(Web Desk) – Saudi Arabia has announced the abolition of fees previously imposed on expatriate labour in industrial facilities licensed under an industrial permit, marking a significant boost for foreign workers in the Kingdom.
The decision on Thursday, was approved in a Cabinet meeting chaired by Crown Prince Mohammed bin Salman, following a recommendation from the Council of Economic and Development Affairs.
Minister of Industry and Mineral Resources Bandar Alkhorayef said the move reflects the government’s continued support for Saudi Vision 2030, which aims to create a resilient and diversified industrial economy.
“The decision will enhance the global competitiveness of Saudi industry and expand the reach of non-oil exports in international markets,” he added.
Alkhorayef explained that removing the financial levy will reduce operating costs for factories, allowing them to expand production and adopt modern industrial practices such as automation, artificial intelligence, and advanced manufacturing technologies.
He said the decision demonstrates the crown prince’s ongoing commitment to empowering the industrial sector as a key pillar of economic diversification.
The minister also highlighted that the Cabinet’s move is expected to attract high-quality investments, strengthen national industrial capabilities, and support sustainable industrial development in the Kingdom.
Saudi Arabia plans to offer 800 investment opportunities across various industrial activities valued at SR1 trillion ($270 billion) and aims to triple industrial gross domestic product to SR895 billion by 2035.
Alkhorayef further noted that government coverage of the expatriate levy during the first and second exemption periods, from October 1, 2019, to December 31, 2025, has already contributed to qualitative growth in the sector.
Between 2019 and the end of 2024, the number of industrial facilities increased from 8,822 to more than 12,000, while total industrial investments rose by 35 percent, from SR908 billion to SR1.22 trillion.
Non-oil exports grew by 16 percent, from SR187 billion to SR217 billion, employment increased by 74 percent, from 488,000 workers to 847,000, and localisation improved from 29 percent to 31 percent. Industrial GDP expanded by 56 percent, from SR322 billion to over SR501 billion.
