Economists: new visa fees will spur private sector efficiency

The new amendments to visa fees, which were approved during Cabinet’s session on Monday, are expected to increase the levels of economic activities in the country and boost the efficiency of the private sector, according to some economists.
They spoke to Arab News welcoming the Kingdom’s latest move. Such steps fall within Saudi Arabia’s efforts to diversify its economy, away from the oil-based industry, they said.
John Sfakianakis, director of economic research at the Gulf Research Center, commented: “The measures are intended to help raise much needed non-oil revenues. Traffic fines for violators should be welcomed as this creates more safety and discipline and then numbers should eventually reflect it. Businesses will have to pay an extra cost for travel as per global fee structures. The fee comes from a relatively low base and remains competitive.”
Sami A. Al-Nwaisir, chairman of Al-Sami Holding Group, said: “The fees and taxes are good for government. I think the only time people welcome fees is when they come in the form of penalty imposed for reckless driving and the money thus collected goes to serve the victims of that cause on one hand and help deter negligent and irresponsible behavior of some on the other.
“I am sure the Saudi government is studying the implications of the new visa regime in comparison with the systems elsewhere in the world and improve government services,” he added.
“Definitely, the Saudi government wanted to increase their non-oil revenue from the current level of SR163 billion to SR530 billion, which they aimed as illustrated in Vision 2030. Again, we hope that the money collected from the fees will help improve the overall infrastructure, aside from streamlining the services.”
James Reeve, deputy chief economist and assistant general manager at Samba Financial Group, said: “The new visa regime raises the cost of hiring expatriates, thereby lowering their appeal somewhat compared with Saudis, with the overall aim of getting more Saudi nationals into the private sector. The new moves will have the added benefit of raising non-oil revenue somewhat.”
The new fee structure includes a single-entry visa that will cost travelers SR2,000 ($533), applicable to all visitors, except first time pilgrims.
A six-month multiple-entry visa will now cost SR3,000, a one year multiple-entry visa will cost SR5,000, while a two-year multiple-entry visa will cost SR8000. The Saudi Cabinet has also made it clear that these changes will not impact any bilateral deals already signed by Saudi Arabia with other countries.
As for transit visas, their new fee is going to be SR300. Exit visa fee for anyone leaving the Kingdom through its seaports will be SR50. These revised fees will come into force from Oct. 2, 2016.
Meanwhile, exit and reentry visa fees for residents will be SR200 for a single trip for two months. SR100 will be charged for each additional month till the validity of iqama (residence permit).
Exit and reentry visa fee for multiple trips will be SR500 for three months. SR200 will be charged for each additional month till the validity of iqama.

Source: Arab News