differences compared to the United States?

The most significant cultural differences revolve around religious law, gender roles, and social freedoms that fundamentally differ from American norms.

Cultural Aspect	Saudi Arabia	United States
Legal System	Islamic law (Sharia) governs daily life	Secular legal system with religious freedom
Gender Interaction	Public gender segregation, limited mixing	Full gender equality and social mixing
Social Structure	Family/group-oriented, hierarchical loyalty	Individual autonomy and merit-based
Expression Freedom	Limited political criticism, censored media	Open political discourse and free press
Religious Practice	Islamic practices integrated into daily schedule	Religious practices separate from public life
Work Schedule	Prayer times affect business hours	Standard business hours unrelated to religion
Public Behavior	Conservative dress codes and conduct rules	Liberal dress and behavior standards

What things tend to feel better than back home?

1. **Significantly lower living costs** - Overall expenses are 49% cheaper than the United States, with rent averaging 70% less expensive than comparable American cities2. **Tax-free employment benefits** - No Saudi income tax plus generous packages including paid housing, healthcare, and annual home flights3. **Enhanced personal safety** - Extremely low crime rates in urban areas and expat compounds provide exceptional security4. **Strong expat community support** - Large, established international social circles with organized activities and mutual assistance networks5. **Modern infrastructure development** - Newly constructed airports, transit systems, and urban developments often exceed American standards6. **Household help accessibility** - Affordable domestic services like cleaning, cooking, and childcare that would be expensive in the U.S.7. **Strategic travel location** - Easy access to explore Europe, Asia, and Africa with Saudi Arabia's central geographic position

These advantages particularly appeal to Americans seeking financial growth, career advancement, and international lifestyle experiences.

What things tend to feel worse or more difficult?

Conservative cultural restrictions create the most significant daily challenges for Americans accustomed to liberal social freedoms.

Strict dress codes, limited social mixing between unrelated men and women, and few public entertainment options can feel restrictive after American lifestyle norms. The extreme summer climate regularly exceeds 45°C (113°F), making outdoor activities difficult for much of the year.

Annual government fees for dependents create financial burdens for families, while censorship of media, regulated internet access, and careful social media monitoring contrast sharply with American freedom of expression expectations.

The Sharia-based legal system and employer-sponsored residency requirements create bureaucratic complexities that limit job mobility and travel freedom compared to American employment flexibility.

It's something we develop in our Saudi Arabia property pack.

How does the cost of living compare to the U.S.?

The overall cost of living in Saudi Arabia is approximately 49% lower than the United States, creating substantial savings opportunities for American expats.

Housing costs show the most dramatic difference, with rent averaging 70% less expensive than comparable American properties. Dining and restaurant expenses are 50-100% cheaper, while healthcare, education, and daily essentials cost substantially less than U.S. equivalents.

Utilities, transportation, and consumer goods generally cost 40-70% less than major American cities, though luxury imported items may carry premium prices. Expat employment packages typically provide housing allowances that further reduce effective living costs.

These cost advantages, combined with tax-free salaries, allow most American expats to maintain higher living standards while building significant savings compared to their home country earnings.

The purchasing power difference is particularly notable in urban areas like Riyadh and Jeddah, where expat-focused services remain affordable by American standards.

What is everyday lifestyle like for Americans living there?

Most Americans live in specially designed expat compounds that provide Western-style amenities and more relaxed cultural environments.

These compounds typically feature swimming pools, fitness centers, social clubs, and recreational facilities where residents can dress more casually and enjoy mixed-gender socializing not available in public Saudi spaces. Compound life creates a "bubble" effect that eases cultural adaptation while maintaining some American lifestyle elements.

Outside compounds, Americans adapt to local customs including modest public dress codes, gender segregation in restaurants and public transport, and respect for Islamic prayer times that affect business schedules.

Urban lifestyle centers around international schools for families, modern shopping malls, diverse restaurant options, and organized expat social activities. Weekend travel within the Gulf region is common and accessible.

Daily routines accommodate cultural requirements while leveraging expat infrastructure that makes basic needs comfortable and familiar.

What housing options are available, and can foreigners buy property?

Americans currently rent apartments or villas, with most choosing expat compounds designed specifically for Western residents.

Expat compounds offer the most popular housing option, featuring walled communities with Western amenities, tight security, and relaxed cultural environment compared to general Saudi housing. These compounds include furnished or unfurnished villas and apartments with modern facilities.

In major cities, Americans can rent standalone apartments and houses, though these require greater adaptation to local customs and may lack compound-style amenities and social networks.

Starting January 2026, groundbreaking new property ownership laws will allow foreigners, including Americans, to purchase real estate directly in major Saudi cities like Riyadh, Jeddah, and Dammam. This historic change ends decades of foreign ownership restrictions, though the holy cities of Mecca and Medina remain off-limits to non-Saudi ownership.

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 are the main challenges Americans face while living in Saudi Arabia?

1. **Adapting to strict legal and religious requirements** - Islamic law governs daily life with severe punishments for violations including alcohol possession, drug use, inappropriate public behavior, and gender interaction rules2. **Rising dependent fees and employment quotas** - Annual government fees for family members increase living costs, while Saudization policies prioritize Saudi citizen employment affecting expat job security3. **Employer-sponsored residency limitations** - Work-sponsored visa system restricts job mobility and requires employer permission for travel, limiting personal freedom compared to American employment flexibility4. **Cultural integration pressures** - Balancing respect for conservative social norms while maintaining personal identity and family traditions creates ongoing social navigation challenges5. **Limited entertainment and social options** - Fewer public recreational activities and restricted social mixing compared to American lifestyle expectations

These challenges require significant personal adaptation and long-term commitment to successfully integrate into Saudi society.

What legal or cultural considerations should newcomers be aware of?

All American expats must obtain and maintain work-sponsored residency permits (Iqama) that legally authorize their presence in Saudi Arabia.

Modest clothing requirements apply in all public spaces, with women no longer required to wear abayas but still expected to dress conservatively. Men should avoid shorts and sleeveless shirts in public settings.

Respect for local laws and customs includes avoiding public criticism of the government, refraining from open display of non-Islamic religious practices, and understanding appropriate social behavior expectations.

Gender segregation affects many public spaces including restaurants, government offices, and public transportation, requiring awareness of family sections versus bachelor areas.

Americans must understand that their U.S. constitutional rights do not apply in Saudi Arabia, and Saudi law takes precedence in all legal matters.

What advice do long-term American residents give to newcomers?

Maintaining an open-minded and adaptable attitude proves essential for successful integration into Saudi society.

1. **Learn basic Arabic phrases** - Simple greetings and common expressions facilitate daily interactions and demonstrate cultural respect to Saudi colleagues and neighbors2. **Build strong expat support networks** - Join American or international community groups, participate in compound social events, and connect children with international school communities3. **Understand financial and legal obligations** - Research U.S. tax filing requirements for overseas income, secure appropriate insurance coverage, and thoroughly review employment contract terms4. **Respect cultural differences with humility** - Approach new situations with curiosity rather than judgment, avoid confrontational attitudes, and show sensitivity to local customs and traditions5. **Prepare for gradual adaptation** - Expect cultural adjustment to take 6-12 months, maintain patience during bureaucratic processes, and focus on positive aspects of the expat experience

Long-term residents emphasize that cultural sensitivity, community engagement, and realistic expectations create the foundation for successful American expat life in Saudi Arabia.

It's something we develop in our Saudi Arabia property pack.

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.

Sources

1. Sands of Wealth - Americans Living in Saudi Arabia
2. Wikipedia - Americans Living in Saudi Arabia
3. Savvy Nomad - Americans Abroad Statistics
4. Living Cost - Saudi Arabia vs United States
5. Numbeo - Cost of Living Comparison
6. Expatica - Expat Life in Saudi Arabia
7. Wealth Consulting - Saudi Property Law Changes
8. U.S. State Department - Saudi Arabia Travel Information