Overview of Expats Travelling to Saudi Arabia
Every year, a vast number of foreign nationals venture to Saudi Arabia to pursue career opportunities, visit family, or engage in tourism. Although Saudi Arabia has, in the past, been associated with severe restrictions on travel, recent reforms in the kingdom have opened up the doors to foreign visitors.
In many ways, Saudi Arabia has become a hub connecting the East and the West. As a result, the country’s multicultural atmosphere and its vibrant expat population have grown exponentially in recent years. So, just how many expats travel to Saudi Arabia every year?
Data Showing the Number of Expats Travelling to Saudi Arabia
Foreign expatriates in Saudi Arabia reached 9 million by the end of 2019, according to data from the General Authority for Statistics (GAS). This number is in comparison to 8.7 million the previous year – a difference of 300,000 foreign expats.
Based on GAS statistics, the number of expatriates entering Saudi Arabia increased by 4 million between 2010 and 2019. During this period, the country saw its population double from 18 million to 36 million, with one-third of the total population becoming foreign expatriates.
The majority of foreign employees in Saudi Arabia originate from countries in South and East Asia. 36 percent of expats are from Asian countries, such as India, Pakistan, Philippines, Sri Lanka and Nepal. Meanwhile, the rest are divided among the Middle East, Africa, Europe, North America and Australia.
Reasons Why Expats Travel to Saudi Arabia
Living in Saudi Arabia offers expats a number of advantages. Tax-free salaries, golden visas and good medical care top the list. On top of that, Saudi Arabia is an attractive destination for its developing opportunities, relaxed lifestyle and cultural attractions, especially in the form of the two Holy Cities: Mecca and Medina.
With a low cost of living, like the lack of income tax, low fuel prices and other affordable expenses, the kingdom has become a highly attractive destination for expats. Additionally, if expats satisfy the golden visa requirements, they can receive a multiple-entry visa that’s valid for five years, creating a comfortable and smooth transition to Saudi Arabia.
Moreover, higher salaries are often offered to expats in order to attract the best international talents. On average, expats receive 25 percent more than the equivalent Saudi national. These financial benefits allow them to make larger investments, live in more expensive houses and experience the best Saudi has to offer.
Contributions to the Saudi Economy
Foreign employees in Saudi Arabia come from outside the country to pursue jobs, skills and qualifications. The country’s government-supported visa programs and relaxed visa regulations have made it easier for foreign nationals to live and work in the country.
As a result, foreign employees significantly contribute to the Saudi economy. They provide labour in sectors such as construction, banking, commerce, petroleum, engineering, healthcare and education. In addition, they invest, expand businesses and create more jobs. In 2017, expats employed in the private sector provided a contribution of 8 percent to the Gulf country’s GDP.
Impact on Saudi Nationals
The increase in foreign employees has had a direct impact on employment opportunities for Saudi nationals. The increased competition from expats for jobs has made it difficult for them to find suitable employment in certain sectors of the economy.
Furthermore, due to the influx of expats to Saudi Arabia, wages for Saudi nationals have dropped significantly. This has caused frustration among some Saudi nationals, particularly those who may be underqualified for certain positions. There have been calls for government intervention to ensure equal employment opportunities for Saudi nationals.
Governmental Reforms and Policies Aimed at Expats
To address the issues discussed above and maintain population growth, the Saudi government has enacted a number of reforms and policies. It has adopted an expansive Vision 2030 reform program to modernize its economy, reduce its dependence on oil, and create employment opportunities for Saudi nationals.
In addition, Saudi Arabia has also proposed new labor laws that restrict the number of foreign employees in certain industries. These policies are aimed at allowing more Saudis to have access to higher paying jobs, while providing foreign workers with incentives to apply for positions.
The kingdom has also tightened its visa policies and has offered incentives to employers who hire more Saudi nationals. The Ministry of Labor and Social Development has implemented the Nitaqat program to encourage businesses to recruit Saudi nationals.
Closing of Border Borders and Expat Departure
The closure of Saudi Arabia’s borders in 2020 in an attempt to mitigate the spread of Covid-19 has had an impact on expats living in the country. With an influx of expats leaving the country due to the global pandemic, businesses that depend on expat labour have been affected as well.
The health crisis has caused many expats to think twice about returning to Saudi Arabia once travel restrictions are lifted. For example, many expats from India have decided to stay in their homeland instead of returning to the Gulf kingdom as they’re uncertain about their job security, financial situation and other legal matters.
That said, according to reports, Saudi Arabia is expected to open its borders and resume international travel by the second quarter of 2021.
Expats’ Future in Saudi Arabia
While the future of expats in Saudi Arabia is uncertain at the moment, expats still play an important role in the economy. The Kingdom’s economic development depends heavily on foreign employees. With that said, the government is taking steps to ensure the long-term success of the foreign workforce.
Saudi Arabia is recognizing the need for further diversification of its economy and workforce in order to continue its economic growth and development. In addition, the government is still taking steps to provide security and incentives to foreign expats in the form of job stability, insurance and other benefits.
Saudi Arabia remains to be a highly attractive destination for expats due to various economic benefits. However, the government has to continue making efforts to ensure that expatriates are treated fairly and given equal opportunities, while balancing the interests of the local population.
Impact on International Relations
The foreign expat workforce positively affects the country’s relations with other nations. Since many expats come from India, the Philippines and other countries, there is an opportunity for strengthening international trade relations and collaborations between the countries.
The growth of the expat population brings with it a growing number of interactions between different cultures and organizations. This provides an excellent opportunity for Saudi Arabia to bridge the gap between Western and Eastern societies and enhance its business prospects with other countries.
The presence of foreign expatriates helps to create an atmosphere of international acceptance and tolerance. As such, it can also be seen as an opportunity for Saudi Arabia to improve its international image and showcase its progress in an increasingly globalized world.
Pros and Cons of Expat Population Growth
Overall, the increasing number of expats in Saudi Arabia can be seen as a lucrative opportunity for the country’s economy. The employment of foreign nationals can bring in valuable skills, allocate capital and create employment opportunities. However, there are still some considerations to make.
The growth of foreign expatriates could lead to further inequality and potential resentment among the local population. In addition, while expatriates are essential for the growth of the economy, the government has to ensure that they are treated fairly and given the same opportunities.
As such, it is important for the country’s government to continue fostering an environment of acceptance, respect and appreciation of its expatriate population while also looking out for the interests of the local population.
