Saudi Cabinet Approves Cancellation of Fees on Expat Labor in Industrial Sector to Boost Competitiveness

Riyadh – According to the Saudi Press Agency (SPA)

The Saudi Cabinet, chaired by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, has approved a decision to cancel the financial fees imposed on expat labor in licensed industrial establishments, based on a proposal from the Council of Economic and Development Affairs.

This decision aligns with the ongoing support for the industrial sector from the wise leadership and is consistent with the Kingdom's strategic directions aimed at empowering national factories, enhancing their sustainability, and increasing their competitiveness both locally and globally, solidifying the role of industry as a core pillar for diversifying the national economy.

Direct Support for the Industrial Sector

The cancellation of fees on expat labor represents a practical step to alleviate operational burdens on industrial establishments, especially in labor-intensive sectors, contributing to:

• Reducing production costs and improving profit margins.

• Enhancing the attractiveness of local and foreign industrial investment.

• Supporting expansion in the production capacity of existing factories.

• Improving the competitiveness of Saudi industrial exports in global markets.

Alignment with Saudi Vision 2030

This decision reaffirms the government's commitment to achieving the objectives of Saudi Vision 2030, which places industry at the heart of economic transformation by building a diverse and resilient industrial economy, reducing dependence on oil, and maximizing the contribution of the industrial sector to GDP.

It also aligns with the programs of the National Industrial Strategy, local content initiatives, and supply chains aimed at localizing advanced industries, attracting modern technologies, and creating quality job opportunities for citizens.

Expected Economic Impact

The decision is expected to positively reflect on:

• Investor confidence in the regulatory environment of the industry.

• Speeding up new industrial investment decisions.

• Supporting small and medium enterprises operating in the industrial sector.

• Enhancing the financial and operational sustainability of national factories amid global challenges.

This decision marks a continuation of a series of governmental measures aimed at stimulating industrial growth and reinforces the pivotal role of the industrial sector in achieving comprehensive economic development for the Kingdom.

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Source: Saudi Press Agency (SPA)