The Saudi Cabinet, chaired by Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, approved on Wednesday the cancellation of the expat levy on foreign workers in licensed industrial establishments.
The decision is based on the recommendation of the Council of Economic and Development Affairs.
It reflects the continued support and empowerment the industrial sector receives from the Kingdom’s leadership.
It also underscores the Crown Prince’s commitment to enabling national factories, strengthening their sustainability, and enhancing their global competitiveness.
The step aligns with the Kingdom’s ambitious vision to build a competitive and resilient industrial economy, recognizing industry as a cornerstone of national economic diversification under Saudi Vision 2030.
Minister of Industry and Mineral Resources Bandar Alkhorayef expressed his sincere gratitude and appreciation to Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and to Crown Prince Mohammed on the Cabinet’s decisions.
The move reflects the continued support and empowerment the industrial sector receives from the Crown Prince, he added.
He noted that the move will boost the global competitiveness of the Saudi industry and further increase the reach and presence of non-oil exports in international markets.
Alkhorayef stressed that the exemption of the expat levy over the past six years - through the first and second exemption periods from October 1, 2019, to December 31, 2025 - played a critical role in driving qualitative growth in the industrial sector and expanding the Kingdom’s industrial base.
Between 2019 and the end of 2024, the sector achieved significant milestones: the number of industrial facilities increased from 8,822 factories to more than 12,000; total industrial investments rose by 35%, from SAR908 billion to SAR1.22 trillion; non-oil exports grew by 16%, rising from SAR187 billion to SAR217 billion; employment grew by 74%, from 488,000 workers to 847,000; localization increased from 29% to 31%; and industrial GDP rose by 56%, from SAR322 billion to more than SAR501 billion.
Alkhorayef said that these achievements would not have been possible without the unwavering support provided to the industry and mineral resources ecosystem by the Kingdom’s leadership.
The minister added that the Cabinet’s decision to cancel the expat levy for the licensed industrial establishments will further strengthen sustainable industrial development in the Kingdom, bolster national industrial capabilities, and attract more high-quality investments, especially given the incentives and enablers offered by the industrial ecosystem.
The decision will also reduce operational costs for factories, helping them expand, grow, and increase their output, and accelerate the adoption of modern operating models such as automation, artificial intelligence, and advanced manufacturing technologies. This, he said, will boost the sector’s efficiency and enhance its ability to compete globally.
Alkhorayef reaffirmed the ministry’s commitment to supporting the continued growth of the industrial sector in the coming period through close cooperation with all relevant entities, empowering the private sector, and providing an investment-friendly industrial environment that fosters innovation and technology.
These efforts reflect the Kingdom’s commitment to its vision of becoming a global industrial powerhouse by enabling advanced industries, attracting international investment, offering 800 industrial investment opportunities worth SAR1 trillion, and tripling industrial GDP to SAR895 billion by 2035 and reinforcing industry as a central pillar of national economic diversification, he said.
