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Increasing number of expats adversely affecting region, says report
Published in Alriyadh on 05 - 02 - 2017

The continuous inflow of foreign workers into the Gulf countries is having an adverse impact on the demographics of these states, according to a statistical report released by the Statistics Authorities in the Gulf Cooperation Council (GCC) states.
The GCC states have not complied with a decisions made by the Gulf labor ministers to limit expatriates to 20% of the population.
According to the statistics, the UAE and Qatar topped in the number of foreign workers, reaching 89%, followed by Kuwait, Bahrain, Oman and finally Saudi Arabia where foreigners represent 69%, 52%, 49% and 46% of the population respectively.
This rising trend is having several negative impacts on the economy, including aggravating the problem of unemployment among citizens. Expat remittances also affect the economy. Moreover, foreigners add pressure on various goods and services, such as education and health, and are a burden on subsidized public utilities, the report says.
In addition, human rights organizations often accuse Gulf states of discrimination against foreigners. These organizations call for improving expat working conditions and even ask the states to extend citizenship to them. Such demands cause serious challenges to the Gulf states and expose them to international involvement, further affecting the composition and cultural values of the population.
Speaking to Al-Riyadh Arabic newspaper, sister publication of Riyadh Daily, experts stressed that including vocational training as part of the school curriculum would significantly help in the reduction of foreign workers.
Dr. Abdullah Al-Assaf, a prominent academician and economic expert, said that foreigners were in greatly excessive numbers, and must be dealt with wisely, reasonably and fairly. "We are all responsible for this and we must join efforts to bring the numbers to acceptable figures," said.
With the number of foreigners touching 20 million, the danger of increasing crime is real. "Of course, most foreigners are hard working and honest and are living here legally."
The economist held the view that foreigners are a burden on Gulf budgets. Their annual money transfers from Gulf countries exceed SR 300 billion. From Saudi Arabia alone, about SR 152 billion were transferred in 2016, making the Kingdom second to the USA in this regard. Such capital outflow is affecting the region's economies, he said.
Saudi Arabia has imposed fees on recruitment of foreigners so that the gap between the cost of hiring a citizen and an expatriate is narrowed. Thus unemployment of citizens will prove expensive for the private sector.
Al-Assaf added that the Kingdom's education and training curricula should be in harmony with present and future needs of the labor market. The private sector should be a partner in this endeavor and should be consulted for advice on the kind of qualifications required. Moreover, citizens should work in any field. There is no social stigma attached to any occupation; it is joblessness that is shameful, he said.
Solutions to the problem will need effort, time and patience, and need to be followed up. It is only then that foreigners will be replaced by citizens, he noted.
On his part, economist Dr. Abdullah Al-Barrak called for changing the common mindset where people pursuing jobs, such as plumbers and electricians, are looked down upon. He felt that education is an important factor and such vocations must be introduced in the intermediate school curricula. Slowly this mindset will change, he felt.


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