Arab Today, arab today businesses want expat fee scrapped
Last Updated : GMT 20:06:19
Arab Today, arab today
Arab Today, arab today

Businesses want expat fee scrapped

Arab Today, arab today

Arab Today, arab today Businesses want expat fee scrapped

Jeddah - Arabstoday

More businesses, including real estate companies and gas station owners, have called on the government to withdraw the SR 2,400 annual fee it has levied on every expatriate in excess of Saudis in private firms. The Makkah Chamber of Commerce and Industry said the decision would not serve the purpose of employing more Saudis, but would increase prices of commodities by 15 percent and harm the national economy. “This decision is harmful to the private sector and citizens,” said Maher Jamal, spokesman of Makkah chamber. “It will not serve the purpose of Saudization, but increase cover-up trade practices,” he pointed out. Jamal said the increase in prices of local industrial products as a result of the decision would force traders to depend more on imports. “This will negatively affect national industries.” Adnan Shafi, secretary-general of the chamber, said the decision would affect all business sectors in the Kingdom and contribute to the flight of capital from the country. “Inflation could reach uncontrollable levels.” Shafi said the decision contradicted the government’s policies, as it increases prices of essential commodities and services including foodstuffs and dairy products. The chamber urged the government to consult the Council of Saudi Chambers before taking such far-reaching decisions. Meanwhile, a large number of businessmen gathered in front of the Labor Office in Khafji, demanding the decision’s withdrawal. Hamad Al-Suwaier, chairman of the national real estate committee at the Council of Saudi Chambers, said the new levy would increase building construction costs in the Kingdom, raising the prices of houses. He said the measure would have a negative impact on the implementation of new housing projects across the Kingdom. “The real estate companies will be forced to increase the prices of housing units to meet these additional expenses,” Al-Suwaier told Al-Jazirah Arabic daily. “Finally, it is the consumer who will have to bear the cost inflated by the new expat fee,” he pointed out. He said the decision would negatively affect small and medium enterprises (SMEs), service providers and contractors. Abdullah Al-Maghlouth, a real estate operator, agreed with Al-Suwaier’s views, saying the ministry imposed the decision without considering its negative implications. He said the decision would increase prices of building materials by 20 percent. “It will affect industry, agriculture, trade and construction, and in the end the victim will be Saudis.” Al-Maghlouth said the ministry should have conducted detailed studies on the decision’s impact before executing it. “I am afraid many SMEs will be closed down as a result of this hasty decision,” he added. However, he pointed out that the decision would encourage small entities to merge together to establish bigger firms to help them bear the additional expenditure. Al-Maghlouth estimated the total losses to be incurred by Saudi companies as a result of the decision at more than SR 3.5 billion. He said the contractors would demand more money to implement projects because of an increase in labor cost as well as construction material cost. “When the contractors calculate the huge expenditure, they would think there is no point in continuing with these projects,” he said, and urged higher authorities to stop implementing the decision. He said the contractors, like other businesses, have been paying many fees such as SR 500 for residency permit, SR 250 to the Human Resources Development Fund, SR 100 for work permit and SR 600 for social insurance for each employee, in addition to the recruitment fee. Riyad Malik, chairman of the national committee for gas stations, said 95 percent of workers in the sector are non-Saudis. “It’s impossible to Saudize 50 percent of workers in petrol pumps,” he added. Gas station companies will suffer a loss of SR 48 million as a result of the new decision. From : Arabnews

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today businesses want expat fee scrapped Arab Today, arab today businesses want expat fee scrapped

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today businesses want expat fee scrapped Arab Today, arab today businesses want expat fee scrapped

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
Arab Today, arab today Seeks to move past rift with Israel

GMT 08:00 2017 Monday ,08 May

Seeks to move past rift with Israel
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday