| View previous topic :: View next topic |
| Author |
Message |
jaffa
Joined: 25 Oct 2012
Posts: 403
|
 Posted: Tue Apr 23, 2013 10:28 am Post subject: Savings |
 |
|
Interesting article about how Saudis don't save much, in comparison to a lot of posts on here asking how much teachers can save.
http://www.arabnews.com/news/449105
I find it difficult to belive that the purchasing power of the Riyal has decreased by 50%. How is that possible?
Whenever Saudis travel, they always have to stay in 5 star hotels and maintain the myth that they are all dripping in money, even though they work in a warehouse or such like. Added to that infantile waste are the huge familes they have to sustain. After all, "You are not a real man unless you have 10 kids", as the locals tell you. |
|
| Back to top |
|
 |
scot47
Joined: 10 Jan 2003
Posts: 15343
|
| Posted: Tue Apr 23, 2013 3:41 pm Post subject: |
|
|
Diffiuclt to generalise. Saudfis are actually quite diverse undert the uniform of thobe and ghutra. I knew Saudi nationals who worked for the airline. Many of them despite entitlement to free flights had never left KSA ! Others would scoot off all over the place with their freeby tickets !
On savings many nationals have none. The extrended family takes care of that. The expecttaion is that the salary will support a large number of people. THAT is one reason why we get such a good deal salary-wise, if we are working direct for a pukkah govt institution.
The salary scales are set with the assumption that the money will pay for wife, kids and a tribe of unemployabls brothers and sisters.
Last edited by scot47 on Wed Apr 24, 2013 8:16 am; edited 1 time in total |
|
| Back to top |
|
|
Sheik Yerbuti
Joined: 02 Dec 2012
Posts: 105
Location: the promised land
|
| Posted: Wed Apr 24, 2013 12:41 am Post subject: |
|
|
As they said of Japan, rich country, poor Japanese...I had this debate with
a co-worker a few years back, he actually maintained Hofuf was
third world. I disagreed...third world generally lacks air conditioning. |
|
| Back to top |
|
|
salamiandbacon
Joined: 13 Apr 2012
Posts: 41
|
| Posted: Wed Apr 24, 2013 5:59 am Post subject: |
|
|
| Quote: |
I find it difficult to belive that the purchasing power of the Riyal has decreased by 50%. How is that possible?
|
Unfortunately that is what inflation does, and not just to the Riyal. The purchasing power of $1 in 1913 is equal to $23.51 today. Check on http://www.usinflationcalculator.com/ for conversion frolics.
Saudi's inflation has been running around 5% for the past 10 years that I've been here, and so 50% drop is about right. Fortunately, my salary has almost doubled in that time so it has kept pace. However, it means that I'm no better off than when I started, despite the illusion of pay rises.
Ask anyone who has been here for a while what has happened to the price of a weekly shop and they'll tell you. look at the price of a chocolate bar or a can of coke. 1 Riyal is now 2 Riyals.
Think about it next time you renew your contract. If you get less than 5% increase a year, you're going backwards.
The question of saving is the same all over the developed world. All those flashy cars and fancy clothes are bought on credit, and no-one has a halala left after the month is gone. You can add to that the fact that Saudis still think there is a safety net for them in the form of retirement and social security, so they don't feel they need to save for retirement. What will actually be available for them in 30-40 years after a population boom is anybody's guess.
Ho hum. |
|
| Back to top |
|
|
scot47
Joined: 10 Jan 2003
Posts: 15343
|
|
| Back to top |
|
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
