Saudi Arabia considers plan to restrain expat remittances

[Param]

Saudi Arabia considers plan to restrain expat remittances - The Times of India

JEDDAH (SAUDI ARABIA): Saudi Arabia is seriously thinking of imposing some kind of curbs on the huge amount flowing out through expatriate employees in the country. It may suggest a limit in foreign workers' remittance out of the country in which they constitute nearly one third of population. Concern over expats' remittance arose especially after the central bank data had disclosed that the amount transferred outside the country in the second quarter of the current year was $7.1bn which is equivalent to 17 percent of Saudi Arabia's current account surplus at a time of historically high oil revenues.

Saudi Arabia is keen to use more of its monetary resources domestically under a $130bn government spending plan announced this year. It also wants to develop its economy reducing its reliance on oil revenue. As some observers have remarked - "the Saudi economy has gone through a number of rough patches over the decades without compromising the basic stability of the monetary situation."

 

[Tshering22]

If they do that, no one would stay back in that golden prison they call a country. The only reason people make that journey is to send back money in large volumes. There are no theatres, no pubs, no nothings to do any entertainment there. Women are treated like trash there. Locals are so effing arrogant that even a raised eyebrow against them even doing something bad will land you in jail.

No respect, always at mercy of locals, no entertainment, stupid and fanatic mulla rules, no booze and now this.... Saudi is going to invite disaster for itself if if continues on this path. No Indian would want to stay there if money cannot be taken back in large proportions.

 

[SpArK]

Saudi Arabia is the worst place someone can be.


Men live in fear and women live in single colored tents .

Let this happen and people check other places for lvelihood.

 

[tony4562]

This brings an interesting question. Since Saudi and the gulf region is such an unpleasant place on earth, why are millions of indian labourers going there willingly every year? You don't see for example chinese doing the same even though chinese all all over the planet with the gulf-region being perhaps the only exception. Why? My explaination is very simple: indians have culturally and genetically so much in common with the middle-eastners that they simply feel more comfortable going west than heading east. Same type of clothes, same type of scripts, same line of foods, .. Also this got to do with India's history being a islam land for thausands of years.

That's why your governements new-found going-east policy won't work because culturally/anthropologically indians are 100% incompatible with east asians but 100% compatible with the mullahs from the west. You guy won't admit it, but Islam has already taken such a deep root in India, it is virtually in the blood.

 

[Param]

This brings an interesting question. Since Saudi and the gulf region is such an unpleasant place on earth, why are millions of indian labourers going there willingly every year? You don't see for example chinese doing the same even though chinese all all over the planet with the gulf-region being perhaps the only exception. Why? My explaination is very simple: indians have culturally and genetically so much in common with the middle-eastners that they simply feel more comfortable going west than heading east. Same type of clothes, same type of scripts, same line of foods, .. Also this got to do with India's history being a islam land for thausands of years.

That's why your governements new-found going-east policy won't work because culturally/anthropologically indians are 100% incompatible with east asians but 100% compatible with the mullahs from the west. You guy won't admit it, but Islam has already taken such a deep root in India, it is virtually in the blood.

Nonsense!
A lot of Indians go to work in the Gulf because those are Oil rich countries with a lot of employment opportunities. What is there in the East? Developed countries like Japan, Korea and Singapore do not require foreign workers.

Since you talk so much about Mullahs, Middle east, Saudi Arabia are you a Pakistani?

 

[mayfair]

This brings an interesting question. Since Saudi and the gulf region is such an unpleasant place on earth, why are millions of indian labourers going there willingly every year?

There's a saying in Hindi "Waqt aane par gadhe ko bhi baap banaana padta hai". Lots of Indians need employment and money, the gulf countries offer most oppurtunities for semi-skilled or unskilled Indian workers as opposed to Western countries who actively discourage such overseas workers. They require and permit a high skilled work force and plenty of Indians head there as well.

Extrapolate that to the Indian population size and it's a no brainer that there are far more of the former than the latter. So more Indians heading to Gulf is expected. Of course if Saudi Arabia wishes to curtail remittances then many workers may be forced to rethink their options, after all sending money home is one of the prime reasons they are there. Plus, it may also be a fact that Muslims who form a significant portion of the Indian work force in the Gulf may find it easier to work in the Gulf than in the West.

 

[tony4562]

I am not a muslim and I am not a fan of Islam either. It is a brutal religion. But I can't help but feel sorry for India because in my opinion India lies direct in the path of the rapidly advaninc green faith, no escape!

 

[tony4562]

Guess who's next.

West europeans who have lost their identity, will be next. Else where, people with dark complexion andat same time being overtly religious like Mexico will be vulnerable to Islam, Uncle will be the next to fall, too many stupid religious forces there. East asians who generally are not religious and are fed with negative images about islam and muslims from birth on, will be the last ones standing.

 

[DMF]

West europeans who have lost their identity, will be next. Else where, people with dark complexion andat same time being overtly religious like Mexico will be vulnerable to Islam, Uncle will be the next to fall, too many stupid religious forces there. East asians who generally are not religious and are fed with negative images about islam and muslims from birth on, will be the last ones standing.

yes, no hen people will become a muslim, also in China the greens will not accept a hen to be green, how come a pork eater become green? so the China and the east will be the last stand.

 

[Virendra]

West Europeans have lost their identity?
Seriously, what Pakistani madrassa were you educated in?

Now I have established you are a Pakistani. Might as well add a flag, the act is up.

This one is a chini I guess, if I remember correctly from before.

 

[tony4562]

France alone has 8 million muslims and they are multiplying like there is no tomorrow whereas ethnic french men have a birthrate about 1.2 children per woman. The writing is on the wall, islamization of western europe is now an irreversible process. Guess that's why the resident China-hater Armand is now hidding in China, too afraid that the baton-wielding angry muslim youth might find out where he originally came from.

 

[Galaxy]

Muslims in Europe, Non-Muslim countries growing like anything. Total fertility rate is almost 50%-70% higher than other religion. It's demographic invasion. Although rise in number is not improving the standard of life. I don't think education is the reason because TFR of Muslims in urban location is also 50%-70% higher than Non-Muslims.

In 22nd century, Muslims will be around 50% and other religion 50%. Too much Insurgency, Separatist movement, Jihadi, Terrorism will be visible.

 

[civfanatic]

yes, no hen people will become a muslim, also in China the greens will not accept a hen to be green, how come a pork eater become green? so the China and the east will be the last stand.

Your green hens eat pork? What?

This one is a chini I guess, if I remember correctly from before.

I think (am pretty sure) that he is a Chinese ex-pat living in the West.

 

[LurkerBaba]

Your green hens eat pork? What?

From what I understood: No Hans will become green (Muslims), since pork is a staple diet of Hans. Muslims won't accept a pork eating Han Muslim, hence China is safe !

(someone should tell him about Jinnah )

 

[pmaitra]

I think this is a good move from the Saudi point of view. The advantages are many:

• KSA gets to keep more of its money in the country.
• Saudis will not be able to afford cheap labour as the demand will rise and the supply will go down because many of these labourers will decide to return to their home countries if they are not able to send remittances back home.
• Consequently, more Saudis will learn to work as unskilled workers, thus, learning to respect people (and their job) that they have hitherto hired from abroad and treated with disdain.

For those who will return home? Perhaps sad because the source of money is no longer the same, but hey, you got your freedom and respect back. It's loss at one side but gain in the other.

 

[mayfair]

^^It is not just the unskilled workforce. Most of their highly skilled workforce- doctors, engineers, scientists, businessmen, managerial service providers, health service providers etc are expatriates. Assuming that they are able to co opt cheap labour from within, force the nomadic folks to replace the unskilled imported labour, for instance, they do not have enough skilled professionals within their country to replace the expats. After all what good is the big money jobs if they cannot save to send or spend it at home?

 

[ejazr]

Why is a discussion on Saudi and its plan to shore up its current account by "looking" at proposals to control them degenerating into xenophobic Islam bashing? Lets stick to the topic please.

On topic,
GCC as a whole is the largest bloc contributor to India in remitances and I would be surprised if they can put any effective controls on this. If they block it legally, the transfers will take place illegally.

If Saudi Arabia REALLY wants to keep money inside, it should look at more innovative ways. Like raising the minimum wage so that Saudis instead of expats do the low paying jobs and standardize it across the board. This way, Saudi work participation will increase and reduce the need for foriegn workers like plumbers, secretary staff, munipal staff e.t.c. Allow foreign tourists and families of expats to come in Saudi Arabia so that will force them to spend within Saudi Arabia itself. On top of that allow expats to invest in Saudi companies and stock markets directly so that this money can benefit their economy.
Placing a cap on remittances is unwieldy and unlikely to be a good policy instrument to retain money within the Saudi economy,

On the Indian side, remittance inflows from the GCC are around $35 Billion annually, so although it may have some impact, it will not be significant to the overall economy. Economies of Pakistan, Bangladesh and Philippines that are much more dependent on remittance will be affected much more than India.