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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News Network
May 3,2020

Dubai, May 3: Over 150,000 Indians in the UAE, who wish to return home amid the coronavirus lockdown, have applied through the online registration process to the Indian missions here, according to media reports.

The Indian missions in the country last week opened online registration for the expatriates who wish to fly back home after getting stuck in the country amidst the lockdown due to the coronavirus pandemic.

As of 6 pm on Saturday, we received more than 150,000 registrations, Consul General of India in Dubai Vipul told the Gulf News on Saturday.

A quarter of them want to return to their homeland after losing their jobs, he said.

According to a report in the Khaleej Times on Sunday, about 40 per cent of the applicants who have registered are blue-collared workers and 20 per cent are working professionals.

"Roughly 20 per cent have suffered job losses and about 55 per cent of the total applicants are from Kerala," Neeraj Aggarwal, Consul, Press, Information, Culture was quoted as saying in the report.

Aggarwal said that the figures would change as they are expecting registrations from workers from other states, including Telangana, Uttar Pradesh, and Bihar.

About 10 per cent of the applicants are visit and tourist visa holders who got stranded here due to the ongoing lockdown in India.

India extended the ongoing lockdown by two weeks from May 4 to contain the spread of the coronavirus that has affected nearly 40,000 people in the country.

Aggarwal said that a small number of the applications constitute those from pregnant women and other medical cases.

Since the online registration process was launched, the Consulate's website crashed several times due to the heavy rush of applicants wishing to register to fly back home.

The site has been working fine now though it took a lot of time for it to stabilise in the initial phase due to the heavy traffic, the counsel general said.

He said that the missions here have not yet received any information from the Indian government about the mode of transport of the stranded citizens, the prices of the tickets or how the COVID-19 test results of applicants would be assessed for their journey.

There are high-level discussions going on regarding these things, he said in the report.

Meanwhile, Norka (The Non Resident Keralites Affairs) said it has received a total of 398,000 applications from Keralites across the globe who wish to return home.

"Of which, the highest numbers are from the UAE. At least 175,423 applicants have signed up from the UAE," Norka said in an official statement on Saturday.

It also received 54,305 registrations from Saudi Arabia, 2,437 from the UK, 2,255 from the US, and 1,958 from Ukraine from those who wish to return to India, the Khaleej Times reported.

The coronavirus has infected 13,599 people and claimed 119 lives in the UAE, the Ministry of Health and Prevention said on Saturday.

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coastaldigest.com news network
August 3,2020

Sharjah, Aug 3: A 24-year-old Indian engineer has fallen to death from the sixth floor of a residential building on Eid al-Adha in the UAE's Sharjah, a media report said on Monday. 

The electrical engineer, identified with his single name Sumesh, hailed from the south Indian state of Kerala.

He lived in a building in Al Dhaid in Sharjah, from where he fell to death on Friday, the report said, adding that he was apparently talking over the phone and threw it down minutes before the incident.

Sumesh, who came to the UAE a year ago, worked as a designer in Sharjah's Muwaileh area. His roommates said that he had some "personal issues" that had been "bothering him for some time", according to the report.

"It was Eid al-Adha and our cook had made biryani for us. We were all cracking jokes and having a good time. In fact, even Cuckoo (Sumesh) was also laughing with us. He seemed happy. Nobody had anticipated this. I did sense a few times that something was troubling him and I even asked him about it, but he brushed it off," the report quoted his roommate Dileep Kumar as saying.

Shans KF, another roommate, said Sumesh was to travel to India for his annual leave but could not because of the COVID-19 pandemic.

The police have launched an investigation and moved the body to the forensic lab for an autopsy.

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News Network
May 21,2020

Dubai, May 21: Around 10,000 Iranian health workers have been infected with the new coronavirus, the semi-official ILNA news agency quoted a deputy health minister as saying on Thursday.

Health services are stretched thin in Iran, the Middle East country hardest hit by the respiratory pandemic, with 7,249 deaths and a total of 129,341 infections. The Health Ministry said in April that over 100 health workers had died of COVID-19.

No more details on infections among health workers were immediately available.

Earlier on Thursday, Health Minister Saeed Namaki appealed to Iranians to avoid travelling during the Eid al-Fitr religious holiday later this month to avoid the risk of a new surge of coronavirus infections, state TV reported.

Iranians often travel to different cities around the country to mark the end of the Muslim holy fasting month of Ramadan, something Namaki said could lead to a disregard of social distancing rules and a fresh outbreak of COVID-19.

"I am urging you not to travel during the Eid. Definitely, such trips mean new cases of infection...People should not travel to and from those high-risk red areas," Namaki was quoted by state television as saying.

"Some 90% of the population in many areas has not yet contracted the disease. In the case of a new outbreak, it will be very difficult for me and my colleagues to control it."

A report by parliament's research centre suggested that the actual tally of infections and deaths in Iran might be almost twice that announced by the health ministry.

However, worried that measures to limit public activities could wreck an economy which has already been battered by U.S. sanctions, the government has been easing most restrictions on normal life in late April.

Infected cases have been on a rising trajectory for the past two weeks. However, President Hassan Rouhani said on Wednesday that Iran was close to curbing the outbreak.

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