Renad Ghanem Saudi Gazette JEDDAH — The issue of exorbitant remittances by expatriates in the Kingdom has recently become a hot topic on social circles with several people offering different viewpoints. Although financial analysts have repeatedly warned that expat remittances are damaging the Kingdom's economy and have been clamoring for strict regulations to curb the practice, several views have appeared seeing nothing wrong in such remittances. Expatriate workers earning their living in the Kingdom argue that the money is theirs and that they have left their country and their near and dear ones to work hard to earn and support their families back home. Those against the massive outflow of money argue that the remittances are an obstacle to development and investment as they lead to an unchecked money transfer to other countries. According to a report published in a local daily earlier this year, total expat remittance from Gulf Cooperation Council (GCC) countries reached $69.5 billion (SR261 billion) in 2012. Saudi Arabia was first among the GCC countries with remittances touching almost the $28 billion-mark. Jamil, an Indian expatriate, criticized the call against expat remittances, saying that it is his money earned through hard work and sweat. Requesting anonymity, he said the only reason he left his own country was to financially support his family. “I know that there is no law against transferring money abroad, but I read articles in local dailies from writers calling to curb the practice of expat remittances or put a limit to it,” Jamil said. “On what basis are they calling to stop transferring money to our families? If I chose to keep my money here, what would I do with it? I only spend some of it for my personal expenses and the rest should go to my family since I am the only one supporting them.” “As long as we earn this money legally, and transfer it legally financial experts shouldn't keep asking the government to limit it,” he said. Remittances are increasing because the number of expatriates is increasing, he said. A Saudi accounting manager at a private company, who wished to remain anonymous, told Saudi Gazette that those who call for controls on expat remittances lack awareness. “We should be aware that a huge percentage of our economy and national income come through expats' hands,” he said. “They work for the Saudi economy and they help in boosting it along with the citizens. An employee who receives SR2,000 monthly salary brings three times the value to the company. That is why talking about putting a limit on transferring money is unfair,” he added. The accounting manager said expatriates also spend a fair amount of their money on house rent, cars, gas and all their needs from the Saudi market and send their children to private schools owned by Saudi investors. “As accounting manager, I believe that it's an agreement between us: they work and we pay, but we don't have a right to advise them how to spend their money — it is not logical to do so,” he said. “They came here to work and earn their money. What they want to do with it is totally up to them since the chances of investing their money in the country are limited.” Shadi Wahba, an Egyptian who works as an engineer at a private company, believes there is no reason for expatriates to keep their salaries inside the Kingdom as there is almost no way for them to invest their earnings. “I send a monthly amount to my parents in Egypt because they pay my bank installments,” Wahba said. “My bank account in Egypt gives me eight percent annual benefit on the money. It's kind of investment to me. If I had the chance to invest my money here, then I wouldn't transfer my salary back to my home country.” He said the money expatriate workers receive monthly is a reward for their effort. “It is not a donation. We have a job to do, we do it and then we receive our wages.”
