Saudi Arabia withdraws expatriate worker fees for industrial firms

Saudi Arabia has announced the removal of fees previously imposed on expatriate workers employed by industrial establishments holding an industrial licence.

The decision was approved by the Council of Ministers, chaired by Crown Prince and Prime Minister Mohammed bin Salman, following a recommendation from the Council of Economic and Development Affairs (CEDA).

The decision is aimed at supporting the industrial sector and strengthening the competitiveness of domestic factories, as part of wider efforts to diversify the economy under the Vision 2030 reform programme.

Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar Alkhorayef stated that the decision to revoke the expatriate fee for industrial workers will enhance sustainable industrial development in the Kingdom.

He also thanked King Salman and the Crown Prince for what he described as continued support for the sector.

He pointed out that this decision will contribute to enhancing the global competitiveness of the Saudi industry and increasing the reach and distribution of non-oil exports in various global markets.

He added that lowering costs would enable factories to adopt advanced technologies such as automation, artificial intelligence and modern manufacturing systems.

Bandar Alkhorayef emphasized that the government’s bearing of the financial burden over the past six years, during the first and second exemption periods extending from October 1, 2019, to December 31, 2025, played a pivotal role in the qualitative growth of the industrial sector and the expansion of its industrial base.

During the period from 2019 to the end of 2024, the sector has achieved significant rises, including an increase in the number of industrial establishments from 8,822 factories to more than 12,000, and a 35 percent increase in the total value of industrial investments, from SR908 billion to SR1.22 trillion.

Bandar Alkhorayef affirmed his ministry’s commitment to continuing its support for the growth of the industrial sector in the coming period, through integrated efforts with all relevant entities, empowering the private sector, and providing an industrial environment conducive to investment, innovation, and technology.