Saudi Arabia has announced a major policy change aimed at strengthening its industrial sector by abolishing iqama (work permit) fees for expatriate workers employed in licensed industrial establishments.
The decision was approved during a meeting of the Council of Ministers, chaired by Crown Prince and Prime Minister Mohammed bin Salman, following recommendations from the Council of Economic and Development Affairs (CEDA), according to Saudi media reports.
Minister of Industry and Mineral Resources Bandar Alkhorayef said the move would support sustainable industrial development across the Kingdom. He explained that removing the financial burden of expatriate worker fees will lower operational costs for factories and make Saudi Arabia’s industrial sector more competitive.
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The minister described the decision as a continuation of the government’s strong backing of industry under Vision 2030, Saudi Arabia’s long-term plan to diversify its economy beyond oil. He added that the policy would help improve the global competitiveness of Saudi industries and expand the export of non-oil products to international markets.
By reducing costs for manufacturers, the abolition of iqama fees is also expected to attract high-quality local and foreign investments, encourage industrial expansion, and create a more business-friendly environment.
Saudi Arabia’s Vision 2030 focuses on economic diversification, job creation, and private-sector growth. Measures like this reflect Riyadh’s commitment to building a strong, modern industrial base while reducing dependence on oil revenues.
Overall, the decision is being seen as a positive step for both employers and expatriate workers, supporting long-term industrial growth and reinforcing Saudi Arabia’s position as a competitive manufacturing hub in the region.
