Most for the Expatriates are worried and wanted to know about everything that the Saudi Government wants to implement in relation to Expatriates. Top most question asked by most of the expatriates is What will happen to Expatriates in the year 2018? or
What will happen after the year 2017 in KSA?
Economic experts predict that the economic distress experienced by Saudi Arabia due to the decline in world oil prices and the war in Yemen will cause huge changes in the population structure in the Kingdom. The most important of these are the departure of 2 million plus foreigners by the first quarter of 2018. Reason, they will not be able to cope with the large fees imposed by the Kingdom on their foreign dependent.
Some 2.5 million foreigners are expected to leave by the end of 2018, mostly single-family workers, which will find it difficult to cope with the cost of living, as well as other fees and taxes that the state may seek to impose on them while decreasing subsidies on fuel, electricity, cooking gas, bread, baby milk and medicines. With the beginning of July 2019 they will remain only in the Kingdom on the determination of some foreigners with high salaries and families of not more than four members.
Of course, this reverse migration will be affected by several commercial sectors in the Kingdom of Saudi Arabia, the first of which are the companies of nutrition, catering and pledges, some of which may collapse completely if they cannot withstand the economic shock in the first two years (2017-2018).
The impact from the first half of 2018 will impact the real estate market and rents are expected to fall to 50% from what they are now or even less, followed by couriers, airlines, construction companies and car dealerships.
The impact of the economic situation will not only be limited to foreign expatriates but will extend to the Saudi families themselves, who will seek to transfer their children from private schools to public schools to reduce costs, find cheaper housing with less advantages, or move from villas to apartments. There will also be a pile of new vehicles in the agencies, the used car market will rebound and prices will fall too much.
The impact of the crisis at the end of 2018 will extend to the electronics, smartphones, tablets, computers, luxury, service, maintenance and operation sectors. Hundreds of companies and institutions will be forced to withdraw from the market and close. This will lead to an increase in the pace of foreigners departing and ending their contracts. Once to separate the Saudis from their jobs in order to reduce costs and reduce the cost.
At the beginning of 2019, foreigners will not be able to afford high electricity, water and gasoline bills, as these will be subsidized only for Saudi citizens. Foreigners will look for exits and solutions such as renting homes with Saudis or transferring their cars to citizens. Dozens and perhaps hundreds of branches of foreign food chains, private restaurants such as Kentucky, Hardee’s, McDonald’s and many other activities and shops will be closed with depressed markets and few customers.
By the end of 2019, it is expected that the number of pre-used cellphones will increase, as people will not be able to afford buying new and the proportion of Saudi women working in offices, institutions and shops will increase.
The people will begin to partially adjust to the situation by the beginning of 2020 and the Saudis will have to work a lot in areas and activities they have never worked in before. There will be a huge gap between the market and the consumer, and will rid the ways of the Kingdom’s population of cars and other products. And by the middle of the same year 2020 the economy will begin to recover but very slowly and the presence, number of companies p. and institutions will be lost!
Expats may start now by carefully prioritising their priorities.