Expats Dependent Fees – Impact on Saudi Economy

Expat Dependent Fees started in the year 2017 and after that Expatriates have started to send their families to their home countries. Expat dependent Fees with SR 400 a month in 2018 and will increase each year to reach SR 800 by 2020 with a total cost of SR 9,600 per year per worker.

Expat Fees has impacted the expatriate population as well as the companies in which with many expat workers are working. Many expats have left their jobs and have sent their children and families back home and these traumatic experiences have serious consequences on expat and their family lives.

Expats Dependent Fees – Impact on Saudi Economy

But the Economy of the Saudi has been improved starting 2017. Saudi Ministry of Finance expects 57 Billion Saudi Riyals in the year 2019 compared to year 2018 (i.e. 28 Billion Saudi Riyals).

I noticed that when these fees were levied, the unemployment rate did not go down; in fact it increased. Moreover, expat remittances have not declined, but have increased slightly in the past few years. The fear of these fees has caused the private sector to shrink. At this stage we need to activate the private sector so that Saudis can work in the professions that have been Saudized and targeted by expat fees.

If expat workers remain at their jobs, the cost of expat fees will be transferred to the consumer, similar to any other charges that are imposed suddenly. This will cause prices to increase. Any study conducted on expat fees and their implementation will benefit the general public whether in the private or government sector and will achieve national goals.