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In spite of inflation, Kingdom retains its appeal, say expats
Published in The Saudi Gazette on 12 - 10 - 2008

THE global financial meltdown has affected the Kingdom also. The effect of one of the worst global financial crises, however, has not been as alarming here as in other countries because of the quick remedial measures taken by the central bank.
However, the vital question confronting every expatriate in the Kingdom today is: Does Saudi Arabia still remain an attractive place to live and work in view of the growing inflation?
Inflation in the Kingdom has rocketed since mid-2007, when it was 3 percent. It has crossed 10 percent in the last three months, hitting a record high of 11.1% this July.
“The income here is tax-free,” said Ardel Adward, a Filipino IT specialist in Saudi Arabian Airlines.
Azhar Memon, an Indian IT specialist, has been living in Jeddah for 15 years. He says: “If your objective to work in the Gulf is to work for a few years, make some quick savings and return home, then this place is ideal.”
The Kingdom is home to around 6 million foreign workers.
With many construction projects and commercial developments afoot across the Kingdom, the expatriates have vast possibilities in the country for many years to come, believes Arif Bari, a travel agent.
“It is likely that expatriates will be in demand for the next two or three decades, although there may be changes in the number of people employed and the type of skills required,” he said.
Sadia Kaleem, Principal of Al-Hukamah School, chose to stay in the Kingdom after her husband's death. “Life here is unique and often demanding. People living in the Kingdom show flexibility to other cultures and their requirements,” she said.
“One cannot enjoy tax-free money while also complaining about the system and the society where he is working. You will have a pleasant stay here when all legal matters, like that of Iqama, are taken care of,” she said.
But this tax-free money and low cost of living have resulted in the entry of people on the so-called “free visas.” Authorities also face a problem from those who overstay their Umrah visas to look for jobs.
Mohammed Muslehuddin, who works in Dubai, says the cost of living in other Gulf countries like Dubai is higher as compared to Saudi Arabia.
“You may get a job in Dubai within a month or two, but it is very difficult to save money. For instance, with annual housing rents reaching up to DH75,000, only a bachelor earning a monthly income of DH10,000 may be in a position to save something,” he said.
“Travelling in Dubai is arduous as driving licenses are not easily obtainable and the buses are always crowded,” he said.
Muslehuddin said obtaining a driving license requires passing at least 60 tests and can take as long as one or two years.
“Tight police surveillance on Dubai streets and frequent tolls require us to be always on guard,” he said.
“Because Dubai is an expensive place, many people are moving to Saudi Arabia,” Muslehuddin said.
Bayt.com in its Middle East Consumer Confidence Index Research report showed consumer confidence levels across the region dipping to 7 index points in Qatar and 9 points in the UAE. However, the report listed Saudi Arabia and Kuwait with 3 points each, indicating a better and much favorable situation for its residents.
Imran Basit, a Pakistani expatriate in Jeddah, said several factors have helped him get good job opportunities in Jeddah.
“A driving license, English language fluency and a job experience of minimum two years in any field will be an added advantage if you are looking for a job in Saudi Arabia,” he said.
He said a ‘Peach Tree Program' in Accounts can be an important tool before coming to the Kingdom.
Saudis are recognizing the essential role of English language in their attempts to integrate with the global economy and are actively promoting English programs.
Muhammad Azeem, an English teacher from Canada, noted that English language teachers have an easier way into the Kingdom.
“Saudis are keen to learn English for their career advancement and for everyday communications with expatriates. Expatriate teachers are working in Saudi schools, universities, offices, military institutes and private homes,” he said.
“There cannot be a better place than Saudi Arabia for Muslims to work because of the two Holy Mosques,” said Abdul Razaq, from Britain, a manager of a super market in Jeddah.
“Unlike some other places in the Gulf, you must not think of this country as a lifelong destination,” he said.
Abdul Razaq said that life in the Kingdom can be a very interesting and rewarding experience. “Saudis have a right to be given preference in their home country. Expatriates should learn to face this reality and they still can make good money and have an enjoyable stay here,” he said.
“Compensation packages for foreign workers are usually divided into basic salary, car provision or allowance, housing provision or allowance, provision of medical treatment, education for children and air tickets,” said Muhammad Imran Muhammad Jameel, a legal translator.
“In addition to their salary, contract workers are awarded an ‘indemnity' at the end of the contract period which is based on the value of the entire remuneration package including performance bonuses (where applicable),” he said.
Indemnity can be a significant amount of money for employees working in Saudi Arabia. It is an end-of-contract benefit which is required by the law to be paid to expatriate workers as a form of ‘thank-you' for being of service to the state. Indemnity or end-of-service benefit is unrelated to insurance.
“According to Article 84 of Saudi labor law, indemnity scales amount to half month's salary for first five years and thereafter one month's salary per year for all remaining years till the end of service,” said Jameel.
Entry requirements
The worker is required to present his passport, which must be valid for at least six months, an employment visa and a health certificate on arrival. His visa must have a period of validity and he must enter the country within that period. The employer and employment agency will be responsible for assisting foreigners coming to work in the country and will provide them with the most up to date requirement list.? ?Further documentation required to enter the Kingdom for work includes:?
Authorization to enter the country from the Saudi Ministry of Foreign Affairs.
A medical certificate from a recognized medical authority.
A letter of sponsorship from employee's company which should be dated and has his visa number on it.
An employment contract from the Saudi Arabian employer/company for whom employee will work
A police clearance certificate
Copies of all of employee's relevant academic qualifications and any relevant work experience for the job. This is particularly significant for anyone embarking on teaching or medical work
If employee has been working earlier in Saudi Arabia, he must have a letter of no objection from his previous employer proving that he has been released amicably from his last contract. __


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