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Status correction campaign to benefit economy: Expert
Published in The Saudi Gazette on 07 - 11 - 2013


Saudi Gazette report
JEDDAH — Monday may have been a defining day for the large number of illegal expatriates caught up in a massive crackdown campaign in various parts of the Kingdom but the effects on the Saudi economy were minimal, a leading economist told Al-Riyadh daily.
The indicators of the campaign's success were obvious, according to Fadl Al-Buainain, as many violating commercial establishments have closed down and the streets are completely free of illegal workers.
Police cars on the street are a common sight, meaning that violating expatriates could be a thing of the past due to the meticulous plans formed for this unprecedented campaign.
Al-Buainain said anyone who claimed the campaign would have a negative knock-on effect was exaggerating.
He said more than a million expatriates left the Kingdom by their own choice because they were staying in the country illegally.
He said: "With their departure, the situation of the market did not change.
“This means that the illegal expatriates were only marginal manpower that had no effect whatsoever on the market."
Al-Buainain said the amnesty period had succeeded in correcting the status of millions of expatriates.
He said: "At present we are in a correctional period that is transitional and should not go beyond six months.
“Every establishment can fulfill its manpower needs and requirements within three months.”
Al-Buainain said the correctional period had helped many Saudis obtain jobs. “There are many investment opportunities for Saudis who should take advantage of these trade and occupational opportunities.”
He expected the big companies to direct their attentions toward Saudis because of the lack of the illegal workers.
He said the main beneficiary of the correction period is the Saudi economy, which suffers from inflation and unemployment.
“The inflation will be cured because the demand on goods and services will decrease with the exit of a large number of expatriates.
“This will lead to a reduction in prices that will benefit both citizens and legal expatriates.”
Al-Buainain said the government would greatly benefit from the departure of the illegal expatriates, who were a burden on the economy because they were taking advantage of subsidized services and goods.
He said: “Riyadh was suffering from a scarcity of water and energy because of the steady demand for these resources by the large number of foreigners.
“Through this crackdown we will now be able to save a lot of energy and water.”
The economist said there were 10 million expatriates in the labor market who prevented Saudis from getting jobs.
"The correction campaign will end this situation though about 50 percent of jobs occupied by the expatriates were not wanted by citizens," he said.
He said about SR130 billion used to be remitted abroad by expatriates.
"This large amount of money will now stay at home to benefit the Saudi economy," he said.
He expected the correction campaign to put an end to the financial crimes and money laundering committed by expatriates.
“The economy will be purged of tasattur operations (businesses run under the sole control of expatriates in exchange for a monthly fee paid to the registered Saudi owner).
“The smuggling and trafficking operations will also come to an end.”


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