Saudi Arabia scraps major expat fee as industry investment surges past $325bn

Saudi Arabia has approved the cancellation of the expat levy on foreign workers in licensed industrial establishments, reinforcing the Kingdom’s push to strengthen industrial competitiveness and accelerate non-oil economic growth under Saudi Vision 2030.

The move comes as industrial investment, employment and exports record sharp gains.

The decision was approved by the Cabinet, chaired by Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, based on the recommendation of the Council of Economic and Development Affairs.

Expat jobs in Saudi Arabia

The Cabinet decision reflects continued support for the Kingdom’s industrial sector and underscores the Crown Prince’s commitment to enabling national factories, strengthening their sustainability and enhancing global competitiveness.

The move aligns with the objective of building a competitive and resilient industrial economy, with industry positioned as a cornerstone of economic diversification.

Minister of Industry and Mineral Resources Bandar Alkhorayef expressed his gratitude to Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, following the approval of the decision.

Alkhorayef said the move reflects the continued empowerment of the industrial sector and supports diversification goals under Saudi Vision 2030.

He said the decision will enhance the global competitiveness of Saudi industry and expand the international reach of non-oil exports.

Alkhorayef highlighted the impact of the expat levy exemption over the past six years, spanning the first and second exemption periods from October 1, 2019, to December 31, 2025, describing it as a critical driver of qualitative industrial growth.

Industrial milestones

Between 2019 and the end of 2024, the industrial sector achieved the following gains:

• Number of factories increased from 8,822 to more than 12,000
• Industrial investment rose 35 per cent, from SR908bn ($242bn) to SR1.22tn ($325bn)
• Non-oil exports grew 16 per cent, from SR187bn ($49.9bn) to SR217bn ($57.9bn)
• Employment increased 74 per cent, from 488,000 to 847,000 workers
• Localisation rose from 29 per cent to 31 per cent
• Industrial GDP grew 56 per cent, from SR322bn ($85.9bn) to more than SR501bn ($133.6bn)

Alkhorayef said these results would not have been possible without sustained leadership support for the industry and mineral resources ecosystem.

Lower costs for businesses

The minister said the cancellation of the expat levy will further strengthen sustainable industrial development, enhance national industrial capabilities and attract high-quality investments.

The move is expected to reduce operating costs for factories, support expansion and output growth, and accelerate the adoption of advanced operating models, including automation, artificial intelligence and advanced manufacturing technologies.

Alkhorayef reaffirmed the ministry’s commitment to supporting the industrial sector through close cooperation with relevant entities, private-sector empowerment and the creation of an investment-friendly industrial environment focused on innovation and technology.

He said the Kingdom aims to become a global industrial powerhouse by enabling advanced industries, attracting international investment, offering 800 industrial investment opportunities worth SR1tn ($267bn) and tripling industrial GDP to SR895bn ($239bn) by 2035, reinforcing industry as a central pillar of economic diversification.