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Lord T
Joined: 07 Jul 2015 Posts: 285
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Posted: Thu Oct 06, 2016 3:31 pm Post subject: Generous Housing Allowance-no more |
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One major attraction for some ex-pats was the generous housing allowance they were given when working in the kingdom.
People who were used to living in modest surroundings back home, felt like kings and queens whilst living on expensive compounds.
Is the dream coming to an end for these people, and if so, how will they manage when reality hits them in the face? |
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nomad soul
Joined: 31 Jan 2010 Posts: 11454 Location: The real world
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Posted: Thu Oct 06, 2016 4:13 pm Post subject: Re: Generous Housing Allowance-no more |
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How do they manage when their "dream" fizzles out? They either move into cheaper accommodations (realistic) or look elsewhere for a job that includes fancy housing or a super-duper allowance that allows them to continue to live the high life (good luck with that). It's a no brainer.
Seriously, no one is feeling sorry for expats who foolishly spend all of their housing allowance (and more) on expensive digs just so that they can live like "kings and queens." But sadly, living above one's means is common in our home countries. Why do you think so many westerners look to KSA as their solution to pay down huge debts incurred back home. |
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scot47
Joined: 10 Jan 2003 Posts: 15343
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Posted: Thu Oct 06, 2016 5:15 pm Post subject: |
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When employed by Saudi Arabian Airlines I lived on their compound on Saudia City in Khaledeyah, Jeddah, A villa with two bedrooms and three bathrooms. 747 pilots got the same. Not many EFL teachers live like that !
Then the airline realised that they did not need English teachers.
Last edited by scot47 on Sat Oct 08, 2016 3:23 pm; edited 1 time in total |
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Desert Dueller
Joined: 20 Jul 2015 Posts: 45 Location: Montreal
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Posted: Thu Oct 06, 2016 10:39 pm Post subject: General Housing Allowance - no more |
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There once was a German organization running technical colleges in Riyadh and Ar Ras. All their staff lived in plush compounds, including the ELTs, and everyone tried to "keep up with the Jones's" by trying to outbid each other in the 4WD vehicle department. That also included a select few ELTs who, predictably and slightly deluded by their "apparent" expat status, never made it to a Hummer or FJ, but could only muster enough shekels to bid for one aged Range Rover and a dented Ford sedan instead......
When the Germans kicked out the ELTs from the compounds a while back, some sent their "families" home while continuing to collect the overly generous family housing allowance. This rip-off went on unchecked for years - until the Saudis finally saw the light and terminated the Germans.
Since then, a Brit outfit has taken over one of the colleges and, slowly but surely, the expat lifestyle on the best compounds of Riyadh is coming to a close. Remaining staff - soldiering on for lack of alternative employment options and waiting for salaries and housing payments to arrive - are presently shunted into one of the worst, run down and previously shunned compound in the city. Ah well, they'll just have to put up with it until they, too, are either sacked or the lights finally turned off in what was once one of the better educational establishments in KSA.
Also gone, btw, are most German staff with their FJs, Harleys, Hummers and other gear which they could never afford to run at home. This kind of deluded existence of snobbish expatriate "luxury" is slowly coming to an end in KSA. |
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leggeymountbatten
Joined: 11 Mar 2016 Posts: 74
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Posted: Fri Oct 07, 2016 12:34 am Post subject: |
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There are certainly CoE colleges in Riyadh where there have been drastic changes to the provision of compound accommodation.
The former German college mentioned by Desert Dueller (now Brit run) is one where such changes have been very radical. By all accounts the changes have not only been radical, but they have been detrimental to the teachers concerned.
Given the general economic outlook in Saudi, these kind of changes will become all too common I fear. |
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Balzac
Joined: 14 Jun 2007 Posts: 266
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Posted: Fri Oct 07, 2016 8:17 am Post subject: Re: Generous Housing Allowance-no more |
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Lord T wrote: |
One major attraction for some ex-pats was the generous housing allowance they were given when working in the kingdom.
People who were used to living in modest surroundings back home, felt like kings and queens whilst living on expensive compounds.
Is the dream coming to an end for these people, and if so, how will they manage when reality hits them in the face? |
The short answer is they won't manage. Those with decent qualifications will up and leave KSA as their skills will be in demand elsewhere and in countries where the quality of life is far higher. China for example offers a 2-year tax free waiver for certain nationalities and there are many direct hire opportunities with western universities that have tie ups with Chinese ones. Salaries are not bad for those with decent qualifications and a few years experience.
Those with fake qualifications, of which there are many, or low end ones like a first degree and a CELTA but no masters of DELTA will really struggle and, if they still wish to remain in KSA, they have have to swallow their pride and go into off compound accommodation.
Those on swanky compounds with the saunas and the weekend bars and the open swimming pools and the daily compound bus trips to the supermarkets for their housewives will have to either downsize to a cheaper compound where only a fraction of those benefits exist or rent a villa somewhere to keep their accommodations costs low.
I know of a Maltese manager who is doing just that now. Downsizing from a high end compound costing 240,000 SARs a year in the centre of Riyadh to one costing half that. He's also looking to move his kids into a cheaper school It's the future and with the taxes coming in next year, many will have to ask themselves the same question:
Now that the oil money has dried up and the glory days are over in Saudi Arabia, do I want to stay and have an even lower standard of living than previously, or should I bite the bullet and make a new life elsewhere?
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scot47
Joined: 10 Jan 2003 Posts: 15343
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Posted: Fri Oct 07, 2016 8:35 am Post subject: |
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If I were starting in a career in ELT now I would be heading for China. |
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Makkah
Joined: 08 Oct 2014 Posts: 113
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Posted: Fri Oct 07, 2016 4:49 pm Post subject: Re: Generous Housing Allowance-no more |
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Balzac wrote: |
I know of a Maltese manager who is doing just that now. Downsizing from a high end compound costing 240,000 SARs a year in the centre of Riyadh.....
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More fool him paying 5300$ / mth. Though, if he's not paying for it from his own pocket then |
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Lord T
Joined: 07 Jul 2015 Posts: 285
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Posted: Fri Oct 07, 2016 7:55 pm Post subject: Re: Generous Housing Allowance-no more |
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Makkah wrote: |
Balzac wrote: |
I know of a Maltese manager who is doing just that now. Downsizing from a high end compound costing 240,000 SARs a year in the centre of Riyadh.....
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More fool him paying 5300$ / mth. Though, if he's not paying for it from his own pocket then |
I think it may have been a case of more fool the German taxpayer in that instance.
Anyway, it's over now. |
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Balzac
Joined: 14 Jun 2007 Posts: 266
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Posted: Sat Oct 08, 2016 1:37 pm Post subject: Re: Generous Housing Allowance-no more |
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Makkah wrote: |
Balzac wrote: |
I know of a Maltese manager who is doing just that now. Downsizing from a high end compound costing 240,000 SARs a year in the centre of Riyadh.....
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More fool him paying 5300$ / mth. Though, if he's not paying for it from his own pocket then |
Makkah,
I get your point but I guess it's how you look at it. It doesn't really matter how much money you make, as you can't take it with you when you die, so you may as well spend it while you can.
In fact there are some religions that even insist you spend your money instead of saving it like the Jehovah's Witnesses as they believe in the coming Armageddon, where money won't be of any use to you, so you might as well spend it.
I guess it's all about your own perspective.
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Amerrycan Muslim
Joined: 01 Jul 2014 Posts: 51 Location: KSA
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Posted: Sat Oct 08, 2016 2:29 pm Post subject: |
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An argument could be made that as oil prices fall and salaries follow them... All western expats will feel the pinch, not just teachers and compounds will be forced to lower prices while probably cutting back on services they provide to make a profit... |
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desertfox
Joined: 14 Jun 2015 Posts: 120
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Posted: Sat Oct 08, 2016 4:18 pm Post subject: |
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Amerrycan Muslim - I think that process is already well underway.
The state of the CoE's all over Saudi is very sobering. They have all been established on a profit making (neo-liberal) basis, and many of them are struggling.
Naked profiteering in the education sector is unseemly and ultimately counter-productive.
The Saudi State is letting down its citizens and their futures on the back of falling oil prices. Moreover, the Saudi State has a responsibility to ensure that if they invite foreign providers into their education system, then they should ensure they have the basic competences to carry out the task. |
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Leno
Joined: 20 Dec 2015 Posts: 51
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Posted: Sat Oct 08, 2016 7:16 pm Post subject: |
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If housing allowances is provided, the employer must also add transport allowance. |
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Balzac
Joined: 14 Jun 2007 Posts: 266
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Posted: Sun Oct 09, 2016 9:59 am Post subject: |
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desertfox wrote: |
Amerrycan Muslim - I think that process is already well underway.
The state of the CoE's all over Saudi is very sobering. They have all been established on a profit making (neo-liberal) basis, and many of them are struggling.
Naked profiteering in the education sector is unseemly and ultimately counter-productive.
The Saudi State is letting down its citizens and their futures on the back of falling oil prices. Moreover, the Saudi State has a responsibility to ensure that if they invite foreign providers into their education system, then they should ensure they have the basic competences to carry out the task. |
desertfox,
Hear hear. I couldn't agree more. Where once advancing armies would enter a country to rape, plunder and pillage, you now have greedy foreign training providers with trendy neo-liberal ideas about providing TVET training in an EMI classroom setting who turn up to a new country to ply their particular TVET model but have done little or no training themselves to prepare for the new venture. They should already know that there is no room of OJT in million dollar contracts!
Their managers have never set foot in the country before and have zero understanding of the local culture, religion, economy etc., etc. Their trainers have the same lack of understanding and many of whom are using English as their second language with varying degrees of success. They also believe they can use the exact same educational model that may be successful in their own country and often fail to make any allowances for the local culture e.g. the needs, capabilities and aspirations of Saudi students.
It's a bit like a student turning up to a class having done no homework and wondering why at the end of term, they have failed their course. These foreign training providers are mostly clueless and it is no wonder that many are falling by the wayside and haemorrhaging money. Some have even borrowed money from, or are supported by, their own governments like the Brits and the Germans and have lost millions.
As desertfox has said, the Saudis also deserve to be asked why they have not been looking out for the needs of their students as well as there seems to date to have been little or no oversight at all on their part. Admittedly, as others have pointed out, many of these TVET contracts were negotiated when the oil price was over $100 a barrel and thus in a much more generous economic climate. However, personally, I don't believe it's the responsibility of the Saudis to add more money to the pot or top it up as those foreign training providers signed contracts and that is the nature of business e.g. they should have factored that into their business model.
It will be interesting to see how this will be resolved in the end.
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Amerrycan Muslim
Joined: 01 Jul 2014 Posts: 51 Location: KSA
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Posted: Thu Oct 13, 2016 12:30 pm Post subject: |
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Desertfox and Balzac, I won't disagree with your posts. And I am sympathetic to the students where I am and the wider student body around KSA who are being pushed towards these providers. For the most part, and there are exceptions, these providers are as you both have stated and it feeds into the idea that most Saudis (and probably Arabs for that matter) believe that if it's from the West then it's best... They have a bad habit of being hypnotized by anything shiny and glittery... |
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