While attending the council session, he demanded that the expat fee has become an obstacle for the growth of small and medium enterprises (SMEs).

Al-Qahtani underlined that there is a need to review the fee for expatriate workers in Small & Medium Enterprises in a way which will reduce Small & Medium Enterprises operational costs and ensuring their growth and sustainability in the kingdom.

Demand for Expat fees to be made as per the Income

most of SMEs (Small & Medium Enterprise) operating in the kingdom are struggling for survival due to the imposition of heavy burden of financial liabilities, including the expatriate fee, coupled with administrative challenges.

The Economic and Energy Committee at the Shoura Council had called on the competent authorities earlier to work on developing an effective methodology to calculate the cost of fee for expatriate workers in SMEs.

On her part, Raeda Abunayan, another member, suggested that the government fee recovery initiative should cover all small and micro enterprises for a period of five years until they overcome the effects of coronavirus pandemic.

It is noteworthy that Saudi started charging companies a monthly fee of SR400 for each expatriate worker they hire, effective from January 2018. Firms that employ an equal or greater number of Saudis than expatriates need to pay SR300.

The monthly fee increased to SR500 to 600 per worker in 2019 and to SR700-800 per worker in 2020. The fee needs to be paid at the time of extending the work permit.

This is among a number of incentives approved by King Salman during COVID times on individuals, private sector establishments, and investors in the Hajj and Umrah sector.

Six Months Expat Fees, License Fees Exemption for Expats in Hajj & Umrah Sector

The List of initiatives includes:

1. Exemption of the yearly fee for municipal commercial activity licenses for accommodation facilities for a period of 1 year in the cities of Makkah & Madina

2. Exemption of the fees for expats working in these firms for a period of 6 months.

3. Renewal of the Ministry of Tourism licenses for a period of 1 year for free, without any charge for accommodation facilities in Makkah & Madina, which can be extended.

4. Postponement of the fee collection for the renewal of iqama for these expatriates who are working in this sector for a period of 6 months, with a condition that the amounts are to be paid in installments within a year.

5. Extension of the validity of licenses (istimara) of buses operated by establishments to transport pilgrims without charge for a period of one year.

6. Postponement of the collection of customs duties for new buses for the Hajj season of 2021 for a period of three months and paying them in installments over a period of four months starting from the due date.

These initiatives come as an extension of the Kingdom’s efforts to mitigate the financial and economic impact of the coronavirus pandemic on the sectors operating in the field of Hajj and Umrah and economic activities most affected by the repercussions of the pandemic.

It is noteworthy that the Saudi government launched more than 150 initiatives, with allocations exceeding SR180 billion, aimed to reduce the repercussions of the pandemic and mitigate its effects on individuals, the private sector, and investors.

Expat Fees Retention for 2020

This discussion came out when the Shoura Council informed about the negativity of Dependent Fees on Expatriate & their dependent lives and also on foreign workers on various social and economic realms.

Council also urged the Ministry to raise minimum salary wages / salary scale to attract more Saudis to the employment sector.

Many other additional activities are carried out by the Council for economic development, enhancing foreign trade exchange.

We all hope that Council should be able to bring out some positivity out of this study so that Expatriate don’t have to pay Extra dependent Fees this year for 2020.

This decision was made by the Saudi government to boost investors towards Industrial sector and to give short-term solution to factory workers Jobs to achieve Vision 2030 goal.

The Ministry of Industry and Mineral Resources has been directed to lay down the required criteria for this, in coordination with the ministries of finance and labor and social development.

More than 600,000 Expats are working in the manufacturing sector out of which 95% of them are men and 5% are women employees.

Expats who are paying more than 800 SR  per month are around 444,946 for 5 years which is imposing a total value SR 21.36 billion

Expats who are paying more than 700 SR  per month are around 200,946 for 5 years which is imposing a total value SR 30 billion

Non-Saudi workers in the downstream industries sector represent 9.68 percent of the total work force in the industrial sector.

The total number of workers, excluding domestic workers, accounts for 6.66 million Saudis and expatriates in the Kingdom.

This decision was issued so that expatriate fees in industrial installations, holding industrial licenses, for a period of five years.

Based on the above decision the Ministry of Industry and Mineral Resources will lay down the required criteria in co-ordination with the Ministry of Labor and Social development.

This decision will definitely boost industrial investments in the kingdom wherein the Expats working in factories will no have to pay Expatriate Fees as the State will pay on behalf of them.

As per Kingdoms Vision 2030 this will also give a short-term solution for investments, Jobs and Goals.

Hoping to this change for All Expats workers so that Expats families and again come back to Saudi as used to earlier.

If a Company is having more than 50% Expatriates than Saudi Nationals; The Expat Levy will be SR 400 per month per worker from January 2018.

If a Company is having equal number of Expatriates & Saudi nationasl; The Expat Levy will be SR 300 per month per worker from January 2018.

If a Company is having Less Expatriates compared to Saudi nationals; The Expat Levy will be SR 200 per month per worker from July 2018 and will gradually increase till 2020.

The main concern for all the expatriates is Feed will be levied on all the dependents living with an Expatriate. Even dependents who are below 18 years will also be levied.

Most of the Banks such as Al Rajhi Bank, AlAhli Bank, NCB Bank, SABB and Riyadh Bank in the Kingdom of Saudi Arabia have already updated their SADAD system for the Iqama Renewals.

As per the latest news from sources, Fees will not be for First Wife, Sons and Daughters who are under 18 years of age. We are still waiting to hear Official statement or News from Saudi Goverment on this.

Few of the companies have already issued notice to their employess regarding the Expat Fees and how much it will be levied and on whom it will be levied.

Its now very difficult for Expatriates living in Saudi Arabia that they need to pay for every dependent and even Company needs to pay Fees for keeping more number of Expats (Wherein Expats outnumbers Saudi Nationals)

That means 400 SAR in 2020 for every dependent. Yes, don’t get shocked, its 400 Saudi Riyals for every dependent and also there is change to increase after 2020.

Its now very difficult for Expatriates living in Saudi Arabia that they need to pay for every dependent and even Company needs to pay Fees for keeping more number of Expats (Wherein Expats outnumbers Saudi Nationals)

For Companies where expat workers outnumbers Saudis

2018: 400 SAR per worker per month

2019: 600 SAR per worker per month

2020: 800 SAR per worker per month

For Companies where expat workers equals Saudis

2018: 300 SAR per worker per month

2019: 500 SAR per worker per month

2020: 700 SAR per worker per month

Fees to be paid by Expats for dependents

From July 2017: 100 SAR per dependent per month

2018: 200 SAR per dependent per month

2019: 300 SAR per dependent per month

2020: 40 SAR per dependent per month