Labour costs soar in Saudi Arabia after migrant exodus

November 9, 2013

Labour_costs

Riyadh, Nov 9: Saudis have begun complaining of surging labour costs following the exodus of a million foreign workers, although economists insist there will be long-term planning benefits from fully regulating the market.

Professionals in the kingdom, both Saudi and expatriate, say the freelance tradesmen who used to queue for odd jobs in public squares have virtually disappeared since police patrols began the strict enforcement of tough labour laws this week, rounding up thousands of illegals for deportation.

They have been forced to turn instead to authorised service companies, which charge double the rate or more to hire out electricians or plumbers.

“I had great difficulty finding a carpenter even at a higher price,” complained primary school teacher Majed Hasan.

“I have been told that freelance carpenters have disappeared. I went to a services company and was told that they can provide me with a carpenter for 150 riyals ($40) — double what I used to pay.”

From Monday, the authorities began rounding up thousands of illegal foreign workers following the expiry of a final amnesty for them to regularise their work status in the kingdom.

Those considered illegal range from overstaying visitors and pilgrims who seek jobs, to shop assistants and day labourers working for someone other than their official sponsor, a requirement in Saudi Arabia as in most other Gulf states.

Nearly a million migrants — Bangladeshis, Filipinos, Indians, Nepalis, Pakistanis and Yemenis among them — took advantage of the amnesty to leave the country.

Another roughly four million regularised their situation by finding employers to sponsor them but in so doing virtually emptied the market of cheap freelance labour.

“I usually find a plumber quickly. This time, I’ve roamed three areas and I couldn’t find a single one,” complained Mahmud Badr, an Egyptian doctor who lives in the kingdom’s commercial capital Jeddah. He said he was shocked by “how service workers vanished, after they were so easy to find” queueing in public squares for the chance to earn a few dollars.

Companies employing low-paid foreigners have to pay for a permit to recruit their staff, in addition to recurring fees for annual residency permits, making their charges far higher than those of freelance illegals.

“It has been so difficult to find a worker since the crackdown began,” complained Saudi Abu Maher, as he haggled with an electrician about the price to fix his satellite television receiver.

“If you find one, it is tough to agree a deal because he asks for a high price... The cost of labour has doubled over the past two days.”

But Saudi economists insist that the short-term hit to the pockets of professionals will be outweighed by the longer-term benefits in terms of more efficient planning of the Arab world’s largest economy.

“This will have a negative impact in the short term, but it will positively affect the economy in the medium and long term,” said Fawaz Al Alami, a onetime head of the Saudi team that negotiated the kingdom’s accession to the World Trade Organisation in 2005.

“Most of the departing workforce represent an oversupply in the market,” he said.

“Had the market needed these workers, their status would have been regularised.”

Economist Ihsan Bu Hulaiga said the existence of the large pool of illegal workers had long been an obstacle to efficient planning.

“The flushing out of illegals will ... help in controlling the grey economy,” Bu Hulaiga told Saudi daily Arab News.

“Once illegal expats are sent back home, we can enumerate the total strength of the legal workforce in the kingdom, what they do and which cities they are based in. This will be relevant to analyse and formulate business policies for the future.”

Expatriates account for a full nine million of the oil-rich kingdom’s 27-million-population.

The lure of work, even in low-paid jobs as domestics or construction workers, has made it a magnet for migrants from Asia as well as poorer countries in the Arab world.

But despite it huge oil wealth, Saudi Arabia has an unemployment rate of more than 12.5 per cent among its citizen population, a figure the government has long sought to cut.

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News Network
April 18,2020

Dubai, Apr 18: Saudi Arabia has reported 1,132 new coronavirus cases, taking the total number of confirmed COVID-19 patients to 8,274, the Ministry of Health revealed on Saturday.

The ministry has also announced five more deaths from the virus, taking to 92 the Kingdom’s death toll.

Recoveries
As for recoveries, 280 new recoveries were reported, pushing the total number of patients recovered to 1,329.

The ministry revealed that 79 per cent of today’s cases are expatriates and that 65 per cent of the cases were detected through intensified and active COVID-19 screening in densely-populated areas.

A total of 201 patients of Saturday’s cases have contracted the disease due to being in contact with existing cases, the ministry added.

The new infected cases have been placed under complete isolation and they are receiving necessary medical care, an official from the ministry said.

He affirmed that medical teams are intensifying efforts and screening tests in workers' neighbourhoods and accommodations in order to limit the spread of the disease.

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News Network
May 10,2020

Dubai, May 10: Kuwait will enact a "total curfew" from 4pm (1300 GMT) on Sunday through to May 30 to help to curb the spread of the new coronavirus, the Information Ministry said on Twitter on Friday.

Further details of the curfew will be announced soon, it said.

Kuwait on April 20 expanded a nationwide curfew to 16 hours a day, from 4pm to 8am, and extended a suspension of work in the public sector, including government ministries, until May 31.

On Friday the Gulf state announced 641 new coronavirus cases and three deaths, bringing its total number of confirmed cases to 7,208, with 47 deaths.

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Agencies
July 16,2020

Riyadh, Jul 16: Prince Abdul Aziz bin Saud bin Naif, minister of interior and chairman of the Hajj Supreme Committee, chaired a virtual meeting on Wednesday with the heads of  security agencies and officials in charge of this year’s Hajj season.

During the meeting, the minister and security officials discussed organizational issues related to Hajj, including preventive and precautionary steps related to fighting the coronavirus disease, procedures related to pilgrims commuting to the holy sites, and mechanisms to facilitate performing the Hajj rituals.

Prince Abdul Aziz confirmed abiding by the directives of King Salman and Crown Prince Mohammed bin Salman to take all precautions to preserve the safety of the pilgrims, and facilitate their performance of their Hajj rituals, according to the highest health standards to contain the new coronavirus pandemic.

Saudi Arabia has decided to allow only a limited number of domestic pilgrims to perform Hajj this year in the wake of the COVID-19 outbreak.

Only those expatriates between the ages of 20 and 50 who are not suffering from any chronic diseases can apply for the pilgrimage.

Earlier, the Ministry of Hajj and Umrah said that requests from people of 160 nationalities in the Kingdom have been screened electronically to select who will perform Hajj this year.

Of the pilgrims who will receive approval, 70 percent will be non-Saudis residing in the Kingdom and the remaining 30 percent will be Saudi citizens.

Meanwhile, the Ministry of Interior said that anyone found entering the sites of Hajj (Mina, Muzdalifah and Arafat) without a permit from July 18 till the end of Dhu Al-Hijjah 12 will be issued with a fine of SR10,000 ($2,600).

The fine will be doubled if the offence is repeated. Security personnel will be posted on roads leading to the holy sites to ensure that anyone who breaks the law will be stopped and fined.

Around 2.5 million foreign and domestic pilgrims performed Hajj last year.

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