Saudi Arabia has approved a decision to revoke fees imposed on expatriate workers employed in industrial establishments operating under an industrial license.
The move aims to reduce operational costs and strengthen the Kingdom’s industrial sector.
The decision was issued by the Council of Ministers, chaired by Crown Prince and Prime Minister Mohammed bin Salman. It was based on recommendations from the Council of Economic and Development Affairs.
This step reflects continued government support for national factories and industrial growth. It also aligns with leadership efforts to enhance sustainability and global competitiveness.
The decision supports Saudi Arabia’s long-term goal of building a resilient and competitive industrial economy. Industry remains a key pillar of economic diversification under Saudi Vision 2030.
Minister of Industry and Mineral Resources Bandar Alkhorayef said the move will boost sustainable industrial development. He expressed appreciation to King Salman and Crown Prince Mohammed bin Salman for their continued support.
Alkhorayef stated that removing expatriate worker fees will strengthen the global competitiveness of Saudi industry. It will also help expand the reach of non-oil exports in international markets.
He highlighted that government support over the past six years was crucial to sectoral growth.
Exemption periods from October 1, 2019, to December 31, 2025, played a pivotal role in expansion.
Between 2019 and the end of 2024, industrial establishments increased from 8,822 to over 12,000. Total industrial investments rose by 35 percent, from SAR 908 billion to SAR 1.22 trillion.
Non-oil exports grew by 16 percent, increasing from SAR 187 billion to SAR 217 billion. Industrial employment surged by 74 percent, reaching 847,000 workers.
The Saudization rate improved from 29 percent to 31 percent during this period. Industrial GDP expanded by 56 percent, rising from SAR 322 billion to over SAR 501 billion.
Alkhorayef noted that these achievements were driven by strong leadership support for industry and mining. He stressed that continued backing is essential for long-term sustainability.
The new decision is expected to reduce factory operating costs and enable expansion. It will also accelerate adoption of automation, artificial intelligence, and advanced manufacturing.
The Ministry of Industry and Mineral Resources reaffirmed its commitment to sector growth. It will continue working with relevant entities to create an attractive environment for investment and innovation.
Saudi Arabia aims to become a leading global industrial power by 2035. Plans include offering 800 investment opportunities worth SAR 1 trillion and tripling industrial GDP to SAR 895 billion.