Saudi Arabia has officially cancelled expatriate worker fees for industrial companies holding a valid industrial license, a strategic move aimed at strengthening the Kingdom’s manufacturing sector and enhancing global competitiveness under Saudi Vision 2030.
Cabinet Approves Expat Fee Cancellation
The decision was approved by the Council of Ministers, chaired by Crown Prince and Prime Minister Mohammed bin Salman, following a recommendation from the Council of Economic and Development Affairs (CEDA). The move reflects the leadership’s continued confidence in the industrial sector as a key driver of economic diversification.
Strong Government Support for the Industrial Sector
This step aligns with national efforts to build a resilient, sustainable, and globally competitive manufacturing base. Industry plays a central role in reducing oil dependence and expanding non-oil economic activities, as outlined in Saudi Vision 2030 initiatives.
Minister of Industry Welcomes the Decision
Minister of Industry and Mineral Resources Bandar Alkhorayef welcomed the Cabinet’s decision, stating that removing expatriate worker fees will significantly support sustainable industrial growth and improve cost efficiency for factories across the Kingdom.
He expressed appreciation to the Custodian of the Two Holy Mosques, King Salman, and Crown Prince Mohammed bin Salman for their ongoing support of the industrial ecosystem and long-term development strategies.
Boosting Global Competitiveness and Non-Oil Exports
According to Alkhorayef, the decision strengthens Saudi Arabia’s position in global markets by enabling industrial companies to reduce operating costs, scale production, and increase exports. This complements ongoing efforts to expand Saudi non-oil exports worldwide.
Six Years of Continuous Government Support
The government has borne the financial cost of expatriate worker fees for six consecutive years. The first and second exemption periods ran from October 1, 2019, to December 31, 2025, contributing significantly to industrial expansion and investor confidence.
Major Industrial Growth Achievements Since 2019
From 2019 to the end of 2024, Saudi Arabia’s industrial sector recorded remarkable progress:
- Factories increased from 8,822 to more than 12,000.
- Industrial investment rose by 35%, from SR908 billion to SR1.22 trillion.
- Non-oil exports grew by 16%, reaching SR217 billion.
- Employment increased by 74%, reaching 847,000 workers.
- Saudization improved from 29% to 31%.
- Industrial GDP grew by 56%, exceeding SR501 billion.
Lower Costs and Advanced Manufacturing Technologies
By cancelling expatriate worker fees, factories can redirect savings toward expansion and modernization. The decision is expected to accelerate the adoption of advanced technologies such as automation, artificial intelligence, and smart manufacturing systems, improving productivity and efficiency.
Future Plans for Industrial Growth
The Ministry of Industry and Mineral Resources will continue collaborating with public and private partners to support long-term industrial development. Saudi Arabia aims to become a leading global industrial power, attract foreign investment, and offer more than 800 industrial investment opportunities valued at SR1 trillion.
Under Vision 2030, the Kingdom plans to triple industrial GDP to SR895 billion by 2035, reinforcing industry as a cornerstone of economic diversification and sustainable growth.
