Saudisation policy creates "expat exodus", drop in foreign investment
locals don't want expat jobs — creating real problem for economy
capital outflows 2017 at $101b, 15% of GDP
Crown Prince portrayed himself moderniser
struggling to turn country's financial fortunes
economy suffering crisis of confidence
kingdom experiencing plunge in foreign investment
high levels of capital outflow
MBS unrealistic economic plans creates uncertainty
struggle to fill private sector jobs
growing exodus of expats
by April more than 800,000 expats left (since 2016)
foreigners cannot be easily replaced
Saudis in undemanding state jobs — 2/3 of employment
authorities want 450,000 openings for Saudis in private sector by 2020
MBS expedited exodus of expats (1/3 of population)
- levies on employing non-Saudis
- foreigners to pay fees for dependents
- restricting sectors in which they can work
- retail, service industries strictly confined to Saudis
- measures driving expat exodus
- downturn in rental real estate market, empty shopping malls.
Saudi business having difficulty getting locals to work
In May 5,000 fines issued to businesses flouting Saudisation
companies hiring Saudis, paying them small salaries "fake Saudisation"
Saudi men and women lazy, not interested in working
Saudi youth prefer stay at home
young men, women not interested in finding job
prefer to get paid for doing nothing
MBS to generate US$17.33b through new expat taxes
to help budget deficit — US$52b in 2018
foreigners' departure, loss of consumer spending
send relatives home because of fees on dependents
Taxing expatriates putting cart before horse
will take decade or more to create working class Saudis
MBS's hopes of saving public expenditure dim
ill-judged roundup of princes generated fraction of $100b target
shaking investor confidence
FDI slumped from US$7.5b in 2016 to $1.4 billion 2017, 14 year low
capital outflows in 2017 at $101b, 15% of GDP
capital flight contributed to decline in official reserves
businessmen shifting liquid assets abroad
business and FDI confidence in economy at low ebb
by Ambrose Carey, director at Alaco, London-based business-intel
My comments :
One Najib moron can sink 63 years of UMNO power.
One Clown Prince in Saudi Arabia can sink 80 years of Saudi domination of Arabia.
I think if this Clown Prince remains in power it will be the end of the Sauds.
Saudisation, economic restructuring, reforming is all just Saudi claptrap.
Oil revenues have crashed.
Saudi Arabia is bleeding billions in the foolish Yemen conflict.
The public listing of Aramco is not going to happen.
The Houthis are shooting missiles at Aramco's oil facilities.
So they are short of funds. The Saudis need money. So this whole thing about expats is just to suck more money from their foreign workers.
Out of their 30 million population, over 10.4 million are expats who live and work in Saudi Arabia.
"Saudi Arabia is 3rd ranked for having largest population of foreigners with 10.4 million expatriates"
So just this one sentence : MBS to generate US$17.33b through new expat taxes
summarises the whole story.
Arent there huge similarities between Saudi Arabia and Malaysia?
Do read again. Lets "Look and Learn".
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