Saudi Paper to report expenses’ decline of SAR 16 mln upon cabinet decision

Saudi Paper Manufacturing Co. is expected to post a drop of SAR 16 million in expenses over the next five years, after the Saudi Cabinet decided to cover the incremental cost of expatriates working in all licensed industrial facilities, the company said in a bourse filing.

The expenses decline, which will likely help boost operating profit, will reflect on figures as of Q4 2019.

The Saudi Cabinet has decided to cover the incremental cost of expatriates working in all licensed industrial facilities for five years. The decision will come into effect as of October 1, 2019. The Kingdom began early January 2018 to apply new fees on foreign workers, in line with the Fiscal Balance Program launched end of 2017.