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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Agencies
May 7,2020

A patient in hospital with Covid-19 has given birth to a healthy baby boy in Dubai.

The 25-year-old Indian was admitted to Al Zahra Hospital after testing positive on May 2.

Although the baby was not due to arrive until May 19, the woman went into labour three days later and delivered a healthy boy weighing 3.8kg.

The parents are yet to name the child, who has also been tested for the virus.

“When we first received the Covid-19 positive diagnosis, we were afraid for the health of both my wife and the baby,” said the boy’s father, who did not want to give his name.

“Thankfully with the help of the doctors and nurses at Al Zahra Hospital, my son was born with no complications and my wife remains in stable condition.

“We couldn’t be more grateful.”

Despite arriving two weeks early, both mother and child are doing well but will only be allowed to leave the hospital to return to their home in Dubai after they return three negative tests on the trot.

“The contractions started very suddenly and it all happened very quickly,” said Al Zahra Hospital nursing director Maysoon Yousef.

“The delivery took about 10 to 15 minutes which is something we do not see very often.

“There were no complications and both the mother and baby are in good condition.”

Strict measures are in place to ensure hygiene for those inside the hospital, as well as visitors.

The new mum and her son are in the same room as the baby needs to be nursed.

According to the Centres for Disease Control and Prevention, a US national public health institute, there is no evidence that suggests the virus can be transmitted through breastfeeding.

New mothers infected with the virus should wear a mask, wash their hands before and after touching the baby.

“We operate by the latest Covid-19 international and local guidelines when it comes to the management of our maternity patients and otherwise,” said Dr Ghassan Lutfi, head of obstetrics and gynaecology at the hospital.

“We take strict measures to guarantee that there is no risk of cross contamination and that all our patients are in safe hands.”

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Agencies
April 26,2020

Riyadh, Apr 26: The Custodian of the Two Holy Mosques, King Salman bin Abdulaziz of Saudi Arabia has issued an order to partially lift the curfew in all regions of the Kingdom, to become from 9am to 5pm, starting Sunday through Wednesday May 13, while keeping a 24-hour curfew in the holy city of Makkah and in previously isolated neighbourhoods, state news agency (SPA) said early on Sunday.

The order also allowed the opening of some economic and commercial activities, which include wholesale and retail shops in addition to malls.

They can operate for two weeks, beginning on April 29 (Wednesday) until May 13 (Ramadan 6-20), however, certain shops within malls like beauty clinics, barber salons, gyms, cinemas, and restaurants will continue to be restricted from reopening.

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Agencies
July 26,2020

Jeddah, Jul 26: The city of Makkah is opening its arms again to welcome pilgrims for the annual Hajj — although only a handful compared with previous years.

Because of the COVID-19 pandemic, this year’s event is limited to about 1,000 pilgrims, all from inside Saudi Arabia, about 700 of whom are expatriates.

Abdullah Al-Kathiri, an Emirati and a recovered COVID-19 patient, postponed his pilgrimage last year because it coincided with his wedding plans. “I’ve heard from many who’ve performed the pilgrimage in past years that it was always a smooth process, even with the massive numbers,” he said. “So you could imagine how it would be with the limited number of pilgrims this year. Surely it will be a great experience.”

Khadija, a Bulgarian expatriate, was overcome with tears when she heard she would be performing Hajj this year. “I didn’t expect they’d accept,” she said. “I’m sure this year’s Hajj will be an exceptional one in all respects.”

Dr. Haifa Yousef Hamdoon, a Tunisian physician in Qassim, is another who did not expect to be accepted because of the low numbers this year. “When I received confirmation of my request, I was overjoyed and couldn’t believe it,” she said.

Mu’taz Mohamed, a Sudanese pilgrim who also lives in Qassim region, praised the preventive and precautionary health measures taken in order to ensure his safety and that of other pilgrims, to enable them to perform the rituals safely.

After completing their arrival procedures, the pilgrims were taken to their accommodation in Makkah, supervised by the Ministry of Hajj and Umrah. They will stay there for four days before beginning their pilgrimage on July 30.

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