Expat remittances: Nothing alarming

This has reference to the report of foreign workers’ remittances exceeding SR150 billion in 2016 (Jan. 29). There is no need to be wary or concerned about the figures. As in previous years, the remittance figures might make the economists raise a hue and cry without their fully taking into consideration the number of expatriates who have sent that sum.
The amount of SR150 billion was remitted during the entire year 2016 by over 10 million expatriates working and living in the Kingdom. A simple arithmetical calculation (SR150 billion/10 million expats) reveals that on average, a sum of SR15,000 was sent out by each expatriate for the whole year. This translates to monthly per capita remittances of around SR1,250. We also have to bear in mind that some of the larger amounts were transferred by expatriates who are engaged in “Tasattur” or cover-up businesses. Thus, the average figure remitted by the expatriates engaged in lawful employment is much lower.
From another statistical analytical point of view, the total remittances by expatriates account for less than 6 percent of the country’s GDP which is small bearing in mind the presence of the large number of expatriates in the Kingdom. As the majority of expatriates live here alone, they remit 80 percent of their salaries back home to support their families.
With the proposed impositions of fees upon dependents of expatriates at SR1,200 per dependent per annum which will be incrementally increased year after year, the remittances by expatriates who will maintain dependents in the Kingdom will be reduced substantially. However, those expatriates who do not find it feasible to bear the fee will send their families home and hence there is a possibility of an increase in the amount of remittances.
Needless to say, the contributions of the expatriate community to the progress and development of Saudi Arabia and the Gulf region have been monumental and unforgettable. Of course, the expatriates have also been able to earn decent wages in the Gulf at a time when their respective economies could not offer that to them.