Saudi Arabia 'reviewing' expat worker fees

Saudi Arabia 'reviewing' expat fees amid highest unemployment in a decade
2 min read
10 December, 2018
Sources have reported that Saudi Arabia is reviewing its unpopular policy of imposing fees on expat workers.
Expat worker fees were introduced in 2016 as part of Crown Prince Mohammed's reforms [Getty]

Saudi Arabia is reportedly reviewing its policy of imposing fees on expatriate workers following an exodus of foreign workers amid rising living costs, Bloomberg reported on Sunday.

The system will likely be modified rather than entirely repealed, sources familiar with the matter said, with a final decision on the matter expected within weeks.

In an emailed response to a query by Bloomberg, however, Saudi Arabia's minister of media, Awwad AlAwwad, denied that a review of the fee is taking place.

Expatriate fees were introduced in 2016 as part of Crown Prince Mohammed bin Salman's ambitious drive to overhaul Saudi Arabia's economy. The fees, however, have proven unpopular among business owners who have been hit by the exodus of hundreds of thousands of foreign workers who had provided cheap labour.

Since 2017, expat workers have been required to pay a fee for each dependent member of the family. The fee, which started at 100 riyals ($27) a month per dependent, is scheduled to increase by 100 riyals each year. Businesses that employ foreign workers are also subject to fees as part of the country's 'Saudisation' drive to fill jobs with locals.

According to Bloomberg, despite the mass departure of foreign workers, Saudi unemployment has reached its highest level in a decade at 12.9 percent.

Saudi businesses have complained that locals are not interested in "low-status" jobs, "creating a real problem for the economy", according to a report by Business Insider published earlier this year.