Job Discussion Forums

[hsm]

http://www.aljazeera.com/news/2015/12/saudi-arabia-hikes-petrol-prices-40-pump-151228154350415.html

Will the "tax free salary" be a phrase from the past too?

Saudi EFL/ESL market won't be the same!

[veiledsentiments]

It hasn't been "the same" for a very long time... if ever.

VS

[scot47]

It peaked around 1978 and has been going downhill as a place to work and earn since about then. I was there before The Golden Age and then came back after it.

[In the heat of the moment]

Nitpick: 0.90 riyals ($0.24) per litre up from 0.60 riyals per litre is a 50% increase.

I expect subsidies to be reduced on all essentials such as water and natural gas, and taxes added to other products such as cigarettes and 'luxury', imported foods and goods.

The other alternative to an increasing deficit is to devalue the Riyal, which would be very difficult for all employees and companies which are paid in Riyals and pay for goods in dollars/pounds/euros etc.

[hsm]

What's disturbing about current increase is that it's just the initial phase of subsequent increases unless oil prices become $ 100 per barrel or more again.

Otherwise, many desperate individuals will be new blood joining ISIS just across the boarders!

[2buckets]

I, (and other "old timers" I'm sure) think we are going to see what I have long hoped to see. The fall of Saudi Arabia to a level where these spoiled, ungrateful wretches may have to do an honest days work to survive, But what are they capable of doing other than operating 3 cell phones at once.

And, where are all those people who ranted about "peak oil"? There's still a lot more out there that hasn't even been discovered.

"We'll see oil at $20.00 a barrel before we'll see it at $100.00, so forget about wind and solar for a while", said the oil company executive.

The Saudis will discover that learning English may be an unnecessary luxury that is no longer affordable, though it's cost is insignificant compared to military spending. The conflict in Yemen is truly a disaster and has just boosted Iran's presence and influence, the opposite of what was intended. Too bad the Saudis weren't smart enough to know that even though they "invested" billions in "defense", their military is useless. Then the returning dead, (most of whom are darker complected), are referred to as our "martyrs". So sad.

It used to be said that "the laws of physics don't apply in the kingdom". No longer the case.

This from someone who actually enjoyed his time in the magical kingdom of yore.

Time to start looking at a career change or lining up for that East Asian work visa.

[plumpy nut]

http://news.yahoo.com/stung-low-oil-prices-saudi-makes-unprecedented-cuts-002732393.html

They're raising prices on fuel, electricity, water, plane tickets, and cigarettes. With money in short supply, I would expect the Saudis to essentially screw over teachers in the future even more than they do at present. No replies after spending thousands on visas, quick laying offs after losing entire contracts.

[sicklyman]

Still paltry compared to the UK.

Causeway prices are going up in January too. It's all a sign of the times.

[bertonneau]

I just saw the 2016 budget deficit and its 340 billion. At the end of 2015 the currency reserves will be just over 600 billion. That gives the Kingdom about two years before they are in full scale debt with no serious alternative export markets.

Given how spoiled and entitled these people are I think a full scale civil war isn't out of the question when all the hand outs come to an end. There's no loyalty here. It's simply, where''s my next handout coming from? When that ends followers to ISIS and rioting in the streets. These people are going to be destroying their own society and ripping it to shreds.

There's no sympathy for the Saudis as their attitudes suck toward everything. When the money to buy cellphones runs out and they cant afford to fuel their cars and the prospects of riding around on camels and not be able to pay for AC becomes a reality again it will be fun to watch from afar the disorder that will occur.

[In the heat of the moment]

Total government expenditure isn't $340 billion, whereas you're correct, bertonneau and reserves are around $600 billion. Predictions of an $87 billion deficit for 2016 are probably on the optimistic side - like every Saudi govt. prediction for the last 20 years - so $100 billion would make more sense. At these oil prices Saudi should have 5/6 years or reserves before it has to go to international markets to borrow.

Considering its oil reserves are either in the hundreds or thousands of billions of dollars worth it shouldn't have too much trouble borrowing, what with most developed countries like the US ($16 trillion) and Japan ($11 trillion) still able to easily access bond markets.

[desert_traveller]

oct 91 has been hiked by 66%, from 0.45 to 0.75 riyals

oct 95 has been hiked by 50%, from 0.60 to 0.90 riyals

in other words, they both have been hiked by 0.30 riyals

i think gloomy predictions about the forthcoming end of the world in saudi arabia, with civil war, starvation and epidemics are a bit either pessimistic or cynical

during the so-called arab spring, saudis were often referred to in discussions as the people who would rather send their asian drivers to protest than do it by themselves

it's a crowd of mostly docile, naive and very immature individuals, very few of whom i can see picking up guns and starting shooting around

there are a few bad apples, of course, but still ... i don't think so

they have been beaten into submission and deference by one of the most ruthlessly and aggressively authoritarian regimes in the world, and in this respect, i must say the system has done a good job

they are put through 12 years of devastatingly debilitating so-called education (or rather the opposite, what would that be in one word?), and reach biological adulthood with very little adult-like about them other than neatly trimmed facial hair (by an indian barber, of course)

i would not join those who herald the beginning of a new era. i'd rather say there will be a slow gradual transition from the current fragments of a long-gone welfare state to what the other non-gcc arab countries are like in the region (depressing)

nobody can predict the future, but i would like to hope that the world is not going to end up with another IS hub where currently saudi arabia is

by the way note that saudi arabia itself is its infancy in historic terms - it is a mere 70 years old. it would not be the first country in history that is created and then soon eliminated from the map for good

not too many so-called "saudis" would shed crocodile tears if that happened, though, as long as they can continue with their procrastinating lifestyle. mind you, they are incredibly undemanding people with terribly low standards in almost all areas of life - bar the positioning of the head gear which in all cases must be frequently and perfectly adjusted

i think most of them are genuinely peaceful and relatively content people

[bertonneau]

Yesterdays Arabnews and the 2016 budget for next year 340 billion deficit. Im sure that's based on oil being at a certain price which it may or may not be. Russia has already done their budget based on oil at 30 a barrel. I have far more faith in a Russian oil prediction than a Saudi one.

Agggresive projections say oil may and I think this is a bit aggressive, but oil at 20/barrel. I cant predict the future obviously. But I would guess 2-3 years max. A peaceful docile people who stop getting subsidies on everything and the government running out of freebie money very quickly become an enraged uncivil population. I guess we'll know for sure in 2 years.

[plumpy nut]

One good thing about the oil deficit as it gets worse is you might see fewer obese Saudis. They might have to walk to see their cousin 200 meters down the road instead of hopping in the car. Also with fewer dates to eat while watching their favorite TV show, the calorie intake should go down just like the money from oil. I suspect that after a few years fewer Bangladeshi and Yemeni neighborhood market workers will be running out to Saudi cars when honked at. Who knows, they might have to let their indentured Bangladeshi worker go back to his country.