Expat workers are leaving Saudi Arabia in droves
Biggest Arab economy is losing some of its allure to expats who once flocked to a country awash with petrodollars
Saudi Arabia’s expatriate workers are leaving the kingdom by the thousands, and the exodus may not yet be over.
As companies struggle with slower business and authorities impose more fees on foreigners, the biggest Arab economy is losing some of its allure to expats who once flocked to a country awash with petrodollars.
The number of foreign workers declined by 6 per cent to 10.2 million in the first three months of 2018 compared with a year ago, taking the cumulative drop over the five past quarters to about 700,000, according to official data released this month.
The losses in the first quarter were in sectors including construction – usually dominated by low-cost labourers – as well as trade and manufacturing.
But the data also show unemployment among Saudi nationals rising slightly to 12.9 per cent, underscoring the struggle to create jobs as the economy slowly recovers from the worst economic slowdown since the financial crisis in 2009.
Creating jobs for Saudis is a priority for Crown Prince Mohammed bin Salman, the driving force behind the country’s plan to reduce its dependence on oil.
Under the National Transformation Programme, the government targeted an unemployment rate of 9 per cent by 2020, according to data on the website of the programme.