In a significant move to support the industrial sector, Saudi Arabia has decided to permanently abolish the expatriate levy for foreign workers employed in companies holding valid industrial licenses. The decision was approved during a Cabinet session chaired by Crown Prince Mohammed bin Salman and marks a major shift from the previous temporary exemption policy, which was set to expire by the end of this month.
Under the new regulation, industrial establishments will no longer be required to pay the levy when renewing the residency permits (iqamas) of their expatriate employees. Previously, companies benefited from a temporary waiver, but the levy—which could reach up to 9,700 Saudi riyals per worker annually—will now be completely removed for eligible entities. This move is expected to substantially reduce operational costs for factories and manufacturers relying on expatriate labor.
The decision aligns with Saudi Arabia's broader economic diversification strategy under Vision 2030, which aims to boost industrial growth, enhance competitiveness, and attract investment. By lowering employment costs in the industrial sector, the government intends to encourage expansion, promote job creation, and improve the business climate for both local and international investors.
Industry leaders and business groups have welcomed the move as a timely relief that will help stabilize workforce planning and reduce financial pressure on industrial firms. The permanent removal of the levy is also seen as a step toward simplifying regulatory procedures and supporting the Kingdom's goal of positioning itself as a leading global industrial hub. Further details on implementation and eligibility are expected to be announced by the relevant authorities in the coming weeks.
Lorem ipsum dolor sit amet, consectetur adipisicing elit. Velit omnis animi et iure laudantium vitae, praesentium optio, sapiente distinctio illo?