Saudi Arabia cancels expat fee to boost industrial growth

• Minister says move will raise competitiveness
• Aims to support growth in non-oil industries
• Factories to have lower operating costs

Saudi Arabia, seeking to support non-oil growth, has cancelled a levy on the hiring of foreign workers in licensed industrial establishments.

The decision was taken during a cabinet meeting chaired by Crown Prince Mohammed bin Salman following a recommendation by the council of economic and development affairs, the state-owned Saudi Press Agency reported.

Minister of industry and mineral resources Bandar Alkhorayef said the decision will strengthen the global competitiveness of Saudi industry and expand the reach and presence of non-oil exports in international markets.

Between 2019 and the end of 2024, the number of industrial facilities rose from 8,822 to more than 12,000. Industrial investments increased by 35 percent to SAR1.22 trillion ($325 billion) from SAR908 billion.

Over the same period, non-oil exports grew by 16 percent to SAR217 billion from SAR187 billion. Industrial employment rose 74 percent to 847,000 workers, while localisation increased from 29 percent to 31 percent.

Industrial GDP increased 56 percent to more than SAR501 billion.

Further reading:

• Made in Saudi: the rise of local manufacturing
• Saudi’s hunger for homegrown food attracts tasty US partnerships
• New licences drive strong Saudi industrial growth

The minister said the cabinet decision will reduce operating costs for factories, help them expand production, and accelerate the adoption of automation, artificial intelligence, and advanced manufacturing technologies.

Earlier this week Alkhorayef said non-oil exports rose to a record SAR307 billion in the first half of 2025, with local products shipped to 180 countries.

The General Authority for Statistics said this month that international trade reached SAR541 billion in the quarter ending September 2025, a 9 percent increase from a year earlier.