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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Agencies
May 2,2020

Doha, May 2: Twenty-three staff at a hospital in Qatar were injured when tents being used to boost capacity in response to coronavirus collapsed in a fierce storm, local media reported Friday.

Winds of up to 72 kilometres per hour (45 miles per hour) caused two temporary tent annexes at Hazm Mebaireek General Hospital in Qatar's Industrial Area to collapse on Thursday, the Gulf Times reported.

No patients were hurt and most injuries to staff at the facility, 20 kilometres south west of central Doha, were minor, the daily added, citing the health ministry.

During the gale-force winds on Thursday, a Qatar Airways Boeing 787 on the ground was blown into a nearby Airbus A350 at Doha's Hamad airport causing minor damage but no injuries, the airline said in a statement.

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The Industrial Area is a gritty, densely-populated district that is home to mostly migrant labourers and has been the epicentre of Qatar's outbreak. 

Tens of thousands of residents were quarantined in the area after cases of the novel coronavirus were confirmed among the community in mid-March.

Qatar -- home to hundreds of thousands of foreign labourers working on projects linked to the 2022 World Cup -- has reported 12 deaths and 14,096 cases of the Covid-19 respiratory disease.

The hospital's executive director Hussein Ishaq said the incident was being treated "very seriously" and that an investigation had been launched.

Hospital staff had "helped ensure that no patients were injured and were safely transferred to other hospitals", he said, quoted in the Gulf Times.

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KT
April 16,2020

Dubai, Apr 16: Brand Dubai, the creative arm of the Government of Dubai Media Office (GDMO), unveiled a series of outdoor ads that form part of its new campaign to encourage the community to stay home.

Featuring the slogan 'For My Sake #StayHome for Us', the campaign depicts stunning artwork developed in collaboration with Emirati artist Maitha Demithan. The ads have been displayed on billboards, lamp posts and digital screens across Dubai.

The campaign reinforces the importance of staying at home in line with the strict restrictions on movement put in place by Dubai's Supreme Committee of Crisis and Disaster Management as part of intensified measures to combat Covid-19.

Nehal Badri, Director of Brand Dubai, said: "The outdoor campaign, displayed in prominent locations across Dubai, was designed to illustrate the importance of staying at home during the current sensitive period. Using Maitha Demithan's stunning creative artwork, we sought to send out a clear message to the community that staying at home is vital to safeguard the wellbeing of our loved ones. 

This project is one of a series of initiatives launched in collaboration with UAE-based artists to raise awareness about the need to unite efforts to protect vulnerable people from the risk of infection."

Emirati artist Maitha Demithan said: "It has been a privilege for me to work on this project and an honour to serve my country through my artworks. The three portraits featured in the campaign create a triptych that represents the people who are the most vulnerable to being infected by the virus. During such difficult times, art can play a crucial role in raising awareness on how to stay safe, but most importantly it can keep everyone inspired. I encourage all my fellow artists and the creative community to continue practicing social distancing and stay connected by using their creativity and innovation to raise awareness during this period."

Brand Dubai partnered with several media outlets, including Media 24/7, Arabian Outdoor Media and Hypermedia to launch the outdoor ads. The ads are displayed on Sheikh Zayed Road, Dubai Marina.

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News Network
March 6,2020

Riyadh, Mar 6: Saudi Arabia on Thursday emptied Islam's holiest site for sterilisation over fears of the new coronavirus, an unprecedented shutdown state media said will last while the year-round Umrah pilgrimage is suspended.

The kingdom halted the pilgrimage for its own citizens and residents on Wednesday, on top of restrictions announced last week on foreign pilgrims to stop the disease from spreading.

State television relayed images of an empty white-tiled area surrounding the Kaaba -- a large black cube structure inside Mecca's Grand Mosque -- which is usually packed with tens of thousands of pilgrims.

As a "precautionary measure", the area will remain closed as long as the umrah suspension lasts but prayers will be allowed inside the mosque, state-run Saudi Press Agency cited a mosque official as saying.

Additionally, the Grand Mosque and the Prophet's Mosque in the city of Medina will be closed an hour after the evening "Isha" prayer and will reopen an hour before the dawn "Fajr" prayer to allow cleaning and sterilisation, the official added.

A group of cleaners was seen scrubbing and mopping the tiles around the Kaaba, a structure draped in gold-embroidered gold cloth towards which Muslims around the world pray.

A Saudi official told news agency the decision to close the area was "unprecedented".

On Wednesday, Saudi Arabia suspended the umrah for its own citizens and residents over fears of the coronavirus spreading to Islam's holiest cities.

The move came after authorities last week suspended visas for the umrah and barred citizens from the six-nation Gulf Cooperation Council from entering Mecca and Medina.

Saudi Arabia on Thursday declared three new coronavirus cases, bringing the total number of reported infections to five.

The umrah, which refers to the Islamic pilgrimage to Mecca that can be undertaken at any time of year, attracts millions of Muslims from across the globe annually.

The decision to suspend the umrah mirrors a precautionary approach across the Gulf to cancel mass gatherings from concerts to sporting events.

It comes ahead of the holy fasting month of Ramadan starting in late April, which is a favoured period for pilgrimage.

It is unclear how the coronavirus will affect the hajj, due to start in late July.

Some 2.5 million faithful travelled to Saudi Arabia from across the world in 2019 to take part in the hajj, which is one of the five pillars of Islam as Muslim obligations are known.

The event is a massive logistical challenge for Saudi authorities, with colossal crowds cramming into relatively small holy sites, making attendees vulnerable to contagion.

Already reeling from slumping oil prices, the kingdom risks losing billions of dollars annually from religious tourism as it tightens access to the sites.

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