Saudi Arabia has approved the removal of work permit fees for expatriate employees within licensed manufacturing establishments to boost its industrial ambitions.
The decision was made during a session of the Council of Ministers, presided over by Crown Prince and Prime Minister Mohammed bin Salman, following a proposal from the Council of Economic and Development Affairs (CEDA), reports Saudi Gazette.
The move, which eliminates the financial levy commonly referred to as “Iqama” fees, is designed to empower the industrial sector and aligns with the broader objectives of Saudi Vision 2030.
Minister of Industry and Mineral Resources Bandar Alkhorayef said that the cabinet’s decision to revoke the financial levy for expatriate fees for industrial workers will enhance sustainable industrial development in the Kingdom.
Terming it an extension of continuous support to the industrial sector under its Vision 2030, the minister pointed out that it will contribute to enhancing the global competitiveness of Saudi industry and increasing the reach and distribution of non-oil exports in various global markets.
This initiative is a strategic component of Riyadh’s ambitious plan to diversify its economy away from oil dependency.
Further elaborating on the expected benefits, Alkhorayef emphasised the decision’s potential to attract higher-quality investments and lower operational expenditures for factories.
It will enable the industries 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.
The policy shift holds considerable importance for major labour-exporting nations, including Pakistan. Saudi Arabia remained Pakistan’s largest source of remittances, with overseas Pakistanis sending $753 million in November, followed by the United Arab Emirates at $675 million.
Reports indicate that between 2020 and 2024, Pakistan sent approximately 1.88 million workers to the Kingdom, representing a 21 per cent rise from the 1.56 million dispatched between 2015 and 2019.
In the wake of a defence agreement signed in September, Islamabad is now actively seeking to double its annual manpower exports to Saudi Arabia to one million workers.
While Pakistani labour has historically been concentrated in construction, healthcare, and hospitality, the federal government is pursuing efforts to diversify its exported workforce into additional technical and industrial sectors.
