Cabinet approves extending expat fee waiver for industrial sector employees

A Cabinet meeting

The Saudi Cabinet, chaired by Crown Prince Mohammed bin Salman, approved today extending the state's coverage of the financial compensation required for expat workers in industrial establishments until December 31, 2025.

In September 2019, the Cabinet approved the state's coverage of financial compensation for expat workers in industrial establishments, for five years starting from Oct. 1, 2019, data available to Argaam showed.

In early Jan. 2018, Saudi Arabia began implementing new fees on expat workers, as part of the Financial Balance Program.
 

Minister of Industry and Mineral Resources Bandar Al-Khorayef said that the decision will increase the competitiveness of the national industry at the global level, provide more job opportunities, and enhance the access of Saudi non-oil exports to various global markets.
 

He revealed that the industrial sector has witnessed significant growth since the state began bearing the financial compensation in 2019, until the end of April 2024, as the number of industrial facilities increased from 8,822 to 11,868, employment growth rose by 57%, and the localization rate increased to 32%.
 

The industrial sector has recorded several gains since the state began bearing the financial compensation, as the value of total investments in the sector rose by 55% from SAR 992 billion in 2019, to more than SAR 1.54 trillion by the end of last year. Non-oil exports rose 12%, and the number of industrial establishments that benefited from the exemption reached more than 8,000 during the period from 2019 until the end of 2023, according to the Minister.