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The negative impact of illegal workers
Published in The Saudi Gazette on 19 - 07 - 2012


Aliya Al-Shalhoub
Al-Riyadh newspaper
RIYADH — A recent study revealed that the fraudulent visa market in the Kingdom is worth approximately SR2.4 billion per annum. The study, which was conducted by economist Hamid Al-Mutairi, further suggested that this figure can potentially impact the local labor market and the national economy. Moreover, the Saudi economy is drained by approximately SR104 billion through annual expatriate remittances, which further affects the national economy.
The study estimated that the illegal workers earn annual revenues which amount to approximately SR4.5 billion. It also pointed out that around 30 percent of legal workers are working in more than one authorized business. An alarming discrepancy revealed by the study was that while foreign workers earned approximately SR56 billion, remittances exceeded SR100 billion. The difference between the two figures represent revenue earned through concealed economic activity.
During the period 2000 to 2008, the number of illegal workers in the Kingdom increased by an average 1.2 million per year. These illegal expats constitute 27 percent of all legal workers, a figure which matches the number of Saudi youths who are unemployed and registered with the Hafiz unemployment allowance scheme.
Mutairi contends that the unemployed youth could replace the illegal expats and boost the economy, a move which should be handled by the concerned agencies. Citizens who aid illegal residents for profit are unaware of the immense negative repercussions their actions are causing to the economy. The Kingdom is already suffering a crisis in the labor market, which is best illustrated by the thriving black market for runaway domestic workers who charge exorbitant rates during Ramadan.
This is a major issue, and if not addressed may result in significantly weakening our economy and could drag the country into unforeseen social and economic turmoil.


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