Job Discussion Forums

[desertmonkey]

Hello,

I am quite interested to know about the Saudi people and their lifestyle from the financial point of view. One thing have we noticed about the Saudis whom we have come across with was their high spending power.

DO MOST SAUDI WOMEN WEAR EXPENSIVE ABAYAS ?
Let me give you an example. We have been to Saudi Arabia a couple of times. Once I took my wife for abaya shopping. We went to the market and the cheapest abaya available was around SAR35, the most pricey was around SAR120. My wife wasnt quite happy with their quality, so we went to other abaya shops at departmental stores where there were nice quality abayas but the cheapest was around SAR200 and the most expensive was around SAR2000 or more, with an average price of around SAR500 which we found expensive even for western standards ( many of my wife's friends think the same). Yet we saw hardly any Saudi women at the market abaya shops but there were so many of them shopping in the upmarket abaya stores.

Our combined income is not big but it is still above UK average - about SAR30,000 nett a month (after tax deductions) .Even with this rather reasonable UK earning we sometimes felt "poor" when we went shopping in Saudi. My wife told me that the average cost of good quality abayas in the UK was about �35 (SAR200) - a fraction of Saudi prices.

MANY SAUDIS SEEM TO AFFORD EXPENSIVE HOLIDAYS
A second example was when went on holiday in a city in Asia, we stayed in a deluxe room at a top 5 star hotel for 2 weeks - we managed this financially just about comfortably, but we came across (so) many Saudis who stayed in expensive suites for up to 2 months which would have stretched our budget to the roof.

SO WHAT DID YOU MAKE OF THAT ?
So can anyone tell me if most if not all Saudis are rich ? I know there are many royalties/ superich in Saudi but do they represent a large proportion of the Saudi community ? What is the typical/average Saudi family income and what kind of housing do they live in? Do most Saudis live in palaces and luscious villas ?

Thank you for your time .

*Curiousity kills the cat*

[Bebsi]

You must be leading a very sheltered life indeed in KSA if you see only signs of wealth, and not poverty...yes, even among the Saudis themselves.

The country's GDP per capita is about 10K USD, similar to many eastern European countries in fact. It is very low by Gulf standards, considering that the GDP per capita in Qatar is about 30K USD.

There IS poverty among the Saudis, but of course it's not nearly as extreme as it is in other Arab countries such as Morocco, Sudan and Syria.

[Cleopatra]

I agree with Bebsi: you obviously have had a very limited experience of Saudi life if you belive everyone is rich, or even well-off. A small minority of Saudis are among the richest people on earth, but far greater numbers are downright poor, with the majority just getting by, like people everywhere. As Bebsi also said, the average annual income is quite low by "Western" standards, or when compared to much smaller Gulf countries like the UAE, something which often surprises many. The fact that most Saudis are still reasonably comfortable is due to the generous social welfare system - free healthcare, education and subsidised housing - rather than to their income.

[a_ibrahim]

Hi,

I have to agree with the last two posters. I also have to say that often what you find in the malls can also be found in the souqs. The women that I knew here in the USA from KSA were bargain hunters. And, often when they went home, they weren't shopping in the malls or the souqs. Many women will go to a seamstress to have their abayas made.

Now, for American women I know in KSA, some will spend the money if they think they're getting quality which they can't find back home.

We were there for hajj and at that time, all of the prices go up. But my American standards, items were still cheaper than what we can get them for here. And, if they know you're a foreigner, in any other country, they may try to hit you up for more money. When we visited Iraq, I wasn't allowed to talk in the souq. My husband knew that the minute I opened my mouth, prices would go up. It seems to be true elsewhere.

The point is, it's silly to think that all Saudis are rich based on what you think you see from them. There are plenty of less-fortunate Saudis. A friend of mine told me that there are many but people don't know them to be poor because they don't 'appear' to be poor, nor do they ask for handouts.

[Stephen Jones]

The GNP per capita includes all the third world nationals and the under 18s, but the short answer is that a Western TEFLer in Saudi earns more than the median Saudi.

[Bebsi]

Actually, Stephen, I wasn't aware of that, what you say about the GDP including the expat labour (which, by and large, comprises third-worlders earning a lot less than even the worst paid western EFL teacher). It explains a lot, in fact. I often wondered how an oil rich country like KSA could have a GDP similar to Romania!

That being said, most Saudis do not have that much money to spend, and like anywhere else, the small but growing middle-class in Saudi Arabia while having a reasonable income, doesn't get to save a huge amount or to own huge assets. It gets by on a daily basis and in relative comfort by comparison with the poorer sectors of Saudi society, but I very much doubt whether they get to buy designer clothes consistently or stay at the great luxury hotels of the world for months at a time.

In developed western economies (at least Europe and Canada, I don't know about the US) the ratio is about 3% very wealthy, 82% middle-class who range from getting by to living very comfortably, and about 15% poor, who are so through unemployment or other social factors.

In Romania, where I live, it is different. It is about 1% super-rich, 9% middle-class, and a very large sector of the populace indeed that lives in what would, by western standards, be classed as abysmal poverty. This is set to change significantly over the next ten years or so, but it is the prevailing situation right now. The abundant Mercs, Audis and BMWs crowding the streets of Bucharest could easily mislead an outsider into thinking Romania was affluent, but there are a few reasons for this. Romanians love the appearance of affluence, and many here who inherit an apartment or other asset, will sell it to buy a Mercedes SEL600 for 100,000+ euro. Likewise, many young men who earn 300 euro a month, and live with parents, will go through an unregulated banking system to get a leasing deal on an Audi or a BMW. It doesn't alter the fact that they are, very ofetn, barely able to afford food!

[dmb]

Abdullah is arriving in Turkey tomorrow. A report I read in the paper(hurriyet) said that he was coming with 30 private planes and staying at the Ciragan palace hotel(very expensive)-they've booked 150 rooms. The reason for so many? He's bringing his 30 wives with him

[Cleopatra]

Believe it or not, DMB, Abdullah is concerned to live quite a modest lifestyle by the standards of Gulf royals. It's all relative, needless to say...

As for the "30 wives", if Abdullah is on a political visit, it's highly unlikey he'd bring even one wife, let alone "30". Must say I prefer that to the silly way in which "Western" political "wives" seem to feel obliged to drag uselessly after their husbands on dull visits to dull heads of state.

[Bebsi]

[Cleopatra]

Even assuming those stories are true - and they smack of classic tabloid tales of Arab princes to me - so what??? (The reference to the 30 wives is a bit of a giveaway).So the King of Saudi Arabia is staying in a "very expensive" hotel? And you expected him to stay in... the local hostel? It's not like George Bush or Tony Bliar spare any expense on their trips abroad. I remember reading a description of what Clinton brought with him on his visit to China - I've forgotton most of the details, but do recall reading that he brought ALL his own water. At tax payers expense, presumably.

[Bebsi]

I think if I were going to China, I'd be inclined to drink bottled water. Then again, I apply that rule most places anyway. However, I cannot imagine myself brining a load of bottled water with me from my home country.

Then again, if someone else was paying.................!!

I wonder if Bill also brought his favourite specially scented and flavoured cigars??????



And, if the King of KSA cannot stay in the top hotel in town, I mean, who can????

[caliph]

The annual per capita income of SAUDIs is 12,800 US dollars, down from a round 18k in the 1980s. This comes from a reliable source,CIA world factbook, confirmed by other sources. Israel with no resources other than brain power has a personal GDP of 24,800 USD.

The GDP of all the Arab countries combined is less than that of Spain.
All the Arab countries combined translate less than 30 books a year from English, Greece translates several thousand.
Do you see a pattern here?

Oh yes, I expect some will scoff at CIA numbers.

[Cleopatra]

[Stephen Jones]

The figure of $12,800 per capita is the Purchasing Power Parity figure. Frankly I believe it produces so many distortions it is almost useless, but as it makes the poor appear less poor the authorities love it.

I believe the real figure in US dollars is around $7,000 per annum, mainly as I said because of the inclusion of unskilled TCWs, jobless women, and vast numbers of schoolchildren.

The CIA factbook is incidentally an excellent source of information, but all it does is gather the data other countries provide.

[caliph]

deleted