Saudi Arabia has cancelled financial fees on expat workers in industrial facilities to boost competitiveness, as approved by Crown Prince Mohammed bin Salman, aligning with Vision 2030 goals like tripling industrial GDP to 895 billion riyals by 2035. This move raises FIFA human rights and labour compliance questions for 2034 World Cup hosting, echoing Qatar 2022 abuses and sportswashing critiques from Amnesty International and Human Rights Watch.
Saudi Arabia’s Council of Ministers, chaired by Crown Prince Mohammed bin Salman, has approved the cancellation of financial fees imposed on expat workers in licensed industrial facilities, according to a statement reported by Sada News Agency (SadaNews) today.
The decision aims to enable national factories, enhance their sustainability and global competitiveness, and realise the Kingdom’s vision of building a competitive and flexible industrial economy, with industry as a fundamental pillar for diversifying the economy under Vision 2030.
Industrial production grew by 8.9% year-on-year in October, compared to 9.3% in September, per data from the General Authority for Statistics.
Minister of Industry and Mineral Resources Bandar Al Khorayef asserted that this decision will contribute to enhancing the global competitiveness of Saudi industry and increasing the reach of non-oil exports across various global markets.
Saudi Arabia began implementing fees for expat labour in early January 2018 as part of the fiscal balance programme, with monthly financial compensation ranging from 300 to 700 riyals per worker where expatriate numbers do not exceed Saudis, and 400 to 800 riyals if higher.
Starting from October 2019, the Saudi government bore this financial burden, and Al Khorayef stated in remarks published by the Saudi Press Agency (SPA) today that the government’s assumption of this burden over the past six years
“has played a crucial role in the qualitative growth of the industrial sector and the expansion of the industrial base over the past six years.”
The minister confirmed the continuation of support for industrial sector growth to provide 800 investment opportunities worth one trillion riyals and triple industrial GDP to 895 billion riyals by 2035.
The number of industrial facilities rose from 8,822 factories between 2019 and 2024 to more than 12,000, with total industrial investments up 35% to 1.22 trillion riyals.
Non-oil exports grew 16% to 217 billion riyals, job opportunities increased 74% to 847,000, localisation rate rose from 29% to 31%, and industrial GDP grew 56% to over 501 billion riyals.
FIFA’s Human Rights Standards for Hosts
FIFA requires host nations to uphold human rights, including labour protections under its Human Rights Policy, updated in 2016 and reinforced post-Qatar 2022.
These standards mandate compliance with UN Guiding Principles on Business and Human Rights, emphasising non-discrimination, safe working conditions, and remedy for abuses.
For the 2034 World Cup, confirmed on 11 December 2024 despite concerns, FIFA insists on binding commitments to prevent exploitation during infrastructure builds.
SadaNews reports the fee cancellation as targeted solely at “licensed industrial facilities,” leaving broader sectors like construction—critical for stadiums and venues—unaffected.
Human Rights Watch (HRW), in a 7 November 2024 report by Rothna Osman, warns Saudi Arabia’s 2034 preparations risk “widespread labour abuse” for 13.4 million migrants under the kafala system, which ties workers to employers and enables passport confiscation, wage theft, and forced labour.
Building and Wood Workers’ International (BWI), in a 28 February 2024 article, highlights persistent worker abuses under FIFA’s watch, including heat-related deaths absent protections.
Amnesty International, on 11 December 2024, described the hosting confirmation as putting “many lives at risk,” citing no reforms to end kafala or guarantee unions, fair wages, or end-of-service benefits.
European Centre for Democracy and Human Rights (ECDHR), in a 18 December 2024 piece, calls FIFA’s award a “step backward for human rights,” questioning if economic tweaks like fee waivers address core issues.
Labour Rights Compliance Gaps
The news from SadaNews notes fees since 2018, government-covered from 2019, now lifted to claim credit for growth: 12,000+ factories and 847,000 jobs as a baseline.
Yet, Minister Al Khorayef’s SPA remarks frame this as sufficient for “qualitative growth,” ignoring HRW’s documentation of 2024 abuses in construction, where migrants—42% of the population—face 50°C heat without mandated breaks.
FIFA’s 2034 bid guidelines demand transparency in labour contracts and independent monitoring, per Wikipedia’s overview of Saudi’s uncontested bid. Business & Human Rights Resource Centre tracks labour rights for 2034, noting no public audits despite PIF funding for stadiums.
CNN, reporting on 11 December 2024 by Ben Church, quotes rights groups warning of “unimaginable human cost,” contrasting Saudi’s Vision 2030 rhetoric with unaddressed deportation risks for complaining workers.
Sport and Rights Alliance, in a 16 January 2025 statement, labels the award as exposing FIFA’s “empty human rights promises,” risking lives akin to Qatar’s 6,500+ deaths.
The fee waiver, per SadaNews, boosts non-oil exports to 217 billion riyals but excludes World Cup-related mega-projects, raising doubts on scalability.
Transparency and Press Freedom Concerns
FIFA mandates host transparency, including free media access and anti-corruption measures under its Governance Regulations. Associated Press (AP), in a 12 December 2024 spotlight by James Ellingworth, confirms Saudi hosting despite rights concerns, noting limited press freedom: Reporters Without Borders ranks Saudi 166/180.
SadaNews attributes Minister Al Khorayef’s statements to SPA, state-controlled, with no independent verification of stats like 56% industrial GDP growth. HRW and Amnesty decry Saudi’s journalist arrests, like that of Salma al-Shehab in 2022 for tweets, questioning if 2034 media will face censorship. ECDHR highlights FIFA ignoring these in its bid process.
Governance and Ethical Hosting Debates
Saudi’s decision aligns with Vision 2030 industrial goals—895 billion riyals GDP by 2035, 800 opportunities worth one trillion riyals—but critics see sportswashing. BWI terms it “sports colonialism,” tying PIF soccer investments (Ronaldo, Neymar) to whitewashing abuses. AP notes FIFA President Gianni Infantino’s praise, yet rights groups urge sponsor pressure from Adidas, Coca-Cola.
Wikipedia details Saudi’s solo bid, unopposed after Australia withdrew, bypassing competitive scrutiny. CNN connects to global debates: post-Qatar reforms stalled, per Amnesty. Sport and Rights Alliance demands boycotts if no binding labour pacts emerge.
Implications for Stakeholders
Civil society, fans, and HR organisations legitimately question alignment: HRW calls for FIFA revocation risks; Amnesty for fan boycotts. The fee cancellation, while progressive for industry (localisation to 31%), per SadaNews, offers no World Cup assurances, fuelling ethical hosting calls.
International stakeholders face accountability tests: will FIFA enforce reforms, or repeat past oversights? Broader sportswashing debates intensify, with 2034 as litmus.