Overview
- The Cabinet approved the change on December 17 on a Council of Economic and Development Affairs recommendation in a session chaired by Crown Prince Mohammed bin Salman.
- The cancellation applies to expatriate workers employed by industrial establishments holding an official industrial license.
- Industry minister Bandar Alkhorayef said the move supports sustainable industrial development, strengthens competitiveness, and broadens the reach of non-oil exports.
- Officials expect lower operating costs for factories, higher-quality investment inflows, and faster adoption of automation, artificial intelligence, and advanced manufacturing.
- The decision follows multi‑year exemptions that coincided with sector gains through 2024, including more than 12,000 factories and SR1.22 trillion ($325 billion) in industrial investment, with coverage noting potential effects for labor suppliers such as Pakistan.