Saudi Arabia extends waiver on expat fees for industrial sector employees

This decision, effective until Dec. 31, 2024, is part of the Kingdom’s broader strategy to stimulate growth and investment in its industrial sector. File
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RIYADH: Saudi Arabia on Tuesday announced an extension of its waiver on fees for expatriate workers in the industrial sector, continuing a policy first introduced in 2019.

This decision, effective until Dec. 31, 2024, is part of the Kingdom’s broader strategy to stimulate growth and investment in its industrial sector.

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef expressed his gratitude to King Salman and Crown Prince Mohammed bin Salman for their continued support, the Saudi Press Agency reported.

He emphasized that the extension of the fee waiver will further stimulate the industrial sector, generate more employment opportunities, and bolster Saudi Arabia’s non-oil exports.

The minister said the waiver has been instrumental in transforming the industrial landscape of Saudi Arabia. Since its inception, the number of industrial establishments has surged from 8,822 to 11,868 by April 2024. This substantial increase reflects the sector’s expansion and the positive impact of the government’s financial incentives, he added.

Employment within the sector has also seen a significant boost, growing by 57 percent, while the localization rate — the proportion of Saudi nationals employed—has risen to 32 percent. These developments highlight the effectiveness of the policy in creating job opportunities for Saudis and enhancing local workforce integration.

According to the minister, investment in the industrial sector has soared by 55 percent, with total investments climbing from SR992 billion ($264.24 billion) in 2019 to more than SR1.542 trillion by the end of 2023. This increase underscores the success of the fee waiver in attracting and sustaining high levels of investment, he added.

Additionally, Saudi Arabia’s non-oil exports have experienced a notable 12 percent rise during the same period, demonstrating the sector’s growing contribution to the Kingdom’s export economy.

In conjunction with this announcement, the Cabinet approved several significant international agreements. Among these is a mutual visa exemption agreement with Uzbekistan for holders of diplomatic and special passports, aimed at strengthening bilateral relations.

The Cabinet also endorsed a memorandum of understanding with China to foster cultural cooperation and another with Switzerland to enhance tourism collaboration.

Furthermore, the Cabinet reviewed Saudi Arabia’s initiatives to advance global sustainability and environmental conservation efforts. It authorized Investment Minister Khalid Al-Falih to negotiate and sign a MoU with Georgia to promote direct investment, reflecting the Kingdom’s commitment to expanding its international economic partnerships.