Saudi Gazette report JEDDAH — The Ministry of Labor's decision to increase work permit fees to SR2,400 a year for foreigners employed at companies struggling to meet Saudization targets is expected to have a knock-on effect on household budgets. A discussion at the Jeddah Chamber of Commerce and Industry (JCCI) concluded that families will spend an additional SR8,000 a year because of the decision. Businesses have increased prices for services and products by 10 to 20 percent to compensate for the increase in labor fees, Al-Hayat newspaper reported. The head of the engineering offices committee at the Jeddah Chamber of Commerce and Industry Talal Samarqandi said the increase in labor fees is estimated to cost businesses SR19 billion. There are an estimated 2.4 million families in the Kingdom, meaning each family would have to spend an additional SR8,000 a year on average to cover the increase in labor fees, he added. The committee for consultancy offices at Jeddah Chamber of Commerce and Industry will prepare a study on the losses that affected sectors will incur due to this decision, which was implemented in December. A spokesman for the chamber committee for household appliances said they had to increase prices to compensate for the additional labor fees. A lawyer suggested legal action should be taken to temporarily suspend this decision until its effect on different economic sectors was determined.
