JEDDAH: The Saudi government is not expected to impose fees on the remittances of foreign workers despite a related proposal submitted to the Shoura Council to discus the subject.
Dr. Mohammed Al-Abbas, an economic analyst, told Arab News that the proposal was made even before the last drops in oil prices.
“Long ago, foreign workers’ remittances went as high as nearly SR150 billion ($40 billion). Since then media has called for the imposing of fees on such remittances. At that time there was no tendency to impose dependent fees on expats,” Al-Abbas said.
He added that the only discussion circulating then was whether to impose fees on remittances or not.
Al-Abbas, who is also a member of the Shoura Council, explained that the main point behind that idea was to preserve the country’s financial reserves. “As you know, when an expat worker sends money to his country, the process should go through major currencies, especially the dollar. That means banks change riyals with dollars. That way, dollars are sent outside the Kingdom. This, of course, drains our reserves of hard currency,” he said.
For that reason, Al-Abbas continued, a proposal was made to curb such remittances for the sake of alleviating pressure on our reserves.
Asked if the move would add to the national economy, he said: “I do not want to anticipate events, but I can say, from my own point of view, and this is just my personal opinion, imposing fees on foreign workers remittances was not feasible in the past, nor will it be a major solution, as such remitting processes can be made through a variety of channels,” he said.
He further explained that when an expat pays all his taxes regularly to the government, you could not then stop him from doing any lawful action. This is one of the rights that the regulations of Kingdom have guaranteed him. He added that it is not acceptable to ask a foreign worker who is committed to paying taxes to pay for his remittances. “The Kingdom’s rules are always based on justice and fairness,” he said.
Al-Abbas believes that the move will not work as a solution to national economic issues, such as unemployment. “I do not think such a project will even have a good impact on the national economy, in that it will not contribute to reducing unemployment rates,” he said.
Al-Abbas added that the project would not help to reduce the shadow economy. The experienced analyst thinks that the move would only cause harm to foreign laborers.
He said that the project, if approved, will have negative consequences on foreign investments in Saudi Arabia. He also noted that the countries of these foreign workers would reciprocate. “They will do the same and impose fees on Saudis living or working in their countries. This normally happens in global economic policies,” he said.
He pointed out that the project is still a proposal that might be discussed at the Shoura Council, and the latter may agree on the suggestion or not. “So far nothing is official about that,”
Furthermore, Al-Abbas said that imposing such burdens would also make it hard to control capital mobility smoothly and fairly, and might be a barrier to capital movement. “The most important point here is to efficiently control our banking system if we want things to go the way we like. Here is the point we should work on. The Saudi banking system is strong enough to detect any tax evasion attempts,” he said.
He gave an example, saying if a foreign worker tries to remit big amounts of money, he will be questioned as: “Where did you get that amount from?” In case he was found not paying tax, tough legal measures will be taken against him. “These measures can be as harsh as expropriating his whole money if he fails to disclose its source,” he said.
Another important issue that Al-Abbas highlighted is to support the Ministry of Trade’s great efforts in fighting cover-up (tasatur). He said that it would be better if we focus on these two matters rather than imposing more fees on foreign workers.
Saudi Arabia’s Ministry of Finance has earlier denied reports that it was planning to impose fees on the remittances of foreign workers.
The ministry said it was committed to supporting the free movement of capital through official channels in accordance with international standards and practices. The statement was issued in response to “baseless and unfounded reports” by some media outlets.
The Kingdom is home to more than 10 million foreign workers who in 2017 sent almost $38 billion to their home countries.
The ministry said keeping the remittances free of fees “will also enhance foreign investors’ confidence in the Kingdom’s economy and financial systems.”
The ministry said it had already denied rumors of charging expats for their remittances in January 2017.
Fees on expat remittances ‘not a solution’, in KSA
Fees on expat remittances ‘not a solution’, in KSA
- The Kingdom is home to more than 10 million foreign workers who in 2017 sent almost $38 billion to their home countries
Saudi Arabia’s KSrelief donates tonnes of dates and food aid to families in need
RIYADH: Saudi aid agency KSrelief has donated 40 tonnes of dates to Malaysia and Poland, the Saudi Press Agency reported on Thursday.
In Warsaw, Poland, 15 tonnes of dates were handed over, while in Malaysia a further 23 tonnes were distributed as part of the agency’s ongoing work to assist those most in need.
On Wednesday, meanwhile, the Saudi Ministry of Islamic Affairs, Dawah and Guidance launched the Kingdom’s gift program to distribute dates and iftar meals in Amman, Jordan.
The first stage involves the delivery of approximately 5 tonnes of dates to more than 20,000 people.
The second part of the program aims to provide iftar meals to over 7,000 people.
KSrelief also provided 2,900 food aid parcels to Montenegro, Bangladesh, Pakistan, Benin and Sudan, benefiting 14,275 people.
Crown prince receives governors of Saudi regions
RIYADH: Saudi Arabia’s Crown Prince Mohammed bin Salman has received governors of the Kingdom’s regions following their 31st annual meeting, the Saudi Press Agency said early Thursday.
The Crown Prince was briefed on the most prominent topics discussed at the annual meeting.
He commended the governors’ efforts to serve the country, citizens and residents, and their work to achieve comprehensive development.
Saudi Arabia to host conference on role of universities in promoting peaceful coexistence
- The event will take place at Imam Mohammad Ibn Saud Islamic University on April 28 and 29
RIYADH: Imam Mohammad Ibn Saud Islamic University in Riyadh will host an international conference next month titled “The Role of Universities in Promoting the Values of National Belonging and Peaceful Coexistence.” It will take place on April 28 and 29 under the patronage of King Salman.
Ahmed bin Salem Al-Ameri, the president of the university, thanked the king for his support and said the aim of the event is to “highlight the experiences of universities in promoting these lofty values, and to demonstrate the importance of correct doctrine and the approach of moderation,” the Saudi Press agency reported on Wednesday.
The participants will include leaders, dignitaries, scholars and intellectuals from the Kingdom and other countries, he added, who will share their specialist legal, scientific and social expertise during lectures, discussion sessions and workshops.
Weather warnings issued across Saudi Arabia until Monday
RIYADH: Members of the public have been urged to exercise caution over the coming days as weather warnings have been issued in several regions across Saudi Arabia.
The General Directorate of Civil Defense said there could be thunderstorms from Thursday to Monday, the Saudi Press Agency reported.
Moderate to heavy rain, leading to torrential rain, hail and high wind, has been forecast for Makkah region, including the Holy Capital, Al-Jumum, Al-Kamil, Bahra, Khulais, Taif, Maysan, Adham, Al-Ardiyat, Tarbah, Raniyah, Al-Muwayh, and Al-Khurmah.
The Riyadh region will be affected by similar weather conditions, including the capital, Diriyah, Afif, Al-Dawadmi. Al-Quwayiyah, Al-Majma’ah, Thadiq, Marrat, Al-Ghat, Al-Zulfi, Shaqraa, Rumah, Huraymila, Darma, Al-Muzahmiyah, Al-Kharj, Wadi Al-Dawasir, Al-Salil, Al-Aflaj, Hotat Bani Tamim and Al-Hareeq.
The same has been forecast for the regions of Jazan, Asir, Al-Baha, Madinah, Tabuk, Al-Jawf, the Northern Border, Hail, Al-Qassim, and the Eastern Province.
Some parts of Makkah region, including Jeddah, Rabigh, Al-Laith, Al-Qunfudhah, will be affected by moderate rainfall that may lead to torrential rain, hail and high winds.
Some areas in the regions of Jazan, Najran and the Eastern Province will be affected by light to medium rain and active downward winds that raise dust and dirt, the authority added.
The directorate called on the public to stay safe and away from places which could be affected by floods or become swamped. It urged people not to swim in such places as this would be dangerous, and to adhere to any instructions issued through the media or social media networks.
Saudi Arabia’s Diriyah Co. honors winners of mosque design competition
RIYADH: Saudi Arabia’s Diriyah Co. concluded an architectural design competition for Diriyah mosques, with the participation of a number of talented male and female architects, the Saudi Press Agency reported on Wednesday
The Diriyah Mosques Architectural Design Competition aims to showcase their skills and contribute to developing the architectural landscape of Diriyah through their participation in the contest to support local creative talent in Islamic architecture and promote the development of sustainable construction.
The winners were announced during the annual Diriyah Suhoor at the Bujairi Terrace in the heart of the historic Wadi Hanifah.
Participants were invited to submit designs for two mosques in Diriyah in the Najdi style and constructed within the project’s master plan, using traditional building techniques and materials from the region.
Participating students were required to be familiar with traditional construction methodologies and apply them in their designs through this competition, which sought to achieve a set of goals to serve the local community and visitors.
The two mosques reflect the rich cultural heritage that characterizes Diriyah and the authentic architectural style of the region, as the competition is part of Diriyah Co.’s commitment to consolidating the traditions of distinctive Najdi architecture and enhancing community participation in Diriyah development projects.
A total of 170 submissions from groups and individuals were nominated for meeting the criteria set by the competition and the final stage of the competition witnessed the evaluation of the best 11 designs by the jury, which consisted of a number of highly qualified professional architects.
The evaluation criteria focused on the compatibility of the designs with the master plan for Diriyah, the design brief and their integration with the ancient heritage of Diriyah.
Three groups consisting of 12 participants emerged victorious and the winning entries were distinguished by their creativity and sustainability and their highlighting of Najdi culture and heritage.
The two winning designs for first and second place will be used in building the two mosques, which will contribute to developing the urban landscape and enabling the community to participate in the development of Diriyah.
The competition was launched in July and received widespread interest, as 539 male and female students from 31 universities took part, including 27 from the Kingdom, a university from the Gulf Cooperation Council countries and three international institutions.
A total of 296 designs were submitted by both individual and groups of three to five students.