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Labor shortage to up expat pay

May 24, 2013
Labor_shortage

Jeddah, May 24: A labor shortage caused by the departure of thousands of illegal foreign workers, along with increasing commercial activity in the Kingdom, is likely to see a rise in the salaries of expatriates, according to analysts and business leaders.
Housemaids and drivers who have corrected their residential status are already demanding monthly salaries of SR 2,000 instead of SR 800, to the shock of their Saudi sponsors.
V.P. Mohammed Ali, managing director of Jeddah National Hospital, said he believes the salaries of not only domestic help but also other workers would go up, thanks to increasing business activities in the country.
“I am expecting another big economic boom in Saudi Arabia. Jeddah alone needs more than 10 new hospitals to meet health care requirements,” he told Arab News.
Ali believes that the proposal allowing foreigners to do business in partnership with Saudis would boost the Kingdom’s economy and prevent coverup businesses. “This will encourage more foreigners to invest in the Kingdom without fear and will benefit both Saudis and expatriates,” he said.
A mediator in the recruiting sector said he has a driver and a maid ready to work; the maid is asking for a salary of SR 1,600 and the driver SR 1,800.
He said both are insisting on the salaries mentioned, and added that some Saudi families pay much more than these amounts.
Saudi businessmen and employers are expecting the government to extend the July 3 deadline for illegal expats to correct their status.
“Even an extension for another three months will not be enough,” said Hussein Aleyadi.
There are nearly four million foreign workers who need their status corrected. “The Ministry of Labor should have been well-prepared to handle this huge number of workers.”
Businessmen fear their workers will not be able to correct their status within the remaining amnesty period and face penalty. “When we approach the Labor Office for the transfer of sponsorship, they say the system is not working,” said Abdul Rahman Yousuf, chairman of Al-Fadul Freight Solutions.

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News Network
April 11,2020

Dubai, Apr 11: Saudi Arabia has reported another 382 new cases of coronavirus, bringing the total number of infections in the country to 4,033, the Ministry of Health announced on Saturday.

The ministry also confirmed five more deaths from the virus, pushing the death toll in Kingdom to 52.

A total of 35 people has made full recovery from the deadly disease, taking the tally of patients recovered to 720.

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News Network
May 21,2020

May 21: Mosques across the UAE will remain closed during Eid Al Fitr, a top official has said. The Takbeer, which is chanted before the special prayers performed on Eid, will be broadcast from mosques 10 minutes before the prayer time.

During the virtual press briefing held on Wednesday, Dr Farida Al Hosani, official spokesperson of the UAE health sector, reminded citizens and expats about the importance of adhering to the safety measures as laid out by the authorities.

Contact tracing process

"Before we began to use Al Hosn app to trace the contacts of Covid-19 cases, the tracking process used to take more than 48 hours. It also depended on the memory and honesty of people. The app is an AI-enabled methodological way to trace individuals who came in contact with Covid-19 cases so that they are isolated. It has proven to be an efficient way to stop the spread of the coronavirus," Dr Farida said.

Install the app

She called on all the public to install the app on their smart phones. "The success of the tracing system via Al Hosn app relies on its use. We hope 50 to 70 per cent of people in the UAE instal and use the app in an effective way."

No sermon

Sheikh Abdul Rahman Al Shamsi, Spokesperson for the General Authority of Islamic Affairs and Endowments, said there will be no sermon for the Eid prayers.

He called on everyone to welcome Eid with joy and positivity and to stay connected with their loved ones via social media.

Mass testing

Dr Amna Al Dahhak Al Shamsi, the official spokesperson of the UAE Government, said mass testing continues across the country.

She stressed on the importance of adhering to precautionary measures and cooperating with the authorities.

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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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