JEDDAH — Remittances by expatriate workers in the Kingdom reached SR129 billion a year, according to Minister of Economy and Planning Muhammad Al-Jasser. To find out the reasons behind the recent jump in remittances by expatriate workers, Okaz/Saudi Gazette spoke to a number of experts who gave their opinions on what can be done to encourage expatriates to invest their money in the national economy instead of sending their earnings abroad. Economic consultant and member of the committee for consultancy offices and economic studies at the Jeddah Chamber of Commerce and Industry (JCCI) Ahmed Abdulaziz Al-Hamdan said the rectification of the status of expatriate workers has contributed greatly to the increase of remittances because a large percentage of these expatriates had invested huge amounts in coverup (tasattur) business operations. “When the rectification period started, they had no choice but to repatriate their capital back home. One solution to address the problem of capital flight is to ask all expatriates to open bank accounts as their remittances can be monitored closely by the authorities and sources of the money will no longer be hidden,” he said. Al-Hamdan alleged that many expatriates come to the Kingdom on work visas and after a short while they start businesses and become employers, instead of workers. “If we study the issue meticulously, we will find that the majority of grocery stores, polyclinics and services shops have Saudi nationals as owners but they are actually run by expatriates who pay a fixed amount to the Saudi owners,” he said. Economist Hamad Al-Battal said remittances by expatriate workers are a result of the developmental work they carry out. He added that rectification period caused panic among expatriates, forcing them to repatriate all their savings back home as a precautionary measure in the event that they are caught and deported. “Citizens play a role in the increase of remittances because many do not want to work and instead allow expatriates to use their names to run tasattur businesses,” he said.
