Saudi Arabia Mulls Changes to Expatriate Dependent Fees

Skilled expats in Saudi Arabia might soon see a change in how much they pay for their dependents. This comes as the government seeks to make the country a more attractive destination for talented foreign workers.

Minister of Finance Mohammed Al-Jadaan, in a recent interview, unveiled potential revisions to the dependent fees imposed on skilled expatriates in Saudi Arabia.

Saudi Arabia – Expatriate Dependent Fees

Since 2020, expat workers in Saudi Arabia have been obligated to pay SR400 ($100.6) for each dependent, a policy aimed at managing the financial impact of foreign workers on the state’s resources.

It is worth noting that the dependent fee, initially set at SR100 in 2017 and subsequently increased annually, has been subject to scrutiny due to its economic implications.

Re-evaluation of Fees

Minister Al-Jadaan revealed that a comprehensive study is currently underway to reassess the fee structure imposed on expatriates. This study is part of Saudi Arabia’s broader strategy to attract and retain talented individuals, recognizing the importance of their social stability in fostering productivity and meaningful contributions to the economy.

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Rationale Behind the Fee and Potential Changes

The initial justification for the fee was based on the economic impact of dependents utilizing subsidized government services. However, Minister Al-Jadaan acknowledged that recent economic changes, including subsidy reductions and targeted social programs, have altered the equation.

The Minister emphasized that the government is reassessing the fee structure in light of potentially increased revenue generated from expats.

He highlighted the importance of social stability for attracting and retaining skilled talent, ultimately leading to greater productivity and economic contributions.

Diversification and Economic Progress

Minister Al-Jadaan also highlighted Saudi Arabia’s strides in economic diversification and revenue generation beyond oil. Noting a significant increase in non-oil revenues and the expansion of sectors contributing to GDP, he expressed optimism about the kingdom’s economic trajectory.

Conclusion

Overall, this news signals a potential shift in Saudi Arabia’s approach to attracting skilled expats. The reevaluation of dependent fees, coupled with broader economic diversification efforts, suggests a more welcoming environment for talented foreign workers.