Saudi Cabinet cancels expat worker fees for licensed industrial facilities

18/12/2025 02:49 AST

Saudi Arabia's Cabinet, chaired by Crown Prince Mohammed bin Salman, has approved the abolition of fees imposed on expatriate labor in industrial facilities licensed under an industrial permit, following a recommendation from the Council of Economic and Development Affairs.

The Saudi Press Agency reported that the decision reflects the Kingdom's ongoing support for the industrial sector and aligns with the crown prince's commitment to empowering national factories, enhancing their sustainability and global competitiveness, and advancing Saudi Vision 2030's goal of a resilient, diversified industrial economy.

The decision to abolish the financial levy on expatriate workers in industrial facilities will enhance the global competitiveness of Saudi industry and expand the reach of non-oil exports in international markets, said Minister of Industry and Mineral Resources Bandar Alkhorayef.

In remarks to SPA, Alkhorayef stated that the decision reflects the continued support and empowerment provided to the industrial sector by the crown prince. He emphasized that industry remains a key pillar of national economic diversification under Saudi Vision 2030.

He explained that the move will strengthen sustainable industrial development in the Kingdom, enhance national industrial capabilities, and attract high-quality investments, supported by the incentives and enablers offered by the industrial ecosystem.

Alkhorayef added that abolishing the levy will reduce factories' operating costs, enabling them to expand, grow, and increase production, while accelerating the adoption of modern operating models such as automation, artificial intelligence, and advanced manufacturing technologies - thereby improving efficiency and boosting the sector's global competitiveness.

The minister reaffirmed the ministry's commitment to supporting continued industrial growth, attracting international investment, and providing 800 investment opportunities across various industrial activities valued at SR1 trillion ($270 billion), in addition to tripling industrial gross domestic product to SR895 billion by 2035.

He noted that the government's coverage of the expatriate levy over the past six years - during the first and second exemption periods from Oct. 1, 2019, to Dec. 31, 2025 - played a pivotal role in driving qualitative growth in the industrial sector and expanding the Kingdom's industrial base.

Between 2019 and the end of 2024, the sector achieved significant milestones, including an increase in the number of industrial facilities from 8,822 factories to more than 12,000, and a 35 percent rise in total industrial investments from SR908 billion to SR1.22 trillion.

Non-oil exports grew by 16 percent, rising from SR187 billion to SR217 billion, while employment increased by 74 percent, from 488,000 workers to 847,000. Localization improved from 29 percent to 31 percent, and industrial GDP expanded by 56 percent, from SR322 billion to more than SR501 billion.

Arab News