RIYADH (Saudi Arabia): March 5, 2024: Skilled expatriates in Saudi Arabia could benefit from potential revisions to dependent fees as the government aims to enhance their stability and productivity, said a senior minister.
Since 2020, every expat worker in Saudi Arabia is required to pay SR400 ($100.6) for each single dependent or companion.
In his interview with the Socrates podcast, Minister of Finance Mohammed Al-Jadaan disclosed that a study is presently in progress to re-evaluate the fee imposed by the country on foreign workers as part of its plan to attract talented individuals.
Al-Jadaan explained that imposing the dependent fee – initially SR100 in 2017 before being increased each year – was based on an economic study, considering the consumption patterns of approximately 2 million people benefiting from subsidized services provided by the state.
“When you consider their consumption habits, it becomes apparent that these individuals primarily rely on goods imported from abroad. Consequently, the earnings they generate often flow out of Saudi Arabia. However, the dynamics have shifted recently with the reduction of subsidies on certain products. Additionally, the Citizen Account Program has been more effectively targeting those in greater need, aiming to alleviate the financial strain caused by rising service costs,” he explained.
The finance minister pointed out that if the revenue generated from expatriates increases, the fees should be re-examined.
“The ongoing examination of potential fee adjustments for dependents is part of a broader strategy aimed at attracting and retaining highly skilled individuals as providing them with social stability is crucial to ensuring their productivity and meaningful contribution,” he said.
This strategic approach, Al-Jadaan added, not only enhances individual well-being but also pours into the overall economy,” the minister said.
Addressing the implementation of value-added tax, Al-Jadaan said that the country’s financial policy had to go with the regional policies in this regard. He added that VAT was used to help the less fortunate people through the Citizen Account Program.
Al-Jadaan added that when the tax rate reached 15 percent and energyn prices, particularly for car fuel, surged, the payment structure of the program was consequently