Saudi Arabia lifts expatriate fees to boost industrial sector
Saudi Arabia has removed the expatriate levy imposed on foreign workers employed in industrial facilities operating under official industrial licences, in a move aimed at strengthening the kingdom’s manufacturing base and boosting competitiveness.
The decision was approved during a cabinet meeting chaired by Crown Prince and Prime Minister Mohammed bin Salman, following a recommendation from the Council of Economic and Development Affairs, Saudi media reported. The measure is expected to ease cost pressures on industrial firms and encourage expansion in key sectors.
Officials said the step supports the objectives of Saudi Vision 2030, the kingdom’s long-term economic reform plan that seeks to reduce dependence on oil revenues by promoting industry, mining and advanced manufacturing as core drivers of growth and job creation.
Minister of Industry and Mineral Resources Bandar Alkhorayef said abolishing the fees would accelerate sustainable industrial development, improve the operating environment for factories and enhance Saudi Arabia’s appeal as a regional manufacturing hub. He added that the decision would help local and international investors scale up production and strengthen supply chains.
The expatriate levy, introduced in recent years as part of labour market reforms, had increased operating costs for companies heavily reliant on skilled foreign workers. Its removal for the industrial sector is expected to support investment, increase capacity utilisation and help achieve the kingdom’s targets for industrial output, exports and non-oil GDP growth.
Alkhorayef expressed gratitude to King Salman and the crown prince for backing the move, saying it reflects the leadership’s commitment to supporting industry as a pillar of economic diversification and long-term development.
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