Saudi Arabia abolishes iqama fees to boost industrial growth

RIYADH (Web Desk) - Saudi Arabia has taken a significant step to boost its industrial sector by approving the abolition of expatriate worker fees, commonly known as iqama or work permit charges, for licensed industrial establishments.

The decision aims to ease financial pressures on industries and encourage faster industrial growth across the Kingdom.

The move 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 removal of expatriate fees would support sustainable industrial development and strengthen the Kingdom’s manufacturing base.

He described the measure as part of the government’s continued support for the industrial sector under Vision 2030, Saudi Arabia’s long-term economic transformation plan.

The minister noted that the decision would help enhance the global competitiveness of Saudi industries, lower operating costs for factories, and attract high-quality local and foreign investments.

Saudi Arabia has revoked fees imposed on expatriate workers in industrial establishments licensed under an industrial licensehttps://t.co/IhoCc3UFXd

— Saudi Gazette (@Saudi_Gazette) December 17, 2025

He added that industries would be better positioned to expand production capacity and adopt advanced manufacturing technologies, including automation, artificial intelligence, and modern industrial solutions.

Vision 2030 seeks to diversify Saudi Arabia’s economy by reducing reliance on oil and expanding non-oil exports in international markets.

The latest reform is expected to play a key role in achieving these objectives.

The development also holds implications for labour-sending countries such as Pakistan.

Saudi Arabia remains Pakistan’s largest source of remittances, with overseas Pakistanis sending $753 million in November alone.

Between 2020 and 2024, around 1.88 million Pakistani workers were employed in the Kingdom.

Islamabad is reportedly seeking to double its annual manpower exports to Saudi Arabia to one million workers, while also expanding labour exports beyond traditional sectors such as construction, healthcare, and hospitality.