7-fold hike in Saudi visa fee may affect trade

“It’s incredibly short-sighted,” a Riyadh-based diplomat said of the changes which took effect this month.Starting in October, a six-month business or work-visit visa allowing multiple entries costs 3,000 riyals ($800), compared to 400 riyals before, said Ala Siyam, general manager of Gulf consulting house. Siyam said the changes do not apply to the European Union or United States, while fees for British nationals have only slightly increased. 

Most other countries face the higher charges but also have a new option of applying for one or two-year visas. Those cost 5,000 riyals and 8,000 riyals each. Single-entry business visas are now priced at 2,000 riyals, several times higher than before. But the higher cost of entry permits has left people “scratching their heads,” a second    diplomat said.  In April, Deputy Crown Prince Mohammed bin Salman, 31, announced a “Vision 2030” reform programme to transform the world’s biggest oil exporter into a private-sector powerhouse with diverse industrial interests and major international investments. But higher visa fees will be a “particular disincentive for SMEs”, including those wanting to assess the market or meet potential partners, the first diplomat said. Abdulrahman al-Zamil, former chairman of the Council of Saudi Chambers, says the impact of the hike in visa fees is being exaggerated. “Most of those who are interested in our market.. can afford it. These are giant companies,” said the head of Zamil Group, which employs 21,000 people in a range of sectors including steel fabrication and shipbuilding.