'Expats' pay went up 25% under Nitaqat'

July 18, 2014

Nitaqat ExpatsJeddah, Jul 18: The salaries of expatriates in the private sector rose by 25 percent while those of Saudis declined by 1 percent during 2013, according to a report published by Al-Eqtisadiah business daily on Thursday, quoting figures released by the Labor Ministry and the Saudi Arabian Monetary Agency (SAMA).

“The salaries of expats during the year rose by 25 percent or SR236 from an average salary of SR1,341 in 2012 to SR1,808 in 2013,” the report said. The average salary received by Saudis in the sector fell by one percent from SR4,801 in 2012 to SR4,748 in 2013.

Speaking with Arab News, Ibrahim Badawood, managing director of Abdul Latif Jameel Community Services, voiced his doubts about the accuracy of the salary hikes for expatriates. However, he said that if this was the case, it might be due to three reasons.

“First, it is very difficult to get visas to recruit foreign workers. Second, red-category firms have to increase salaries if they want to keep their foreign workers. Third, Saudis are not ready to do certain jobs and those expats doing these jobs may be asking for higher salaries,” he said.

Saudis receive more than double the salary received by expats in all job categories. For secretarial jobs their average salary is SR4,300 against SR1,640 for expats, sales jobs SR3,200 against SR1,200 for expats and assistant engineering jobs SR4,800 against SR1,000 for expats.

Expats contacted by Arab News expressed their astonishment over the huge salary divide between Saudis and expats, saying it’s unfair. “Salaries should be based on productivity rather than nationality,” said one expat.

According to the SAMA report, the average salary of employees in the private sector is SR2,962. However, the ministry’s statistics put it at SR2,134, a difference of SR828.

The report stated that the number of Saudis working in the private sector rose by 29 percent or 332,200 in 2013 with Saudi women taking 85 percent or 182,700 jobs, with Saudi men at 16 percent or 149,500.

The total number of Saudi women working in the sector rose from 215,800 to 398,500 in 2013 while that of Saudi men jumped from 918,800 to 1.1 million.

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News Network
April 2,2020

Dubai, Apr 2: A senior Saudi official urged more than 1 million Muslims intending to perform the hajj to delay making plans this year in comments suggesting the pilgrimage could be cancelled due to the new coronavirus pandemic.

In February, the kingdom took the extraordinary decision to close off the holy cities of Mecca and Medina to foreigners over the virus, a step which wasn’t taken even during the 1918 flu epidemic that killed tens of millions worldwide.

Restrictions have tightened in the kingdom as it grapples with over 1,500 confirmed cases of the new virus. The kingdom has reported 10 deaths so far. The Middle East has more than 71,000 confirmed cases of the virus, most of those in Iran, and over 3,300 deaths.

“The kingdom of Saudi Arabia is prepared to secure the safety of all Muslims and nationals,” Saudi Hajj and Umrah Minister Muhammad Saleh bin Taher Banten told state television. “That’s why we have requested from all Muslims around the world to hold onto signing any agreements (with tour operators) until we have a clear vision.”

Saudi Arabia has barred people from entering or exiting three major cities, including Mecca and Medina, and imposed a nighttime curfew across the country. Like other countries around the world and in the Middle East, Saudi Arabia has suspended all inbound and outbound commercial flights.

Each year, up to 2 million Muslims perform the hajj, a physically demanding and often costly pilgrimage that draws the faithful from around the world. The hajj, required of all able-bodied Muslims to perform once in their lifetime, is seen as a chance to wipe clean past sins and bring about greater humility and unity among Muslims.

Standing in Mecca in front of the cube-shaped Kaaba that Muslims pray toward five times daily, Banten also said the kingdom was already providing care for 1,200 pilgrims stuck in the holy city due to global travel restrictions. A number of them are being quarantined in hotels in Mecca, he said.

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News Network
May 20,2020

Cairo, May 20: A senior Kuwaiti lawmaker has called for imposing a tax on expatriates’ remittances to shore up the country’s finances.

MP Khalil Al Saleh, the head of the parliament’s Human Resources Committee, has presented a draft law on the proposed tax to the legislature.

“Imposing fees on expatriates’ transfers will have a role in improving the state's revenues and diversify sources of income,” he told Al Rai newspaper.

Migrant workers transfer about 4.2 billion dinars annually from Kuwait, he added, citing figures from Kuwait’s Central Bank.

“This system is in effect in most countries of the world and in more than one Gulf country. Expats there have not objected to it. Allowing this money to exit the country is very dangerous and has a direct effect on economy,” MP Al Saleh said.

“We do not target brotherly expats because imposing symbolic fees on financial transfers will not affect their money, but will have a positive effect on the state’s sources,” he said. “This has become a necessity after the money transferred outside Kuwait has reached 4.2 billion dinars annually without the state [Kuwait] making any benefit from this.”

Foreign workers make up 3.3 million of Kuwait’s 4.6 million population.

Several Kuwaiti public figures have recently pushed for redrawing the demographic imbalance in the country, accusing expatriates of straining health facilities and increasing the Covid-19 threat.

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Agencies
July 28,2020

Dubai, Jul 28: Abu Dhabi Commercial Bank (ADCB) (ADCB.AD) is letting go hundreds of employees, sources said, the latest in a round of lay-offs by regional banks as pressure mounts to cut costs amid lower oil prices and the coronavirus crisis.

The UAE’s third-biggest lender is laying off 400 employees, two sources familiar with the matter said, after it had committed to not cutting staff because of the crisis.

In a statement, a spokesman said ADCB had pursued efficiency over the last decade by managing out its lowest underachievers after regular reviews, while ensuring talent was deployed in high-growth areas, such as digital banking.

“A certain number of redundancies are therefore expected every year in the normal course of business,” the bank spokesman added.

The sources said the cuts would involve ADCB’s consumer business and several in top management were among those being let go. One source said the bank was looking to close 20 branches.

In March, ADCB had declared, “No employee will be made redundant during 2020 as a result of the COVID-19 pandemic.”

UAE banks have been hit by government measures to rein in the spread of the virus, forcing many businesses to shut temporarily.

Last week, Dubai’s largest bank, Emirates NBD, reported a slump of 58% in profits. In June, sources told Reuters the bank started a new round of hundreds of lay-offs.

In May, ADCB reported a fall of 84% in first-quarter net profit as it took impairments of $292 million on debt exposure to troubled hospital operator NMC Health and payments group Finablr.

It was a major lender, with an exposure of about $981 million, to NMC Health, which went into administration this year after months of turmoil following questions over financial reporting.

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