Job Discussion Forums

[johnslat]

Has anyone heard anything specific about this?

By EMAN EL-SHENAWI
AL ARABIYA WITH AGENCIES

"Alarmed by a predominantly expatriate workforce in Saudi Arabia sending large money transfers outside of the country, the Saudi Labor Ministry has said it will introduce a �salary protection� program to boost its domestic economy.

The new program will dictate the amount an expat working in Saudi Arabia can send back home, the Saudi labor minister, Adel Fakih, said. Expats must keep the bulk of their salaries within the country under the new program.

�About nine out of 10 workers in the country are foreigners,� Fakih said. �This has led to millions of riyals being transferred back to their home countries, harming the local economy,� Fakih added.

The Labor Ministry has also put a 20 percent ceiling on the country�s guest workers in its latest bid to help make jobs for Saudi nationals.

�The maximum number of long-term expatriate workers in the kingdom should not exceed 20 percent of the Saudi population,� a spokesman from the ministry was quoted as saying in the Saudi daily Arab News.

Within the next three years, Fakih expects unemployment among Saudi nationals to decline by 50 percent because of ministry initiatives. The country�s unemployment rate for Saudi citizens was 10.8 percent in July.

The ministry said it intends to launch 30 new initiatives as part of its drive to create jobs for Saudi university graduates.

Fakih told Arab News that the initiatives would include efforts to develop the skills of Saudi workers, informing the private sector about qualified Saudi jobseekers and opening new opportunities for women.

Fakih also said the ministry would eliminate the so-called �Saudization� plan that had been put in to encourage more nationals to work.

Instead, Fakih said that the �Hafiz� program, which provides financial assistance to Saudis who are not employed until they are provided with a job, will better support nationals in need of job opportunities.

The ministry had previously said it would begin to pay unemployment benefits for the first time beginning in November."



http://www.alarabiya.net/articles/2011/10/23/173313.htm

Regards,
John

[caliph]

I was in SA in the 80s when they decided to apply an income tax on expats. The whole infrastructure depending on skilled expats shut down with 24 hours as everyone left their jobs and prepared to leave. The tax was rescinded the next day as electricity, water, air traffic etc. ceased to flow. Where I worked there were several hundred aircraft mechanics who simply dropped their tools and walked off the job. The Min. of Finance must have heard that "clank" in Jeddah all the way in Riyadh.

I doubt it will stick, at least not for upper level expats. The subcontinentals will bear the brunt, as usual.

[It's Scary!]

.

[Middle East Beast]

I think it'll be a deal-breaker for many.

MEB

[McBrainiac]

If they do this, there will be a mass exodus, the likes of which they will be shocked by. People do not go to the KSA for the lifestyle, that is for sure.

I figure if it is implemented, it will not be without enormous loopholes for people with premier employers.

[Badar Bin Bada Boom]

Of course this would be a deal-breaker. I doubt any newbies would come to SA knowing they'd not be allowed to repatriate the bulk of their savings! Nor would any Westerners stay here. What would be the point? This is the silliest work-related notion I've ever heard of coming from the Magic Tragic Kingdom, and that's saying a lot. (Some, like me, are paid from outside the Kingdom direct to home-country accounts, so we would stay, until the authorities dreamed up another asinine idea.)

[McBrainiac]

The kind of gig that you have would be the only one worth having. Any job that would direct deposit into a Saudi bank account would become of dubious value. I can't imagine how it would be possible to spend our salaries in country!

[lynnknows]

I dont see the big deal. The GULF as a whole is known for making laws they do not or can not enforce. I see this as one of them.
In order for this to be applied they would have to shut down all the money transfer places. How would an exchange place know what 20% of your salary is? Yes, a bank would know because they get your salary, but those exchange places have no idea.
Would they put your salary on your iqama, I seriously doubt it. These countries make law now so they can enforce them in the future if they WANT to. They also make these laws so they can pick and choose the people they want to make crazy, they pick on the lower paid expats at will. Its like UAE has a law on the books that says a person can not make more that 5 visa runs. I personally know people that make visa runs every 40 days. They have been doing this for over 2 yrs. I am sure they get away with it becasue they are American.
For those of you that ask why. One woman had a husband that is Saudi but he does not have permission to be married to her so he put her and her children by her EX in UAE. this way she is close to him. Others just want to be in Muslim countries and are retired so they will never get a visa to stay becasue they do not work but love UAE.
I dont see western expats leaving in droves becasue of this anyway. I have seen MANY American come to the gulf only to go home with more STUFF and no money. They buy all types of crap and or their money literally goes down the toilet. One family I knew ate and a resturant, had take out , or ordered in EVERY DAY. When they went home they had no money. Yes, some people do come here to save and do it but MANY do not. They live like they do at home pay check to pay check........Sad but true.

[Mysterious]

I can see this happening in a way.

Also, there are jobs out there now where the foreign EFL teachers are getting paid to teach the Saudi's how to teach. I think once the Saudi's get to a standard where they have great teachers with great English, they will take over those teaching jobs. But I think it will be some time before it massively hits us foreigners. As for the other job sectors.. who knows..

[McBrainiac]

I have seen MANY American come to the gulf only to go home with more STUFF and no money. They buy all types of crap and or their money literally goes down the toilet. One family I knew ate and a resturant, had take out , or ordered in EVERY DAY. When they went home they had no money. Yes, some people do come here to save and do it but MANY do not. They live like they do at home pay check to pay check........Sad but true.[/quote]


Wow, I have never run into anyone like this during several years in the KSA. Hope that you are right that this is unlikely to be enforced.

[BretHarte]

[Middle East Beast]

[It's Scary!]

..

[scot47]

There were persistent rumours about the time I was leaving. At the same time there were poersistent rumours that Riyadh was granting citizenship to those foreigners who petitioned the King.

Bulls**** - both stories.

[veiledsentiments]