Cancellation of fees for expatriate workers in Saudi factories
In a strategic move reflecting the Kingdom of Saudi Arabia's commitment to strengthening its industrial sector, the Council of Ministers, in its session chaired by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, approved a decision to abolish the fees imposed on expatriate workers in industrial establishments holding an industrial license. This decision, based on recommendations submitted by the Council of Economic and Development Affairs, represents a significant boost to the Kingdom's industrial development.
Strategic support for achieving Vision 2030
This pivotal decision comes at a crucial time, aligning with the goals of Vision 2030, which places the industrial sector at the heart of the national economic transformation. Through the National Industrial Development and Logistics Program (NIDLP), the Kingdom aims to transform itself into a leading industrial power and a global logistics hub. Eliminating the financial levy is an effective tool for easing operational burdens on factories, directly contributing to diversifying national income sources and reducing reliance on oil as the primary source of revenue.
Economic impact and enhanced competitiveness
This decision has far-reaching economic implications, as it directly contributes to reducing production costs for domestic factories, thereby enhancing their competitiveness in both local and international markets. Lowering operational costs enables Saudi products to compete on price with imported goods and supports the "Made in Saudi Arabia" initiative, which aims to increase non-oil exports. Furthermore, this step sends a reassuring message to foreign investors, confirming that the Kingdom's investment environment is becoming increasingly flexible and attractive, thus encouraging global capital to inject new investments into the Saudi industrial sector.
Industrial sector sustainability and decision background
It is worth noting that this support is not a recent development, but rather an extension of previous government policies aimed at protecting this vital sector. The state previously covered the fees for expatriate workers in industrial establishments for five years, starting in 2019, with the goal of improving the conditions of factories and enabling their stability. Today's decision to cancel these fees solidifies this support, transforming it from a temporary measure into a permanent competitive advantage. This will ensure the sustainability of existing factories and encourage entrepreneurs to enter this field, which will positively impact the creation of new job opportunities and the localization of advanced industrial technologies.
