Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar AlKhorayef, announced a significant surge in industrial investments. Over 8,000 industrial establishments benefited from government financial support for expat worker fees. This support was provided between 2019 and the end of 2023.
Investment Growth Fueled by Government Support
Since the government began covering these fees, the total value of investments in the industrial sector increased by 55%. AlKhorayef’s statement followed the Cabinet’s decision to extend the government’s coverage of expat worker fees until the end of 2025.
He revealed that the industrial sector has seen significant growth since 2019, when the government first assumed these costs. By April 2024, the number of industrial establishments had grown from 8,822 to 11,868. Additionally, employment in the sector increased by 57%, while the Saudization rate rose to 32%.
Achievements in the Industrial Sector
The minister emphasized that these achievements would not have been possible without strong leadership support. The total value of investments in the industrial sector rose from 992 billion SAR in 2019 to over 1.542 trillion SAR by the end of 2023. Non-oil exports also saw a notable increase of 12% during this period. More than 8,000 establishments benefited from the government’s financial coverage from 2019 to the end of 2023.
Future Growth Prospects
AlKhorayef noted that extending the fee coverage until 2025 will continue to fuel industrial growth. This extension will create more job opportunities, develop local capabilities, and attract further investments. It will also help industrial establishments adopt modern work models, including automation and Fourth Industrial Revolution technologies.
The minister affirmed that the Ministry is committed to ensuring the sector’s growth in the coming years. The Ministry will collaborate with relevant stakeholders to enhance the global competitiveness of national industries. This collaboration aims to foster an environment conducive to investment and innovation. The continued support underscores the industrial sector’s role as a key pillar of Saudi Arabia’s national economy.
Government Support
The Saudi Cabinet initially decided on September 24, 2019, that the government would cover expat worker fees for licensed industrial establishments. This support began on October 1, 2019, for five years. Saudi Arabia started implementing the “expat worker fee” on dependents of foreign workers in mid-2017, charging 100 SAR per dependent each month. In 2018, the fees were applied to the number of expat workers exceeding the number of Saudi workers in each sector. The fees have gradually increased to create more jobs for Saudis in sectors with a high concentration of expat workers.
