Saudi Arabia’s Cabinet, chaired by Crown Prince Mohammed bin Salman, on December 17, approved the abolition of fees imposed on expatriate labour in industrial facilities licensed under an industrial permit, following a recommendation from the Kingdom’s Council of Economic and Development Affairs.
According to the Saudi Press Agency (SPA), the decision reflects the Kingdom’s ongoing support for the industrial sector, apart from aligning with the Crown Prince Mohammed bin Salman’s commitment to empowering national factories, enhancing their sustainability and global competitiveness, and advancing Saudi Vision 2030’s goal of a resilient, diversified industrial economy.
“The decision to abolish the financial levy on expatriate workers in industrial facilities will enhance the global competitiveness of Saudi industry and expand the reach of non-oil exports in international markets,” said Minister of Industry and Mineral Resources Bandar Alkhorayef.
Bandar Alkhorayef further stated that the decision reflects the continued support and empowerment provided to the industrial sector by Crown Prince Mohammed bin Salman. While emphasising that industry remains a key pillar of national economic diversification under “Vision 2030,” the official also explained that the policy reform will strengthen sustainable industrial development in the Kingdom, apart from enhancing national industrial capabilities, and attracting high-quality investments, supported by the incentives and enablers offered by the industrial ecosystem.
Bandar Alkhorayef added that abolishing the levy will reduce factories’ operating costs, enabling them to expand, grow, and increase production, while accelerating the adoption of modern operating models such as automation, artificial intelligence (AI), and advanced manufacturing technologies — thereby improving efficiency and boosting the sector’s global competitiveness.
The minister reaffirmed his department’s commitment to supporting continued industrial growth, attracting international investment, and providing 800 investment opportunities across various industrial activities valued at SR1 trillion (USD 270 billion), in addition to tripling industrial GDP to SR895 billion by 2035.
Bandar Alkhorayef noted that the Saudi government’s coverage of the expatriate levy over the past six years, during the first and second exemption periods from October 1, 2019, to December 31, 2025, played a pivotal role in driving qualitative growth in the industrial sector, apart from expanding the Kingdom’s industrial base.
Between 2019 and the end of 2024, the sector achieved significant milestones, including an increase in the number of industrial facilities from 8,822 factories to more than 12,000, and a 35% rise in total industrial investments from SR908 billion to SR1.22 trillion.