A significant decision by the Saudi Arabian government is set to provide major relief to foreign workers in the industrial sector. This move, led by the Crown Prince, will not only strengthen the industry but could also prove beneficial for millions of migrant workers employed there, particularly those from India.
There’s great news for migrant workers from Saudi Arabia. In a meeting of the Saudi cabinet chaired by Crown Prince Mohammed bin Salman, a decision was made to abolish the financial fees (taxes) imposed on foreign workers employed in the industrial sector.
This move will not only benefit the Saudi industry, but is also expected to directly benefit millions of foreign workers, including approximately 300,000 Indians working there.
Which sector will receive relief?
This exemption will apply to industrial establishments registered under an industrial license in Saudi Arabia. This means that foreign employees working in factories, manufacturing units, and industrial projects will no longer have to pay the additional fees imposed by the government. This will reduce costs for companies and indirectly lessen the burden on workers.
A major step towards Vision 2030.
The Saudi government says this decision is part of Crown Prince Mohammed bin Salman’s vision to strengthen the industrial sector. The industrial sector is considered a key pillar of Saudi Vision 2030, which aims to reduce dependence on oil and promote a non-oil economy. Removing taxes on foreign workers will increase the global competitiveness of Saudi industries and boost exports.
Small and medium-sized companies will benefit particularly.
This decision will primarily benefit small and medium-sized enterprises (SMEs), which faced significant financial pressure from the fees associated with employing foreign workers. The removal of these taxes will help them remain competitive in the long term, adopt new technologies, and implement modern methods such as automation. The Saudi government is already supporting these companies through programs like “Factories of the Future.”
The industry experienced a major boom from 2019 to 2024.
According to government figures, the Saudi industrial sector experienced rapid growth between 2019 and 2024. During this period, the number of industrial units increased from 8,822 to over 12,000. Industrial investment rose by 35% to reach 1.22 trillion riyals. Non-oil exports increased by 16%, and the number of jobs grew by 74%.
A big goal by 2035.
Industry and Mineral Resources Minister Bandar bin Ibrahim Al-Khorayef expressed his gratitude to the leadership for this decision. He stated that it will reduce costs, increase productivity, and bring Saudi Arabia closer to its goal of increasing industrial GDP to 895 billion riyals by 2035.