Expat levy to add SR60bn economic burden on Saudis

January 17, 2013

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Jeddah, Jan 17: Calls are mounting for the government to repeal the proposed levy for businesses not meeting Saudization requirements. Analysts have said that implementing the measure will impose an additional economic burden of some SR60 billion annually on Saudi families across the country.

Employers are now forced to pay SR2,400 a year for each foreign worker that pushes the work force at a particular company over the 50 percent target mandated by Saudization laws.

Talal Samarkandi, head of the Engineering Firm Committee at the Jeddah Chamber of Commerce and Industry, said his panel would come out with a detailed study that would convince authorities of the need to abolish the levy.

The move comes after Crown Prince Salman, deputy premier and minister of defense, instructed the Council of Saudi Chambers to submit a report on the levy’s impact on both individuals and the national economy.

Many companies have delayed renewing their foreign employees’ iqamas because of the newly imposed fees. Employers now must pay annually SR 2,600 in labor fees for each foreigner over the 50 percent mandate instead of SR100 for all workers’ renewed iqamas, which was the case previously.

Samarkandi said the government would be able to mobilize SR19 billion annually from the new fees. “As a result of the additional expenditures, traders and businesses will increase the prices of their goods and services by three to five times and consumers will be the main victims.”

Many companies, especially contractors and labor suppliers have already increased their charges. Samarkandi estimated the increase in prices of goods after the imposition of the levy at 10 to 20 percent.

There are about 10 million expatriate workers in the Kingdom including those who have overstayed their visas and other undocumented workers. About 3 million expatriates work as house servants while 7 million work in the service and industrial sector.

The new levy would increase the expenditure of businesses by SR20 billion annually. “To meet this expenditure, traders will increase prices of goods and services by three times and the cost will reach SR60 billion,” Samarkandi explained.

“If we distribute this amount among 2.4 Saudi families with seven members in each family, the cost per family comes to SR10,000 every year or SR1,800 per month,” he pointed out.

“This has become a new cost of living increase for Saudis, and the Ministry of Labor has not taken this into consideration when imposing the levy on private companies,” he pointed out.

He said the ministry was just thinking of how to manage the fund required for paying unemployment allowance without checking its negative implications.

Muhiyuddin Al-Hekami, assistant secretary-general of JCCI, said the organization would calculate the damage caused by the levy on various sectors. “It is our duty to protect the interests of businesses in the city.”

Al-Hekami said the chamber had received complaints against the levy from traders, businessmen and industrialists. “We’ll present a detailed report to higher authorities to take appropriate action,” he said.

Nasser Al-Zahem, head of the Health Services Committee, said the Labor Ministry has to clarify whether the new fees are an expat tax. The health sector, which does not receive an adequate number of qualified Saudis, has been suffering big losses as a result of the new decisions, he pointed out. The levy, he said, would force many small companies to leave the market. “They should consider that the private sector is part and parcel of the state,” he added.

Crown Prince Salman called for studying the issue following a meeting with a business delegation led by Abdullah Al-Mubti, president of the Council of Saudi Chambers.

During that meeting, the CSC delegation explained the negative aspects of the Labor Ministry's decision. Prince Salman emphasized the need to protect national interests. The delegation vowed to employ more Saudis in private companies.

In a previous statement, Labor Minister Adel Fakeih said there was no plan to cancel the levy, which was imposed to bridge the gap between the cost of employing expatriates and Saudis, raising the cost of foreign labor. “This is not a ministry decision, it’s a Cabinet decision,” the minister said.

Saleh Hefni, CEO of Halwani Bros Company, said the levy would contribute to increasing inflation rather than nationalizing jobs. “This tax proposal, I think, will not stop the private sector’s dependence on expatriate workers, rather they will try to cover the cost of expatriate workers by increasing the prices of the products they produce and sell in the market,” he added.

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News Network
November 28,2025

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Several Syrians were killed and more than two dozen others injured in Israeli strikes on the outskirts of Damascus, amid intensified incursions by the occupying regime since the fall of former president Bashar al-Assad and the rise of Hayat Tahrir al-Sham (HTS) rule.

Syrian state TV reported that the casualties occurred during an overnight Israeli assault involving helicopters and drones on the town of Beit Jinn in the Damascus countryside. The attack followed an Israeli military unit’s entry into the town, where they were surrounded by local residents, leading to gunfire and direct confrontations.

According to the report, “The occupation army’s helicopters and artillery shelled Beit Jinn, located at the foothills of Mount Hermon, resulting in 13 martyrs and 25 injured civilians.” The broadcaster did not specify the full extent of damage.

Al-Ikhbariyah Syria confirmed that the shelling coincided with Israeli soldiers entering Beit Jinn, while artillery pounded surrounding areas. The broadcaster stated that the escalation began after local residents clashed with an Israeli patrol that had infiltrated the southern town and “kidnapped” three young men.

Following a two-hour exchange of heavy fire, Israeli forces withdrew and repositioned on the hill of Butt al-Warda at the town’s outskirts.

Israeli media acknowledged that six soldiers were wounded in the clashes—three of them seriously—describing the confrontation as a “sudden ambush” that forced the deployment of reserve units and air support to secure an exit route. No further details were provided.

The aggression has fueled renewed displacement from Beit Jinn, with residents fleeing to nearby villages amid increasingly frequent Israeli attacks.

The raid came just a day after Israeli troops carried out another ground incursion into Umm al-Luqas village in Quneitra province. According to SANA, an Israeli unit in four vehicles entered the village, raided several homes, and later withdrew.

Syria condemned the repeated incursions as violations of the 1974 Disengagement Agreement and UN resolutions, urging the international community to enforce compliance and pressure Israel to halt its operations and withdraw fully.

Israel has expanded its attacks across Syrian territory following the collapse of the Assad government last year. Prime Minister Benjamin Netanyahu has reportedly instructed his forces to push deeper into Syrian territory and seize strategic positions.

Meanwhile, critics say the HTS-led interim government’s inaction and growing normalization gestures toward Israel have emboldened Tel Aviv to intensify its military operations. HTS, formerly linked to al-Qaeda, seized control of Damascus last December, formally ending Assad’s rule.

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News Network
November 24,2025

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Israeli forces have pushed over the Syrian frontier, erecting a checkpoint and stopping vehicles in the southwestern city of Quneitra, in yet another breach of the Arab country’s sovereignty.

The violation took place on Sunday, when the troops made their way across the border, setting up the outpost near the Ain al-Bayda junction in northern Quneitra, Syrian outlets reported.

According to the al-Ikhbariya paper, an Israeli detachment positioned itself at the junction, halting cars and conducting searches.

The Syrian Arab News Agency (SANA) reported that three Israeli military vehicles then moved further into the northern countryside, deploying between the town of Jubata al-Khashab and the villages of Ofaniya and Ain al-Bayda. The agency added that a separate Israeli unit mounted a new incursion in the central region, approaching the villages of Umm Batina and al-Ajraf.

Residents said such activities have surged in recent months, pointing to Israeli advances onto farmland, leveling of extensive forested areas, arrests, and spread of mobile checkpoints.

The Israeli regime began markedly increasing its military aggression against Syria last year.

The escalation coincided with increasingly ferocious onslaughts throughout the country by the so-called Hay'at Tahrir al-Sham (HTS) Takfiri terrorist group, which the government of President Bashar al-Assad had confined to northwestern Syria. The HTS, however, managed to overthrow the government as the Israeli attacks would pummel the country’s civilian and defensive infrastructure.

Various reports have shown that, during the escalation, the regime conducted more than 1,000 airstrikes on the Syrian territory and over 400 ground raids into the south.

Following the collapse of the Assad government, Tel Aviv also widened its grip over the occupied Golan Heights by taking control of a demilitarized buffer zone, in defiance of a 1974 Disengagement Agreement. Earlier this month, senior Israeli officials, including Prime Minister Benjamin Netanyahu, visited the buffer zone, prompting expressions of alarm on the part of the United Nations.

The United States, the regime’s biggest ally, has, meanwhile, been fraternizing the HTS head Abu Mohammed al-Jolani amid the widely reported prospect of rapprochement with Tel Aviv.

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