Saudi Arabia abolishes iqama fees for expatriate workers in licensed industries

• The step aims to strengthen sustainable industrial development: Minister.
• It says it aligns with Vision 2030, enhances global competitiveness.
• Policy to attract investment, reduce factory costs, enhance expansion.

In a move to boost its industrial sector, Saudi Arabia’s cabinet has given the go-ahead to scrapping expatriate workers’ fees, commonly known as iqama or work permits, at licensed industrial facilities.

The decision was taken at a Cabinet meeting chaired by Saudi Crown Prince and Prime Minister Mohammed bin Salman, following a recommendation by the Council for Economic and Development Affairs (CEDA). Saudi Gazette was mentioned.

Industry and Mineral Resources Minister Bandar Alkhorayef said the cabinet’s decision to withdraw the financial levy on expatriate wages for industrial workers will boost sustainable industrial development in the Kingdom.

Describing it as an extension of ongoing support to the industrial sector under Vision 2030, the minister pointed out that it will help strengthen the global competitiveness of Saudi industry and increase the reach and distribution of non-oil exports to various global markets.

As part of its ambitious vision for 2030, Riyadh aims to diversify its economy independently of the oil trade.

The minister pointed out that the new move will attract more quality investments besides reducing operational costs in factories.

It will enable industries to expand, grow and increase their production and accelerate the adoption of modern business models by industrial facilities, such as automation solutions, artificial intelligence and advanced manufacturing technologies, he added.

Saudi Arabia remained Pakistan’s biggest source of remittances, with overseas Pakistanis sending $753 million in November, followed by the United Arab Emirates with $675 million.

According to Saudi media, Pakistan sent 1.88 million workers to the Kingdom between 2020 and 2024, a 21 percent increase from 1.56 million during 2015-19.

It has also emerged that Islamabad is seeking to double annual manpower exports to Saudi Arabia to one million workers, following the signing of a major defense pact in September.

Pakistan’s labor exports have traditionally focused on construction, allied trades, healthcare and hospitality, but the federal government is now aiming to diversify into additional sectors.