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28 March 2024

Saudi hikes visa fees: Who's exempted?

Published
By Bindu Rai

Private sector companies are gearing up to bear the additional corporate travel expenses as Saudi Arabia’s cabinet has rolled out a revised visa fee structure to boost the country’s non-oil revenues.

According to the new structure, a one-time entry visa fee of Saudi Riyals 2,000 (approximately Dh1,958) will be imposed on travellers.

However, the state shall bear this fee on behalf of any visitor coming to the Kingdom for the first time to perform Haj or Umrah rituals.

Multiple entry visa fees have also been revised, with a six-month entry costing SR3,000, while a one-year entry will cost SR5,000.

Meanwhile, those looking for a two-year multiple entry visa will now have to pay SR8,000.

The Saudi Press Agency, the Kingdom’s official news service, said this new structure was based on a recommendation of the Ministry of Finance and the Ministry of Economy and Planning suggesting some initiatives on non-oil revenues.

The revised visa regime will also see a Transit visa fee levied of SR300, while those leaving the country from a seaport will face a Departure fee of SR50.

An exit-reentry visa structure levies a SR200 fee for a single trip for two months as maximum and SR100 shall be imposed for each additional month, within the limits of the duration of the residence permit’s validity.

In addition, a SR500 fee will be levied for multiple trips for three months and SR200 for each additional month within the limits of the duration of the residence permit’s validity.

Saudi Arabia's cabinet, seeking to boost state revenues in an era of low oil prices, approved proposals to raise a range of government fees including visa charges and fines for some traffic violations, the official SPA news agency said on Monday.

New visa fees approved by the cabinet include a charge of 8,000 riyals ($2,133) for a two-year multiple entry permit. A three-month multiple exit and re-entry visa will cost 500 riyals; previously, such a visa cost 500 riyals for six months.

The cabinet also approved changes to civil aviation fees, SPA said without giving details, and set heavy fines for "drifting", in which thrill-seeking Saudi motorists spin and skid their cars at high speed.

SPA did not say how much money the government expected to raise with the new fees, which could affect business travel to Saudi Arabia and visits by family members of the nearly 10 million foreigners estimated to live and work in the kingdom.

The Council of Ministers, chaired by Crown Prince Muhammad Bin Naif, Deputy Premier and Minister of Interior, further stated the royal decree comes into effect from October 2, 2016.

As the announcement came through, the cost of the new fee structure is being felt across several private sector companies.

Mark Grayson, who works in the oil and gas sector, says the additional fees will not impact corporate travel.

“Do I think the new visa fee structure could impose a burden on smaller companies? For sure. But would it affect travel? I don’t think so. Not significantly, anyways.

“Perks could disappear from business travel for smaller entities. But corporates are known to take such bumps in their stride.”

AK, who declined to mention his company, thinks SME executives may choose to travel less.

“For larger corporations, the cost of additional visa fees can be absorbed, but for SMEs, which work on a structured and largely limited budget, this will make it difficult to write off costs,” he stated. “I could see this have a trickle-down effect.

“Corporate travel could slow down, while perks of travelling in business class or at five-star hotels could see a major revisit for some companies.”

During the same session, the Cabinet also approved an amendment to the Traffic Law so as to make stunt driving a traffic violence.

Violators will face the seizure of vehicle for 15 days and a fine of SR20,000 for first violation, the seizure of vehicle for 30 days and a fine of SR40,000 for second violation.

In both cases, the violator will be referred to the court to examine carrying out jail term.

For a third violation, the vehicle will be seized and a fine of SR60,000 will be levied, and the violator will be referred to the court.