Saudi Gazette report
RIYADH —Saudi Arabia has revoked fees imposed on expatriate workers in industrial establishments licensed under an industrial license.

The decision was taken by the Council of Ministers, chaired by Crown Prince and Prime Minister Mohammed bin Salman. This was based on the recommendation of the Council of Economic and Development Affairs (CEDA).

This decision comes as a continuation of the support and empowerment that the industrial sector receives from the wise leadership, and within the framework of the Crown Prince's keenness and interest in empowering national factories, enhancing their sustainability and global competitiveness.

This is also aimed at achieving the Kingdom's ambitious vision towards building a competitive and resilient industrial economy, as industry is one of the fundamental pillars for diversifying the national economy in accordance with Saudi Vision 2030.

Minister of Industry and Mineral Resources Bandar Alkhorayef said that the Cabinet decision to revoke expatriate fee for industrial workers will enhance sustainable industrial development in the Kingdom. He expressed his sincere gratitude and appreciation to Custodian of the Two Holy Mosques King Salman and Crown Prince and Prime Minister Mohammed bin Salman in this regard.

Alkhorayef said that the decision is an extension of the continuous support and empowerment the industrial sector receives from the Crown Prince, considering industry as a fundamental pillar for diversifying the national economy in accordance with the Kingdom's Vision 2030. He pointed out that this decision will contribute to enhancing the global competitiveness of Saudi industry and increasing the reach and distribution of non-oil exports in various global markets.

Alkhorayef emphasized that the government's bearing of the financial burden over the past six years, during the first and second exemption periods extending from October 1, 2019, to December 31, 2025, played a pivotal role in the qualitative growth of the industrial sector and the expansion of its industrial base.

During the period from 2019 to the end of 2024, the sector has achieved significant leaps, including an increase in the number of industrial establishments from 8,822 factories to more than 12,000, and a 35 percent increase in the total value of industrial investments, from SR908 billion to SR1.22 trillion. Non-oil exports also recorded growth of 16 percent, increasing in value from SR187 billion to SR217 billion. Employment grew by 74 percent from 488,000 employees to 847,000, and the Saudization rate rose from 29 percent to 31 percent. The industrial GDP increased by 56 percent from SR322 billion to over SR501 billion. He explained that these achievements would not have been possible without the significant support the industrial and mineral resources sector receives from the wise leadership.
Alkhorayef pointed out that the Cabinet's decision will enhance sustainable industrial development in the Kingdom, contribute to developing national industrial capabilities, and attract more quality investments, given the enablers and incentives offered by the industrial sector. It will also reduce operating costs in factories, enabling them to expand, grow, and increase their production, and accelerate the adoption of modern business models by industrial establishments, such as automation solutions, artificial intelligence, and advanced manufacturing technologies. This will raise the efficiency of the industrial sector and enhance its global competitiveness.

Alkhorayef affirmed his ministry's commitment to continuing its support for the growth of the industrial sector in the coming period, through integrated efforts with all relevant entities, empowering the private sector, and providing an industrial environment conducive to investment, innovation, and technology. This reflects the Kingdom's commitment to achieving its vision of becoming a leading global industrial power by enabling advanced industries, attracting international investments, providing 800 investment opportunities in various industrial activities worth SR1 trillion, and tripling the industrial GDP to reach SR895 billion by 2035, thus maximizing the role of industry as one of the fundamental pillars of diversifying the national economy.