Industrial sector to save SAR 4-5B annually from expat fee waiver: Alkhorayef

Bandar Alkhorayef, Minister of Industry and Mineral Resources

Minister of Industry and Mineral Resources Bandar Alkhorayef said that extending waiver for the financial compensation required for expat workers in the industrial sector will save about SAR 4 to 5 billion annually for the establishments.

Alkhorayef added in an interview with Al Arabiya that this value is huge and keeping it within the sector will stimulate more investments and make the sector more competitive.

The situation is being dealt with so that industrial facilities will not be affected during the coming year.

He assured the government’s keenness to support the existence of policies that ensure the continuity of the sector’s competitiveness.

Alkhorayef indicated that the possibility of further extensions will be decided on at the appropriate time.

The industrial sector is still witnessing a continued influx of investments, especially from foreign investors. Work is being done with many foreign companies to clarify the available opportunities in the Kingdom.

However, investments are still below target and in the range of 6% to 7%.

Alkhorayef expected a large turnout from global firms from diverse sectors, including automobiles, medicines, renewable energy, food, poultry, and others during the coming period.

According to data available on Argaam, the Saudi Cabinet, chaired by Crown Prince Mohammed bin Salman, approved on Aug. 14, an extension to the state's coverage of the financial compensation required for expat workers in industrial establishments until Dec. 31, 2025.

In September 2019, the Cabinet approved the state's coverage of financial compensation for expat workers in industrial establishments, for five years starting from Oct. 1, 2019.