Saudi Arabia has announced major relief for migrant workers by removing financial levies imposed on foreign employees in the industrial sector. The decision was taken during a cabinet meeting chaired by Crown Prince Mohammed bin Salman and is expected to directly benefit millions of expatriates, including nearly three lakh Indian workers employed in the kingdom.

The move will ease the financial burden on both industries and foreign workers, while also strengthening Saudi Arabia’s manufacturing and industrial ecosystem.

Which workers will get the benefit?
The exemption applies to industrial establishments registered under a valid industrial license in Saudi Arabia. This includes factories, manufacturing units, and large industrial projects. Foreign workers employed in these sectors will no longer attract additional government-imposed fees, reducing operational costs for companies and indirectly improving job security and benefits for workers.

Aligned with Vision 2030
The Saudi government said the decision is a key step under Vision 2030, the ambitious plan to diversify the economy and reduce dependence on oil. The industrial sector is a core pillar of this vision, and removing levies on foreign workers is expected to enhance global competitiveness, boost exports, and attract fresh investments.

Major relief for small and medium enterprises
Small and medium-sized enterprises (SMEs) are expected to gain the most from this decision. Earlier, these companies faced heavy financial pressure due to levies on foreign manpower. With this cost removed, SMEs will be better positioned to achieve long-term stability, invest in new technologies, adopt automation, and modernise operations. The government already supports these firms through initiatives such as the Factories of the Future programme.

Rapid growth in Saudi industry
Official data highlights strong growth in Saudi Arabia’s industrial sector between 2019 and 2024. During this period:
– The number of industrial units rose from 8,822 to over 12,000
– Industrial investment increased by 35% to 1.22 trillion riyals
– Non-oil exports grew by 16%
– Employment in the sector surged by 74%

Target set for 2035
Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar bin Ibrahim Al-Khareef, welcomed the decision and thanked the leadership for the support. He said the move would lower costs, improve productivity, and help the country move closer to its goal of achieving 895 billion riyals in industrial GDP by 2035.