Minister of Finance Mohammed Al-Jadaan has announced a review of the fee for dependents of expatriates in Saudi Arabia, emphasizing the nation's aim to attract new talent. The discussion took place during a program on the Thamanya podcast, shedding light on the economic considerations underlying the decision.

Implemented in July 2017, the fee initially amounted to SR100 per dependent per month, with subsequent yearly increments of SR100, reaching SR400 per dependent per month since 2020. Al-Jadaan highlighted the impact of this fee on the economy, citing its effects on expatriate spending patterns and the flow of funds outside the Kingdom.

The government's perspective on the imposition of dependents' fees is multifaceted. Al-Jadaan explained that while many services in Saudi Arabia are subsidized, the presence of over two million dependents utilizing these services for free necessitated a reevaluation. He emphasized the need to balance economic factors, particularly concerning the outflow of funds from the Kingdom.

In the context of ongoing economic reforms, Al-Jadaan underscored the importance of periodic review. Should the benefits of expatriate presence outweigh the costs, adjustments to the fee structure will be considered. The focus remains on attracting talent and ensuring the stability of expatriates and their families within the Saudi economy.

Addressing criticisms of the value-added tax (VAT) system, Al-Jadaan acknowledged concerns regarding its proportionality to income. He discussed the intricacies of tax policy within the Gulf Cooperation Council (GCC) framework, highlighting the challenges of income tax implementation and the prioritization of support for low-income segments.

Al-Jadaan's remarks reflect a comprehensive approach to economic policy, incorporating feedback and insights to optimize outcomes for Saudi Arabia's socioeconomic landscape. As the nation navigates reforms and fiscal adjustments, a balanced and strategic approach guides decision-making processes.