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Sponsorship and iqama system
Published in The Saudi Gazette on 09 - 04 - 2013

This refers to the article on “Iqama without kafeel” by Saudi writer Jamal Banoon in Saudi Gazette of April 3. He identifies that the current sponsorship system has existed for 50 years; yet it permeates illegal workers in the KSA job market, which affects genuine expatriates as well as the law.
He also points out that expatriates transfer $30 billion annually outside the Kingdom. Both are valid points to be candidly and openly deliberated to modify regulations to ease the situation.
Influx of foreigners in any prospering country is a natural phenomenon. However, 100% legality doesn't exist anywhere in the world and people always find loopholes. Hence, the rules always need to be reviewed and changed.
New York Times reported that there were 11.2 million illegal aliens in the USA in 2010 and this figure was unchanged from the previous year.
The illegal workforce is the backbone of the economy due to low wages; goods and services are provided to the consumers at affordable prices. The US system absorbs law abiding, faithful and trained workers from among them almost every 10 years to regulate its job market and cater to the needs of its growing economy. As a consequence of these raids, labor shortage emanated at the Saudi ports with resultant impact of backlog of goods.
Thanks to Custodian of the Two Holy Mosques King Abdullah allowing a grace period of three months to update their status, the raids have stopped.
It's logical for expatriates to transfer their hard earned money to home country unless Saudi Arabia provides investment opportunity and safety so that their savings rotate within Saudi economy.
Sponsorship and direct iqama system can work in parallel. If the direct system is found more suitable, then sponsorship system can be abolished gradually. Expatriates who have earned credibility by working over long period can be safely upgraded under direct iqama system, and allowed to buy and sell assets freely or do small businesses; this will strengthen Saudi economy in terms of generating jobs as well.
M. A. Chishty
Riyadh


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