RIYADH. In a significant move for the Kingdom’s industrial sector, Saudi Arabia has revoked the financial levy on expatriate workers in all licensed industrial establishments. The decision was made during a cabinet meeting chaired by Crown Prince and Prime Minister Mohammed bin Salman. This move followed a recommendation from the Council of Economic and Development Affairs.
The manufacturing and industrial sectors had been waiting for this announcement as the current exemption for these workers was scheduled to end on December 31, 2025. The government had previously been covering these fees to stimulate investment in the sector. By making the exemption permanent through this revocation, the leadership aims to provide long-term stability and reduce operating costs for industrial businesses across the Kingdom.
Minister of Industry and Mineral Resources Bandar Alkhorayef praised the decision and stated that the previous six years of exemptions were vital for growth. He explained that this period allowed the Kingdom to expand its industrial base and encouraged many businesses to adopt more modern manufacturing models. According to the Minister, this progress was the main reason the government decided to remove the levy permanently.
The impact of government support over the last several years is clearly shown by the sector’s performance data. Since the start of the exemption period, the number of industrial establishments in the Kingdom grew from 8,822 to more than 12,000. Total industrial investments also saw a major increase of 35 percent, rising from 908 billion riyals to 1.2 trillion riyals. These figures reflect a strong and growing industrial landscape that is increasingly capable of competing on an international level.
Other economic indicators have shown similar levels of success during this time. Non-oil exports grew by 16 percent, reaching a value of 217 billion riyals. Employment in the sector witnessed massive growth of 74 percent, with the workforce increasing from 488,000 to 847,000 people. Additionally, the industrial contribution to the national GDP grew by 56 percent, rising from 322 billion riyals to its current value of 501 billion riyals.
Minister Alkhorayef emphasized that these achievements were made possible by the unwavering support of the Kingdom’s leadership for the industrial and mineral resources ecosystem. He noted that the Cabinet’s latest decision will help attract more high-quality investments and strengthen national industrial capabilities.
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