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Thursday, January 5, 2017

2.5 million expats earn less than SR 500 and 5 million earn less than SR 1,000 a month

It is being reported that around 5 million expatriates that are currently working in the Kingdom of Saudi Arabia are earning less than SAR 1000 per month. This report comes in accordance with the official records of the Kingdom of Saudi Arabia. Upwards of 2.5 million workers of non-Saudi origin are currently receiving a monthly salary which is below SAR 500, whereas around 2.3 million foreign expatriate workers in the Kingdom earn less than SAR 1000 per month. The total number of expatriate’s workforce in the Kingdom of Saudi Arabia is around 8 million.  This news had been reported by the Al Watan Daily on Thursday and had quoted an official report which had been made by the GOSI or the General Organization for Social Insurance.



In accordance to the report by the GOSI or General Organization for Social Insurance, around 34,500 Saudis are paid less than SAR 2000 per month, where as the salaries of more than 128,000 Saudi local workers do not exceed a monthly sum of SAR 3000. It is stated that around 250,000 Saudis as well as 230,000 expatriates are currently receiving monthly salaries which are either SAR 10,000 or more. By looking at the statistics stated above, one question comes to mind. We must ask ourselves whether throwing out the expatriates from the Kingdom of Saudi Arabia is going to achieve the objectives of betterment that have been set by the government of Saudi Arabia. We must also realize that most of the local Saudi people would not like or wish to work for a monthly salary that is lower than SAR 5000 per month.



There are currently around 10 million expatriates living in the Kingdom of Saudi Arabia and it has been reported that half of these expatriates are earning a monthly salary of SAR 1000 or less than the amount. The process of Saudization that is being carried out on all the jobs in the Kingdom of Saudi Arabia does not seem like the solution that the Saudi Government wanted the alarmingly high unemployment rates of the local Saudi population.


Instead of sending all expatriates back home, another way in which this problem could be tackled would be to allow the expatriates to start businesses in the Kingdom of Saudi Arabia. This will help the Saudi market to grow immensely and attract foreign investment as well as investment from the local expatriate community living in the Kingdom of Saudi Arabia at a much higher scale than it is today. Letting people of other countries and nationalities to invest in the Kingdom of Saudi Arabia is one thing that must be done to improve the employment opportunities. For those of you who do not know what I am talking about, let me make it simpler for you.


The problem of unemployment does not look like it can be handled by emptying out jobs in the Kingdom that are held by expatriates. Instead, the Saudi Government should aim at the creation of more jobs which can be filled by the local unemployed Saudi population.

Source: Saudi Gazette

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