Saudi: Expats welcome ‘green card’ but say questions need to be answered

Arab News
May 16, 2019

Jeddah, May 16: The Saudi Cabinet has given formal approval to the Privileged Iqama residency scheme, widely known as the Saudi “green card.”

The scheme will enable expatriates to permanently reside, own property and invest their assets in the Kingdom.

A special committee has been given 90 days to determine regulations governing the scheme, including fees for applicants, conditions and procedures, and a schedule of benefits.   

The scheme has been welcomed by expats in the Kingdom.

Lia Cidalia Da Graca Espiguinha, a 38-year-old Portugese licenced child care provider, said that the decision was “good for the country.”

“A lot of people wish to be here working, and a lot of people want to know the country better and they want to come to Saudi Arabia; so I think it is good for all,” she said. “It is good for the people that want to come and good for the country because it will bring money.”

However, Yawar Hussein, a 27-year-old software technician based in Jeddah, believes qualifying candidates should not be grouped into a single category.

“My parents came from India 35 years ago. They sacrificed a lot of their life for this country. My brothers and sisters were all born here. I can say that in many ways I feel more Saudi than Indian. I hope this ‘green card’ iqama will offer some exemptions or discounts for us expats that were born and have only ever lived in one country — the Kingdom of Saudi Arabia.”

Mohammed Abu Omar, a 47-year-old branding consultant from Yemen, believes that it is still too early to form a definite opinion, but nevertheless believes it is a step in the right direction.

“I believe it is still early, as we have no clue who will be eligible for this or not. Also, there is the question of the fees. Will this cater only to those who have large bank accounts? But overall, this is great news of course. This should have been done decades ago. God-willing, it benefits this wonderful country, because the (expat) people have a lot to offer, and the contribution will be massive. So, the way I see it, this opportunity should open up the market for hiring more local people as the demand will rise with everyone having the opportunity and right to own their own business. But these laborers are actually the majority of people who are sending money out of the Kingdom, and if this (green card) is catered to them, surely they will begin to reinvest back into the country instead.”

And while many expat workers have welcomed the news, some, such as Bangladeshi driver, Ameen Udeen, say they will be unaffected by the decision.

“This ‘Privileged Iqama’ means nothing to me as a Bangladeshi driver who makes SR2,000 a month (of which I send most back home). I haven’t heard what the fees will be but they say that it will be very costly. I’m sure that I will not be able to afford it. For me, this new iqama is not meant for us drivers, house-helpers and laborers. Surely we cannot afford the benefits given our salary,” he said.

The Saudi Shoura Council voted for a new residency permit for qualifying expatriates, the “Privileged Iqama,” giving them the right to permanently live, work and own their own business and property in the Kingdom.

The permit scheme will enable Saudi Arabia to attract investors, Commerce and Investment Minister Dr. Majid Al-Qassabi said.

Al-Qassabi noted that the scheme is similar to residential practices around the world, attracting quality residents to the Kingdom while protecting the interests of Saudi citizens.

Ibrahim Al-Omar, governor of the Saudi Arabian General Investment Authority (SAGIA), said: “Our aim is to attract innovators from across the world to live and work in Saudi Arabia — and this reform will play a significant role in doing so. These investors and entrepreneurs will help to drive private-sector growth.”

“It is important that stakeholders understand that Saudi Arabia offers significant long-term opportunities,” he said. “We want to attract people who will build a foundation and a network in Saudi Arabia, and who will play a role in the future development of the Saudi economy and benefit from the growth opportunities it presents.”

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KT
June 15,2020

Dubai, Jul 15: His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, announced the launch of a 'New Media Academy in Dubai on Monday - a new institution that will train people on the science of digital media.

Taking to Twitter, Sheikh Mohammed said that new media is a new science that has its own set of special tools and secrets, and that the future cadres of UAE must be at the forefront of it.

"The academy will prepare new experts and managers in the field of communication in government and private institutions, as well as training professional social media influencers", Sheikh Mohammed tweeted, adding that the new media is providing new job opportunities and careers today, and will always be a main supporter in the journey of development.

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News Network
April 23,2020

Dubai, Apr 23: UAE announced on Thursday 4 deaths, 518 new coronavirus cases and 91 recoveries.

According to the Ministry of Health and Prevention, an additional 29,000 COVID-19 tests were performed, which revealed 518 new positive cases, bringing the total number of cases to 8,756. The new patients identified are in a stable condition and undergoing treatment, according to the ministry.

UAEGov

@uaegov
 · 4h
An additional 29,000 Covid-19 tests were performed, which revealed 518 new cases bringing the total number of cases to 8756. The new cases identified are in a stable condition and undergoing treatment, @mohapuae announced today. #UAEGov

UAEGov

@uaegov
Also, @mohapuae announced that four Asian expats who tested positive for COVID-19 died due to complications. This brings the total death toll to 56. The Ministry of Health and Prevention expressed sincere condolences to the families of the deceased.

The ministry announced that four Asian expats who tested positive for COVID-19 died due to complications. This brings the total deaths to 56. The ministry expressed sincere condolences to the families of the deceased.

The total number of recovered cases has reached 1,637 with 91 patients fully recovered on Thursday, after receiving treatment.

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News Network
May 11,2020

May 11: Saudi Arabia will triple its value-added tax rate and suspend a cost of living allowance for state workers, it said on Monday, seeking to shield finances hit by low oil prices and a slump in demand for its lifeline export worsened by the new coronavirus.

Historic oil output cuts agreed by Riyadh and other major producers have given only limited support to prices after they sank on oversupply caused by a war for petroleum market share between the kingdom and its fellow oil titan Russia.

Saudi Arabia, the world's largest oil exporter, is also being hit hard by measures to fight the new coronavirus, which are likely to curb the pace and scale of economic reforms launched by Crown Prince Mohammed bin Salman.

"The cost of living allowance will be suspended as of June 1, and the value added tax will be increased to 15% from 5% as of July 1," Finance Minister Mohammed al-Jadaan said in a statement reported by the state news agency. "These measures are painful but necessary to maintain financial and economic stability over the medium to long term...and to overcome the unprecedented coronavirus crisis with the least damage possible."

The austerity measures come after the kingdom posted a $9 billion budget deficit in the first quarter.

The minister said non-oil revenues were affected by the suspension and decline in economic activity, while spending had risen due to unplanned strains on the healthcare sector and the initiatives taken to support the economy.

"All these challenges have cut state revenues, pressured public finances to a level that is hard to deal with going forward without affecting the overall economy in the medium to long term, which requires more spending cuts and measures to support non-oil revenues stability," he added.

The government has cancelled and put on hold some operating and capital expenditures for some government agencies, and cut allocations for some reform initiatives and projects worth a total 100 billion riyals ($26.6 billion), the statement said.

Central bank foreign reserves fell in March at their fastest rate in at least 20 years and to their lowest since 2011, while oil revenues in the first three months of the year fell 24% from a year earlier to $34 billion, pulling total revenues down 22%.

"The reforms are positive from a fiscal side as greater adjustment is essential. However, the tripling of VAT is unlikely to help that much in 2020 revenue wise with the expected fall in consumption," said Monica Malik, chief economist at Abu Dhabi Commercial Bank.

She said she kept unchanged her deficit forecast of 16.3% of GDP for this year, which already factors in a greater than previously announced spending cut.

About 1.5 million Saudis are employed in the government sector, according to official figures released in December.

In 2018, Saudi Arabia's King Salman ordered a monthly payment of 1,000 riyals ($267) to every state employee to compensate them for the rising living costs after the government hiked domestic gas prices and introduced value-added tax.

DIFFICULT TIMES

A committee has been formed to study all financial benefits paid to public sector employees and contractors, and will submit recommendations within 30 days, the statement said.

In late 2015, when oil prices fell from record highs, the kingdom slashed lavish bonuses, overtime payments and other benefits once considered routine perks in the public sector.

In a country without elections and with political legitimacy resting partly on distribution of oil revenue, the ability of citizens to adapt to such reforms is crucial for stability.

"Tripling the VAT will test the limits of the balance between revenues and consumption as the economy dives into a deep recession. The move will impact consumption and could also lower the expected revenues," said John Sfakianakis, a Gulf expert at the University of Cambridge.

"These are pro-austerity and pro-revenue moves rather than pro-growth ones," he said.

Hasnain Malik, head of equity strategy at Tellimer, said the VAT rise could bring about $24-$26.5 billion in additional non-oil fiscal revenue. The rise would hit consumer spending further but was a needed step towards fiscal sustainability, he said.

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