Saudi Arabia Permanently Cancels Expat Levy for Industrial Sector
Jeddah: Saudi Arabia has officially revoked the financial levy on expatriate workers in licensed industrial establishments across the Kingdom. The Cabinet approved this decision during a meeting led by Crown Prince and Prime Minister Mohammed bin Salman. This move followed a recommendation from the Council of Economic and Development Affairs to support the nation’s industrial growth.
Businesses in the manufacturing and industrial sectors were expecting this announcement. These workers had already been exempted from the fee for the past six years. Since that exemption period was set to expire on December 31, 2025, the new decision provides permanent relief for the industry.
The Minister of Industry and Mineral Resources, Bandar Alkhorayef, praised the decision. He noted that the previous exemption period was vital for the growth of the industrial sector. It helped expand the Kingdom’s industrial base, which ultimately led to the government’s choice to revoke the levy entirely.
The Minister shared that the industrial sector saw significant progress during the exemption period between 2019 and 2024. During this time, the number of industrial businesses in the Kingdom grew from 8,822 to more than 12,000. Total industrial investments also increased by 35 percent, rising from 908 billion riyals to 1.2 trillion riyals. Other areas of the economy showed similar success. Non-oil exports grew by 16 percent, rising from 187 billion riyals to 217 billion riyals. Employment in the sector also saw massive growth of 74 percent. The number of workers increased from 488,000 to 847,000. These efforts helped the industrial GDP grow by 56 percent, reaching 501 billion riyals.
Source: Ministry of Industry and Mineral resources, Saudi Arabia
The Minister stated that these achievements were made possible by the strong support of the Kingdom’s leadership. He added that the latest decision will further strengthen industrial development and improve national capabilities. It is also expected to attract more high-quality investments by utilizing the incentives offered within the Kingdom’s industrial system.
