Expat remittances likely to plummet after labor cleanup

June 16, 2013

Expat_remittances

Jeddah, Jun 16: Remittances from Saudi Arabia by expatriate workers to their home countries are likely to decline due to the new labor laws, according to Fadhel Albuainain, economist and banking expert.

“The launch of the new, accurate labor system and the implementation of the salary protection program in the future will help reduce the amount of transferred money out of the Kingdom by expatriates,” he said.

“There is no doubt that the nearly SR 110 billion sent out of the country so far is a big loss for the Kingdom's economy,” he added.

According to the recently released Migration and Development Brief 2012 of the World Bank's Migration and Remittance Unit, Saudi Arabia contributed the highest share of remittances in 2012. The amount was estimated at $ 24.18 billion, accounting for 39 percent of the GCC's total remittances, followed by the UAE, where remittances reached $ 18.21 billion, contributing to 29.8 percent of the GCC's total remittances.

The Kingdom is the largest among the GCC countries in both oil production and population. The Kingdom's remittance rate is the highest among the Gulf countries mainly due to the country's large expat population, estimated at 8 million by the General Department of Statistics.

Albuainain said he is optimistic about the recent move by the Labor Ministry to create a database for workers' salaries. This, he said, would reduce the remittance rate.

“Most expatriates with iqamas transfer their money officially through the Saudi Arabian Monetary Agency, which monitors the amount of money that each expat wants to send and compares it with his salary. If he transfers more than his salary, he will be investigated,” Albuainain said, adding that illegally transferred money is mostly sent by illegal expatriates who do not have iqamas.

“They send their money with the help of loan traffickers. In most cases, this money comes from an illegal source. However, if the Labor Ministry succeeds in arresting illegals, the illegally remitted amount will come down by SR 10 billion,” said Albuainain.

He said the Labor Ministry’s main challenge in the next stage is to control illegally transferred money.

The economist advised the Ministry of Kabor to minimize the number of illegal expatriates in order to decrease the amount of transferred money.

“We can provide a healthy environment for expatriates to invest in the stock market. Expatriates are now afraid of the stock market because of the huge losses it registered recently. When we activate this sector and provide a better working environment, we can attract them to invest safely in Saudi Arabia,” he said.

Hattab Al-Enizi, spokesman of the Labor Ministry, told Arab News that the wage protection program will officially start on July 1. It aims to include companies that have more than 3,000 employees, while smaller companies will be gradually included in the new system.

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Saudi Gazette
May 27,2020

Riyadh, May 27: Following the announcement of easing of lockdown measures, which includes reopening of all mosques for daily congressional as well as Friday prayers across the Kingdom except the holy city of Makkah, the Ministry of Islamic Affairs, Call and Guidance has set mandatory guidelines.

In a circular issued to mosque staff, Minister of Islamic Affairs, Call and Guidance Sheikh Abdullatif Al-Asheikh has instructed that all mosques must comply with the following precautionary measures and instructions:

1. Open mosques 15 minutes before the Adhan and close them 10 minutes after prayer

2. Reduce the waiting period between the Adhan and Iqamah to 10 minutes

3. Open windows and doors from entering time to the end of the prayer

4. Remove copies of Holy Qur’an and other books temporarily from mosques

5. Ensure attendees keep a distance of two meters between each other

6. Ensure one space is left between each row

7. Close all water coolers and refrigerators

8. Do not allow distribution of water or food in mosques

9. Close toilets and places of ablution

Precautionary measures on Friday prayers are as follows:

1. Open mosques 20 minutes before Friday prayer and closing them 20 minutes after prayer.

2. Friday sermon with prayer should not exceed 15 minutes.

The circular also stipulates to keep the suspension of the religious courses, programs and lectures, as well as the memorizing Holy Qur'an sessions in the mosques and to continue education and lectures remotely until further notice.

The circular pointed out that the imams of mosques should urge the worshipers to take the following precautionary measures:

1. Wear a face mask

2. Bring their own prayer rugs and not leave them after the prayer

3. Prevent accompanying children under 15 years of age from entering mosques

4. Perform ablution at home

5. Avoid crowding when entering or exiting mosques

Meanwhile, the spokesman of the Ministry of Interior clarified later in the day that people are allowed to perform congressional prayers in their locality during the time of curfew.

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News Network
June 5,2020

New Delhi, Jun 5: As part of global efforts to combat COVID-19, the UAE has provided more than 708 tonnes of medical aid, personal protection kits and supplies to 62 countries, including India, with direct beneficiaries exceeding 708,000 health workers, a UAE Embassy statement said.

The UAE is regarded as the main lifeline for the logistic operations of the international organizations' strategic warehouses in Dubai's International Humanitarian City (IHC) where the UAE is the first responder to the global crises, especially in providing assistance in relation to the current COVID-19 pandemic, it said.

Dubai's IHC has dispatched more than 132 shipments to 98 countries around the world so far since the beginning of this year, and is working as a central hub to distribute the personal protection kits, the statement said.

While the UAE continues its constant work of supporting the global efforts aimed at curbing the spread of the COVID-19 disease, it has provided more than 708 tons of medical aid, personal protection kits and supplies to 62 countries worldwide to date, with direct beneficiaries exceeding 708,000 health workers, it said.

In addition, 65 million indirect beneficiaries profited from the UAE's global efforts in combating the spread of the virus, the statement said.

Meanwhile, Etihad Airways, effective June 10, said it will link 20 cities in Europe, Asia and Australia via Abu Dhabi.

The new transfer services will make it possible for those travelling on the airline's current network of special flights to connect easily through the UAE capital onwards to key global destinations.

Etihad recently launched links from Melbourne and Sydney to London Heathrow, allowing direct transfer connections to and from the UK capital via Abu Dhabi.

Easy transfer connections via Abu Dhabi will now be available from Jakarta, Karachi, Kuala Lumpur, Manila, Melbourne, Seoul, Singapore, Sydney, and Tokyo to major cities across Europe including Amsterdam, Barcelona, Brussels, Dublin, Frankfurt, Geneva, London Heathrow, Madrid, Milan, Paris Charles de Gaulle, and Zurich, the airline said.

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Agencies
July 31,2020

Makkah, Jul 31: Organising this year's scaled-down hajj required "double efforts" by Saudi authorities amid the coronavirus pandemic, King Salman said Friday after being discharged from hospital following gall bladder surgery.

Only up to 10,000 people already residing in the kingdom are participating in this year's pilgrimage, compared with 2019's gathering of some 2.5 million from around the world.

"Holding the ritual in the shadow of this pandemic... required reducing the numbers of pilgrims, but it obliged various official agencies to put in double efforts," 84-year-old King Salman said in a speech read out on state television by acting media minister Majid Al-Qasabi.

"The hajj this year was restricted to a very limited number of people from multiple nationalities, ensuring the ritual was completed despite the difficult circumstances," he said.

The speech came on the occasion of Eid al-Adha, the Muslim festival of sacrifice, a day after the king left hospital following a 10-day stay for surgery to remove his gall bladder.

The hajj, which began on Wednesday, is one of the five pillars of Islam and a must for able-bodied Muslims at least once in their lifetime.

Authorities implemented the "highest health precautions" during the rituals, the king said.

Pilgrims, who were all tested for the virus, are required to wear masks and observe social distancing.

For Friday's "stoning of the devil", the last major ritual of the hajj, Saudi authorities offered the pilgrims pebbles that were sanitised to protect against the pandemic.

In a sign that its strict measures were working, the health ministry reported no coronavirus cases in the holy sites on Wednesday or Thursday.

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