Saudi Arabia: Expats shocked by unfair sponsors’ tactics

May 19, 2016

Riyadh, May 19: Despite the many regulations put in place by the government with the aim of protecting expats, many continue to suffer at the hands of their Saudi sponsors and employers.

expatFor Ahmed Mahsoub, an Egyptian driver, the trouble started when he asked his sponsor, which happened to be an educational institute, for a salary certificate in order to buy a new car. As soon as he got the small family van, his sponsor asked him to use it to transport their students but he refused to do so since he had bought it for the use of his own family and not for work.

Mahsoub said they stopped him from working and suspended his salary until he handed over the car. One of his friends then advised him to lodge a complaint with the labor office.

Surprisingly, the labor office staff claimed that he would be deported because he had allegedly insulted some employees. Mahsoub noted that his current employers are not his original sponsor; therefore, he questioned how they could possibly force him to leave if he did not comply with their demands.

The case of Ahmad M., a Pakistani taxi driver, is equally shocking. He said that his sponsor asked him to pick up some luggage from the airport, but the flight with the luggage was delayed. Angered by the delay, his sponsor sent him an SMS containing information of a final exit visa for him.

He was deeply shocked and asked some friends to intervene in order to ask his sponsor to cancel the final exit visa. Despite all this, Ahmad says that the important issue here is that it is very easy for an employer to ruin someone’s life without considering that the person has a family to support.

A female expatriate, who requested anonymity, faced a similar ordeal. When she and her daughter who both worked for the same sponsor told the employer that they wanted to leave their positions and that they would continue working until a suitable replacement is found. However, the sponsor would not agree to this and instead told them that if they left, he would have the woman’s daughter deported.

Comments

Muthhu
 - 
Thursday, 19 May 2016

This is not What our Prophet peace be upon him taught us in ISLAM .....but unfortunately this is happening in his own birth place

S.A.
 - 
Thursday, 19 May 2016

Same thing happened with me. I have many years experience in saudi arabia but when I went to saudi on a new visa to a new sponsor I suffered a lot. He is a Syrian national doing business in saudi arabia. I went to labour court also but no use since he is having contacts with big shots. Whoever comes to work with him suffers a lot. I to india on a vacation but dod not go back to saudi. Now I can not go there for three years. His name is Abu Sulaiman of Sony Mobile in king fahd street in al khobar 11th cross. He calls himself an engineer but he is an uneducated person. He submitted false documents to become an aramco contractor.

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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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Agencies
June 22,2020

Riyadh, Jun 22: The Ministry of Municipal and Rural Affairs (MMRA) in Saudi Arabia has announced the continuation of the ban on providing Shisha (hubble-bubble), and the closure of children's play areas in restaurants as a precautionary measure for protecting the health of citizens and residents from the novel coronavirus COVID-19 infection.

The new stage, in which the Kingdom is beginning to coexist with the virus, focuses on the concept of "social distancing" that has emerged since the start of the coronavirus crisis throughout the world,

It stipulates leaving at least 2 meters between one person and the other in public places to prevent the transmission of infection, in addition to covering the mouth and nose by wearing a facemask.

It also specifies complying with the preventive protocols in workplaces, stores, shops, mosques and tourist attractions, with human gatherings not to exceed 50 people, as a maximum.

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Agencies
March 15,2020

Riyadh, Mar 15: Saudi Aramco on Sunday reported a 20.6 percent drop in its net profit for 2019 due to low oil prices and production levels, the company said in a statement.

These are the first annual results to be announced by the energy giant after its historical $29.4 billion initial public offering and listing on the Saudi Tadawul market last December.

Aramco posted net profits of $88.2 billion last year compared to $111.1 billion in 2018, Monday's statement said.

"The decrease was primarily due to lower crude oil prices and production volumes, coupled with declining refining and chemical margins," it said.

The company also made $1.6 billion of impairment provisions for losses associated with Sadara Chemical Company, an Aramco subsidiary.

"2019 was an exceptional year for Saudi Aramco. Through a variety of circumstances -- some planned and some not -- the world was offered unprecedented insight into Saudi Aramco's agility and resilience," CEO Amin Nasser said.

"Our unique scale, low costs, and resilience came together to deliver both growth and world-leading returns, while also maintaining our position as one of the world's most reliable energy companies," Nasser said.

The earnings for last year are not affected by the coronavirus outbreak or the ongoing price war between Saudi Arabia and Russia that has sent oil prices crashing.

Aramco said it will distribute dividends worth $73.2 billion for 2019 but based on its commitments under the IPO, its dividends for the next five years starting this year will be at least $75 billion.

It said its capital spending last year dropped to $32.8 billion from $35.1 billion in 2018.

The company expects capital spending, which is expenditure on projects, to be between $25 billion and $30 billion this year "in light of current market conditions and recent commodity price volatility."

But it said that capital expenditure for 2021 and beyond is currently under review.

The results were announced amid a price war between Saudi Arabia and Russia after they failed to agree on additional output cuts to support prices dented by the outbreak of the coronavirus pandemic.

"The recent COVID-19 outbreak and its rapid spread illustrate the importance of agility and adaptability in an ever-changing global landscape," Nasser said.

The kingdom said last week Aramco will pump 12.3 million barrels of oil per day, boosting output by at least 2.5 million bpd.

It also announced plans to raise production capacity from 12 million bpd to 13 million bpd.

Forecasts for future crude prices and demand are also bleak.

In its latest monthly report, the Organization of Petroleum Exporting Countries lowered its forecast for global average daily demand by 0.92 million barrels to 99.73 million barrels.

Saudi Arabia is also in the midst of a royal purge that saw King Salman's brother and nephew detained after sources said they were accused of plotting a palace coup to unseat the crown prince, heir to the Saudi throne.

Aramco shares rallied immediately after the listing on December 11, rising by 19 percent to 38 riyals ($10.1) and temporarily lifting the company's valuation above the $2 trillion mark, which was sought by Crown Prince Mohammed bin Salman, Saudi Arabia's de facto ruler.

But as oil prices tumble, Aramco shares have lost 29 percent from its highest point, slipping below the listing price.

On Thursday, Aramco's market value dropped to around $1.55 trillion, but it still remains the world's largest publicly listed company.

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