Saudi Arabia has taken a major step to support its industrial sector. The Kingdom has removed fees that companies paid for expatriate workers in licensed industrial facilities. The Council of Ministers approved the decision under Crown Prince and Prime Minister Mohammed bin Salman Al Saud. The move followed a recommendation from the Council of Economic and Development Affairs.
The decision aims to reduce costs for industrial companies. The firms previously paid regular fees for each expatriate worker. These charges increased operating expenses, especially for factories that depend on skilled foreign labor. The removal of the expat industrial fee now gives companies more financial room to grow and plan long-term.
Saudi officials say the step supports national factories and strengthens the industrial base. The policy also aligns with the goals of Vision 2030. The national strategy focuses on building a strong and diverse economy with reduced dependence on oil revenues.
The government believes lower costs will help factories invest more in technology and production. With extra savings, companies can spend on new machines, make more goods, and improve what they sell. In the long run, this helps factories grow and stay competitive worldwide.
The timing of the decision also matches strong investment growth. Saudi Arabia issued 6,986 investment licenses in Q3 of 2025. This marked an 83% rise from the same period during the previous year. The data shows rising confidence in the Saudi market.
Construction led the growth in licenses, followed by wholesale and retail trade, and manufacturing. These three sectors accounted for a large share of total licenses. Food services, transport, and information services also experienced growth.
Officials say the increase in investment is from stable rules and business-friendly reforms. Saudi Arabia is strengthening its business rules and making the environment more investor-friendly. Removing expat industrial fee gives companies another reason to set up and expand in the Kingdom.
The move also makes it easier to hire skilled professionals from abroad. This stability supports knowledge transfer and skills development inside factories. Authorities say this balance helps industries grow while preparing local talent for future roles.
The government views this step as part of a broader effort to build a stable and strong industrial economy. Lower costs and better investment conditions are expected to help Saudi Arabia grow as a major center for manufacturing and business.
The removal of the expat industrial fee sends a clear signal. Saudi Arabia wants to grow its industries and stay competitive. The move supports Vision 2030 and shows the Kingdom’s commitment to long-term industrial development.
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