Saudi Arabia will set aside over $3 billion for companies in the kingdom who have struggled to pay expat fees in 2017 and 2018, according to the labour minister.
The private sector stimulus plan, approved by King Salman, will also waive the increases in fees for companies that haven’t be able to pay.
In a tweet on Friday, Labour Minister Ahmed bin Suleiman al-Rajhi said, “This initiative will support private sector companies, help them overcome the obstacles and achieve their goals and encourage them to expand employment of Saudi citizens.”
أرفع الشكر والتقدير لمقام خادم الحرمين الشريفين وولي العهد-يحفظهما الله-، على الموافقة الكريمة على مبادرة الفاتورة المجمعة ضمن خطة تحفيز القطاع الخاص، دعماً للمنشآت وتذليلاً لما قد يعترضها من معوّقات ويسهّل تحقيق أهدافها؛ وتحفيزها للنمو والتوسع في توظيف المواطنين والمواطنات..— أحمد سليمان الراجحي (@Ahmed_S_Alrajhi) February 8, 2019
Reuters reported that the government has approved $3.1 billion (SAR11.5bn) for reimbursements under the scheme, which only applies to companies that have had a higher or equal number of Saudi employees than expats. Companies can avail of the scheme if they recruit more Saudis, according to the decree.
In December, Saudi Arabia announced said it would reveal details this month of a study into the controversial levy on expatriate workers, with a view to reconciling its fiscal needs with the private sector’s ability to hire and grow.
The fees were introduced in 2017 as part of a drive to increase non-oil government revenue - a key goal of Crown Prince Mohammed bin Salman’s economic transformation plan - but have drawn fire from business owners in a country accustomed to cheap foreign labour.
They’ve contributed to the exit of hundreds of thousands of foreigners from the kingdom, hitting the already-struggling economy without making much of a dent in Saudi unemployment.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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