Expatriates in Saudi Arabia seem to be lucky when compared to their counterparts in other parts of the world. While countless surveys this year reported that expatriates in other countries were feeling the pinch of the recession, some even considering relocating to their homelands, they also noted that the Kingdom's expats were more stable and were staying put. “There is macrostabilty in the Kingdom due to the wise economic policies of the government and good regulation of the consumer commodities market. Moreover, it is a tax-free economy and the expats' income is exempted from Zakat,” said Israrul Haque, lecturer of Economics, Finance Health Care at Batterjee Medical College. He was commenting on this year's Expat Explorer survey, the world's biggest expat survey by HSBC, which revealed expats in Saudi Arabia (who placed 3rd of the 26 countries) are saving more and have high annual salaries and disposable income (gross income minus income tax) available, while stating that expats in the UK and the US had reduced their spending and were considering a move home. Haque said expats here did not have to face high prices due to recession, “except in some imported goods and accommodation”, and, the education sector. “There is no provision for expat students to go to universities and those that have opened for expats are expensive, especially for expats from the subcontinent,” he said. Asked what the best mode of savings is for expats, Haque suggested that real estate investment was ideal, “especially for Indians, as in India, the value of apartments is on the rise. It amounts to a regular income plus appreciation of the property itself,” he said. He said gold is not a very solid investment as “when it is converted to jewelry, which women prefer, there is loss in terms of depreciation and hence, doesn't give a real payoff”. The better option, Haque said, would be to invest in pure gold. In view of the sliding US dollar, he advised expats from India to save currency in Saudi riyals or Euros, while those from Pakistan, Sri Lanka, Nepal, Bhutan, “will not be losers if they save even in the US dollar due to their respective countries' economies,” he said. Haque said a third savings and investment option is to have entrepreneurial partnership activities back home. “With trustworthy partners, expats can initiate medium-scale enterprises in their home countries,” he said. Appealing for the scrapping of the sponsorship system in Saudi Arabia, Haque said a free movement of capital, technology, and labor – which is one of the elements of globalization – would mean further growth for the Saudi economy. “Moreover, there must be provision of the family status for all expats. Having one's family here would mean fewer remittances which means the money remains in the Kingdom. Moreover, people would be more productive with less emotional stress,” he said. He said moving home to obtain an economic advantage can be a bad idea for expats in the Kingdom. “The Saudi market is more structured and protected compared to the dynamic markets of other countries. If expats are moving home, they may not be able to adapt to the hard conditions – both physical and geographical. And the influx of expats might be a burden on growing economies, such as, India and Pakistan,” said Haque, adding that if an expat does relocate, he may be socially advantaged and obtain greater career satisfaction “if he is very career-oriented”. “However, I prefer long-term stability (as in Saudi Arabia) rather than short-term growth (in other countries),” he added. Given the estimated growth of the Kingdom's population to 45 million by 2025, expats, Haque said, have much scope in construction, education and other private sectors, and will continue to remain in demand for another ten years. “Expats are preferred due to their dedication, responsible attitude and ethics and because they are good learners. They are certainly not a threat to the local people,” said Haque, who has lived here for 17 years, adding that the Kingdom is like a second home to expats like him. He listed for Saudi Gazette a number of factors that must be kept in mind by expats in terms of better money management. “One should avoid a vulgar display of wealth and not compete with others in this regard; invest in quality education; do more charity; save for safety nets; construct modest programs to exchange religious knowledge; and last but not the least, sponsor at least one Muslim family – their education, medical expenses, etc.,” Haque noted. Mirroring Haque's views, LeeLiang Makin, 55, a British national and ex-Singaporean, who has been living in Saudi Arabia for 10 years, said: “The recession has not affected me, and on the contrary, I have increased my spending, i.e. providing gifts for those I work with and love. It is more blessed to give than receive.” Makin, an administrative assistant at King Saud Bin Abdulaziz University for Health Sciences, Riyadh, said if she could live here forever, she would indeed. “I am neither in debt nor have any loans. Since food wise so cheap and I am provided with free accommodation, I feel I live a life of immense pleasure, and the fact that there are no taxes adds to those pleasures,” she said.
