Riyadh, Saudi Arabia – In a major policy decision aimed at strengthening the Kingdom’s industrial ecosystem, the Saudi Cabinet has approved the abolition of expatriate labor fees for licensed industrial facilities. The decision was made during a Cabinet meeting chaired by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister of Saudi Arabia.
The move comes following recommendations from the Council of Economic and Development Affairs and reflects the Kingdom’s ongoing commitment to supporting industrial growth, enhancing competitiveness, and improving the overall business environment.
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Boost to Saudi Arabia’s Industrial Sector
The abolition of expatriate labor fees is expected to significantly reduce operational costs for industrial companies, enabling manufacturers to reinvest savings into expansion, modernization, and workforce development. This policy will also help attract local and foreign industrial investment, improve supply chain efficiency, and accelerate industrial localization across the Kingdom.
By easing financial pressures on factories, the decision supports higher productivity levels and strengthens the sustainability of national industries in both domestic and global markets.
Supporting Vision 2030 Economic Goals
This landmark decision aligns closely with the objectives of Saudi Vision 2030, which prioritizes economic diversification and aims to increase the contribution of the non-oil industrial sector to the Kingdom’s GDP. The policy reflects the Crown Prince’s strategic vision of building a resilient, competitive, and globally integrated industrial economy.
The move further reinforces Saudi Arabia’s adoption of flexible and growth-oriented economic policies, positioning the Kingdom as an increasingly attractive destination for industrial enterprises and long-term investments.
Strengthening Global Competitiveness
With the removal of expatriate labor fees, Saudi Arabia continues to enhance its industrial investment climate, supporting manufacturers in achieving greater efficiency while maintaining global competitiveness. Industry stakeholders view the decision as a strong signal of the government’s long-term support for industrial development and economic transformation.