Saudi Arabia Cancels Financial Fees for Expat Workers in Industrial Facilities

SadaNews - The Saudi Council of Ministers, chaired by Crown Prince Mohammed bin Salman, has approved the cancellation of the financial fees imposed on expat workers in licensed industrial facilities, according to a statement reported by the Saudi Press Agency (SPA) today.

This decision comes to enable national factories, enhance their sustainability and global competitiveness, and to realize the Kingdom's vision of building a competitive and flexible industrial economy, considering industry as one of the fundamental pillars for diversifying the Kingdom's economy in accordance with Vision 2030.

The industrial production in Saudi Arabia grew by 8.9% year-on-year during October, compared to an expansion of 9.3% in September, according to data from the General Authority for Statistics.

Competitiveness of Saudi Industry

The Minister of Industry and Mineral Resources, Bandar Al Khorayef, asserted that this decision will contribute to enhancing the global competitiveness of Saudi industry, and increasing the reach of non-oil exports across various global markets.

Saudi Arabia began implementing fees for expat labor as part of the fiscal balance program in early January 2018, with the monthly financial compensation ranging from 300 to 700 riyals per worker in cases where the number of expatriate workers does not exceed that of Saudis, and from 400 to 800 riyals monthly if expatriate labor is higher than its national counterpart.

Starting from October 2019, the Saudi government bore the financial burden, and Al Khorayef stated in remarks published by the Saudi Press Agency today that the government's assumption of this burden over the past six years "has played a crucial role in the qualitative growth of the industrial sector and the expansion of the industrial base over the past six years."

The Kingdom Aims to Provide 800 Industrial Opportunities

The minister confirmed the continuation of support for the growth of the industrial sector in the upcoming period, to provide 800 investment opportunities in various industrial activities worth one trillion riyals, and to triple the industrial GDP to reach 895 billion riyals by 2035.

The number of industrial facilities rose from 8,822 factories in the period from 2019 to 2024 to more than 12,000, and the total value of industrial investments increased by 35% to 1.22 trillion riyals. Non-oil exports grew by 16% to 217 billion riyals, job opportunities increased by 74% to 847,000, the localization rate rose from 29% to 31%, and the industrial GDP grew by 56% to more than 501 billion riyals.