RIYADH – Boost for industrial sector, as Saudi Cabinet, chaired by Crown Prince Mohammed bin Salman, approved removal of residency (Iqama) fees for foreign workers in the industrial sector.
According to Saudi media reports, the decision was made after a recommendation from Council for Economic and Development Affairs, showing government’s ongoing efforts to support economic growth and development.
The abolition of these fees is expected to reduce the financial burden on businesses and encourage greater participation of foreign skilled labor in Saudi Arabia’s industrial expansion initiatives.
The move aligns with the kingdom’s broader strategy to enhance investment in key sectors, streamline operational costs, and strengthen the overall economic landscape.
In Saudi Arabia, Iqama fees involve several components beyond the basic residence permit, which varies upto SAR 650 annually, typically paid by the employer. Employers also pay the Work Permit Fee (Maktab Amal), around SAR 800 per foreign worker per month, with exemptions for small businesses and some domestic workers.
Expatriates sponsoring dependents pay an additional SAR 400 per month per family member. Domestic workers have similar Iqama fees, mandatory health insurance, and limited exemptions from the Maktab Amal levy, with costs borne by their employer. Premium Residency offers long-term or permanent residency without a Saudi sponsor but carries much higher fees, ranging from SAR 100,000 annually for renewable residency to a one-time SAR 800,000 for permanent status, plus additional fees depending on the category.
Other mandatory costs include health insurance, medical exams, biometric registration, traffic fines, and professional membership fees where applicable. Quarterly payment options provide flexibility, and total costs can vary, especially for employees with dependents, so verifying fees with official sources or employers is advised.
