The gross domestic product (GDP) of Saudi Arabia increased by 14.7%, from SR392 billion (USD 104.5 billion) in 2019 to SR592 billion in 2023, largely due to the Gulf country’s decision to waive fees for foreign workers in the industrial sector.
In addition to stimulating GDP growth, this policy has improved non-oil exports, which have increased to about SR208 billion, a 12% increase since 2019, according to a report by the Economic Studies Centre at the Federation of Saudi Chambers.
This initiative is part of the Kingdom’s larger plan to boost growth and draw investment in its industrial sector, and it is in effect until December 31.
The study also highlights the significant contributions that trade agreements and the opening of new markets have made to this upward trend, with the local content value in non-oil sectors expected to reach SR1.14 trillion by the end of 2023.
The waiver, which removed about SR5 billion in expatriate labour fees, has helped over 8,000 industrial firms. The analysis demonstrates how this policy has pushed industrial facilities to employ cutting-edge business strategies, localise cutting-edge technologies, and draw in highly qualified workers, all of which have increased the supply of goods to satisfy regional demand.
An increase in the quantity of goods with the Saudi quality mark is indicative of higher-quality goods. The Saudi Press Agency carried out a thorough analysis that assesses the decision’s impact on seven economic indicators, such as GDP contribution, the expansion of industrial establishments, and investment volumes.
The GDP of the industrial sector increased from SR392 billion in 2019 to SR592 billion in 2023, with a contribution rate of 14.7%, according to key findings.
The number of industrial establishments increased by 55.6%, from 7,625 in 2019 to 11,868 in 2024, while investments in the sector increased by 54%, from SR992 billion to SR1.5 trillion.
The report also shows that government support initiatives, like paying for financial fees and putting in place the local content system, have contributed to a significant increase in foreign investments.