The Kingdom has announced a major financial incentive that is set to revolutionize the manufacturing sector. The Saudi Industrial Expat Fee Waiver has been officially approved by the Council of Ministers, revoking the fees previously imposed on expatriate workers in licensed industrial establishments.

For many international investors and business owners planning a Business Setup in Saudi Arabia, understanding the local terminology is crucial. You might be asking, what exactly is this fee, and why does its cancellation matter? This article breaks down the Saudi Industrial Expat Fee Waiver and explains the “levy fee” in simple terms.

What is the Expat Levy Fee?

Before diving into the waiver, it is important to understand what the “levy fee” is. In Saudi Arabia, this is often referred to as the “financial consideration” or “expat levy.”

Traditionally, companies are required to pay a monthly fee for every non-Saudi employee they hire. This fee was introduced to encourage the employment of Saudi nationals. For businesses with a large workforce, such as factories, this levy can amount to a significant operational cost. However, with the new Saudi Industrial Expat Fee Waiver, the government is effectively removing this burden for qualifying industrial companies to support the goals of Vision 2030.

Details of the Decision

The decision to revoke these fees was chaired by Crown Prince and Prime Minister Mohammed bin Salman. It specifically targets the industrial sector to enhance its competitiveness. By implementing the Saudi Industrial Expat Fee Waiver, the Kingdom aims to:

• Reduce operating costs for manufacturers.
• Attract more foreign direct investment (FDI) into the industrial sector.
• Stabilize the prices of locally manufactured goods.

This move aligns perfectly with the National Industrial Strategy, making it easier for foreign investors to enter the market.

Who Qualifies for the Expat Fee Waiver?

Not every company will benefit from this change immediately. The Saudi Industrial Expat Fee Waiver applies specifically to “industrial establishments licensed under an industrial license.”

This means that to qualify, your business must hold a valid industrial license from the Ministry of Industry and Mineral Resources (MIM). If you are currently operating under a general trading license, you may need to restructure or apply for the correct licensing to take advantage of these savings.

How Click International Can Help

Navigating government exemptions and licensing requirements can be complex. At Click International, we specialize in helping investors secure the right licenses, including Industrial Licenses, to ensure you qualify for such benefits.

Whether you need assistance with government portal registrations like Qiwa and Muqeem, or need advice on restructuring your company to benefit from the Saudi Industrial Expat Fee Waiver, our team is ready to assist.

For more official details on this decision, you can read the report on the Saudi Gazette.

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