Saudi Arabia's Minister of Finance Considers Re-evaluating Dependent Fee for Expats to Attract Skilled Talents and Enhance Productivity

Riyadh: Mohammed Al-Jadaan, the Minister of Finance, has revealed that a study is currently underway to re-evaluate the dependent fee in an effort to attract skilled talents and foster stability, with the ultimate goal of enhancing overall productivity in Saudi Arabia.

During a podcast, Al-Jadaan explained that the dependent fee was initially based on an economic study that took into account the consumption patterns of approximately two million individuals who benefited from subsidized services provided by the state. However, he acknowledged that the equation has evolved, particularly with the introduction of the Citizen Account Program and the reduction of certain subsidies.

While addressing the implementation of the value-added tax (VAT), Al-Jadaan recognized the challenging circumstances but emphasized that it was the optimal choice at the time to safeguard public finances and reserves in the medium and long terms. He stated, "I do not believe it is the right time to reconsider the matter."

In a separate remark, Al-Jadaan discussed the Sah product, which serves as a capital preservation savings product tailored for individuals with capped limits and offering high returns. He highlighted ongoing efforts to introduce other savings products with different structures. These new products may eventually be subject to Zakat, and the Ministry of Finance is collaborating with specialized committees to finalize the offerings. An official announcement is expected upon their completion.

The study on the dependent fee highlights Saudi Arabia's focus on attracting skilled talents, fostering stability, and enhancing overall productivity. As the country continues to evolve and adapt to changing economic circumstances, it aims to create an environment that encourages growth, innovation, and the attraction of valuable talent.