Saudi Arabia’s suggestion last month that it will try to limit how much money expatriate workers send home showed concern about the cost of having foreigners make up nearly a third of the population.

An estimated nine million foreign workers and their dependents remitted SR26.8bn ($7.1bn) out of the country in the second quarter of this year, central bank data shows. That amount was equivalent to 17 percent of Saudi Arabia’s current account surplus at a time of historically high oil revenues.

With the stability of the global financial system threatened by the euro zone debt crisis, and Saudi Arabia keen to use more of its monetary resources domestically under a $130bn government spending plan announced this year, the outflow of funds may be starting to look uncomfortably large.

Saudi Arabia, which wants to develop its economy to reduce its reliance on oil revenue, also appears to be waking up to the opportunity cost of having so much economic output produced by foreigners, most of whose money is not spent or invested within the kingdom.

“The balance of payment considerations are obviously a risk, and they are a structural risk in that if oil prices come down, they would become a challenge,” said Jarmo Kotilaine, chief economist of National Commercial Bank in Jeddah.

“But the Saudi economy has gone through a number of rough patches over the decades without compromising the basic stability of the monetary situation.”

He added, “It’s not an unmanageable problem, but the issue is the opportunity cost of the remittances. Many residents live here for the pure purpose of making as much money as they can and sending as much of it back home to their families as they can. That money isn’t being used to stimulate domestic economic activity.”

Expatriates account for nine out of 10 private-sector jobs in Saudi Arabia, the world’s top oil exporter. They fill roles that range from domestic service and factory work to management positions in large finance companies.

The value of their remittances has almost doubled in the past five years from an officially recorded SR15.3bn in the second quarter of 2006. Three economists said the true figures for money outflows were probably much higher because they did not include informal transfers.

“In practice, when oil prices are high remittances go up, and when oil prices fall, remittances go down automatically because employment falls and new recruitment falls,” said Khan Zahid, chief economist of Riyad Capital.

Labour Minister Adel al-Fakieh said in an Oct 22 television interview that the Labour Ministry was “preparing a monitoring programme aimed at reducing the huge quantity of transfers of foreign workers”.

He did not elaborate, and economists said it would be difficult to develop practical measures to limit remittances, partly because money can be taken out of the kingdom in many different ways.

Most of the money is thought to be remitted by lower-paid workers, most from South and Southeast Asia, who frequently carry cash with them on trips home rather than making formal bank transfers….Next

Ritz-Carlton is to open its first hotel in Saudi Arabia this month, the luxury operator said yesterday.

The hotel in Riyadh, which has 493 rooms, is near the capital city’s diplomatic quarter.

The property was “envisioned as a royal guest palace for visiting dignitaries and heads of state”, Ritz-Carlton said.

Analysts say that luxury hotel operators are keen on Riyadh to cater for demand as the city gains in regional and international prominence. Fairmont and Four Seasons also plan to open hotels in the city.

Average room rates in Riyadh increased by 6 per cent in August to US$223 (Dh819.07) compared with the same month last year, while Jeddah had a 5.3 per cent increase to $216.32, according to data from the research company STR Global.

The hotel, which has 600-year-old olive trees imported from Lebanon, is scheduled to open on October 24.

[Show as slideshow]

[View with PicLens]

12►

Nasair held an Open Day in Riyadh, KSA to recruit Saudi Nationals looking to join the company as flight attendants. Candidates hoping to join the team were received and greeted by Nasair representatives, and were given the opportunity to discuss their career options and the benefits of working for Nasair.

Naiem Al Shabanah, Executive Director of Group HR & Administration, NAS Holding said, “Nasair – the first Saudi low fare carrier – is committed to giving back to the community, and we are continuing to employ Saudi youths following the Company’s strategy that supports the Government’s effort in employing the Saudi nationals.”

He continued to comment, “Today we see many young Saudi’s wishing to join the aviation, travel and tourism industry as it flourishes and grows in the Kingdom, and we are here to provide for this need by offering these individuals a career as accomplished cabin crew members with an international lifestyle, great benefits and an environment in which they can hone their skills and develop their talents. This is a truly local effort coming within a strategy to recruit 150 during the coming period. We are investing in our national youth strongly and we wish to continue to strive in this arena as we grow our award winning team.”

At the open day, Mohammed Saeed Al-Ghamdi, Specialist, Crew Recruitment for Nasair, presented details of the training, benefits, job descriptions, minimum requirements and opportunities to assist the attending candidates, aged 19-25.

Nasair hopes to recruit 30 new staff and identify additional future candidates from this successful event to expand its evolving team and commit to its internal vision of having the best team of people to serve its growing base of Customers domestically and abroad.

For more information Visit FlyNas.com

DUBAI: Saudi Arabia could shortly open its stock exchange to foreign investors, Deutsche Bank’s head of MENA equities said, a move which would allow international capital to own shares outright on the Middle East’s largest bourse for the first time.

Alarmed by a predominantly expatriate workforce in Saudi Arabia sending large money transfers outside of the country, the Saudi Labor Ministry has said it will introduce a “salary protection” program to boost its domestic economy.
The new program will dictate the amount an expat working in Saudi Arabia can send back home, the Saudi labor minister, Adel Fakih, said. Expats must keep the bulk of their salaries within the country under the new program.

Saudi Arabia is the top ranked country in the Middle East for the ease of doing business through regulatory reforms, a World Bank report has said.

Out of 183 economies around the world, the Gulf kingdom was ranked 12th in the Doing Business in a More Transparent World report.

It ranks the economies in 10 areas of business regulation, such as starting a business, resolving insolvency and trading across borders.

The report said that Gulf countries had introduced nine reforms between them during the past year – eight of which improved business regulation and one that made things worse.

Globally, the study showed that governments in 125 economies out of 183 measured implemented a total of 245 business regulatory reforms — 13 percent more reforms than in the previous year.

While Singapore, Hong Kong, New Zealand, United States and Denmark were ranked the best five economies for doing business, all the Gulf nations were in the top 70.

The UAE was second in the Middle East region, coming 33rd up from 35th last year, Qatar was placed 36th from 38th in 2011, Bahrain 38th (33rd), Oman 49th (53rd) and Kuwait 67th up from 71st.

Oman was the most active Gulf economy in the past year with three reforms, according to the report.

It said the sultanate introduced an online company registration, reducing the time it takes to register a business.

It also improved its credit information systemby launching the Bank Credit and StatisticalBureau System, which collects historicalinformation on performing and nonperforming loans for both firms and individuals.

The report also said Oman enacted a new income tax law that redefined the scope of taxation.

Qatar made starting a business easier by combining commercial registration and registration with the Chamber of Commerce and Industry, the report said.

Qatar also improved its credit information system by starting to distribute historical data and eliminating the minimum threshold for loans included in the database.

But the Gulf state was guilty of making dealing with construction permits more difficult by increasing the time and cost to process building permits, the study said.

Saudi Arabia made starting a business easier by bringing together representatives from the Department of Zakat and Income Tax and the General Organisation of Social Insurance to register new companies with their agencies.

The report said the UAE also made starting a business easier by merging the requirements to file company documents with the Department for Economic Development to obtain a trade licence and to register with the Dubai Chamber of Commerce and Industry.

The UAE also improved its credit information system through a new law allowing the establishment of a federal credit bureau under the supervision of the central bank.

Augusto Lopez-Claros, director, Global Indicators and Analysis, World Bank Group, said: “At a time when persistent unemployment and the need for job creation are in the headlines, governments around the world continue to seek ways to improve the regulatory climate for domestic business.

“Small and medium businesses that benefit most from these improvements are the key engines for job creation in many parts of the world.”

Against the backdrop of the global financial and economic crisis, more economies strengthened their insolvency regimes in 2010-11 than in any previous year.

Twenty-nine economies implemented insolvency reforms, up from 16 the previous year and 18 the year before. (arabianbusiness.com)

Riyadh: Smart cards to pass through passport control have been launched at two major airports in the kingdom and will soon be available for citizens and expatriate travellers at other airports in the country.

This was the announcement made by Lieutenant General Salim Mohammad Al Blaihid, Director-General of the Passports Department, at a press conference here.

Al Blaihid said the computerised cards will be free of charge. They can currently be used at five gates at King Khalid International Airport in Riyadh and four gates at King Fahd International Airport in Dammam.

The Director-General of the Passports Department said the next stage will be to make the cards available at King Abdul Aziz International Airport in Jeddah. They will then be implemented at all other airports in the kingdom. There will be no registration forms needed for users of the cards and they can only be used at airports.

The cards will be granted to all citizens and expatriates. No one will be excluded from this project except those who have committed security offences, said Al Blaihid.

Digital map service

He said the cards will be made available at airports and various markets. Al Blaihid disclosed that training courses are being held for Directorate General of the Passports Department staff to deal with the public

Every pilgrim, on arrival at any of the kingdom’s airports, seaports or border posts, will receive a digital smart card with all information of the pilgrim saved on it, the General Cars Syndicate also told reporters yesterday.

A digital map service will also be launched to monitor buses on the internet and detect technical glitches, breakdowns, and if buses are abiding by the routes assigned to them. This is to keep a check on the performance of 17 transport companies that are providing 19,000 buses during this Haj season.

Through these measures, the Syndicate aims to reduce bus breakdowns and the time required for repairs, as well as streamlining the movement of pilgrims between Makkah, Madina and the holy sites.

The Syndicate plans to operate 120,000 trips for pilgrims between the holy sites and Makkah and Madina during the pilgrimage season. The plan will be put into operation by nearly 30,000 supervisors, members of administrative and technical committees, drivers and maintenance workers.

The focus of the Syndicate’s new transport plan is to ensure pilgrims perform their Haj rites with ease, comfort and peace of mind. Authorities are making use of the latest means of technology to streamline the process of receiving and correctly dispatching pilgrims to their residences.

Ritz-Carlton is to open its first hotel in Saudi Arabia this month, the luxury operator said yesterday.

The hotel in Riyadh, which has 493 rooms, is near the capital city’s diplomatic quarter.

The property was “envisioned as a royal guest palace for visiting dignitaries and heads of state”, Ritz-Carlton said.

Analysts say that luxury hotel operators are keen on Riyadh to cater for demand as the city gains in regional and international prominence. Fairmont and Four Seasons also plan to open hotels in the city.

Average room rates in Riyadh increased by 6 per cent in August to US$223 (Dh819.07) compared with the same month last year, while Jeddah had a 5.3 per cent increase to $216.32, according to data from the research company STR Global.

The hotel, which has 600-year-old olive trees imported from Lebanon, is scheduled to open on October 24.

The Ritz-Carlton Abu Dhabi, Grand Canal, is expected to open at the end of this year or early next year, Ritz-Carlton has said.

“We will potentially look at Abu Dhabi with a second property because we think the market is a very promising market in the long term,” Pascal Duchauffour, the vice president of the Ritz-Carlton Hotel Company for Europe, Middle East and Africa, said recently.

With the growth of women’s travel in the region, boosted by the increasing number of travelling businesswomen from across the Arab world, Four Seasons Hotel Riyadh at Kingdom Centre is the first in the Kingdom’s capital to develop and offer a Female Traveller Program that is designed to meet the unique needs of the female guest.

Already the premier choice of discerning female travellers who appreciate the personalized service that is the hallmark of Four Seasons Hotel Riyadh, the Hotel’s Female Traveller Program complements the extensive range of superior services that are globally recognized as standard at Four Seasons Hotels and Resorts throughout the world.

“The greatest care and thought has been applied to developing this customised program based on anticipating what a women needs and wants on her travels and taking into consideration practical requirements while still paying attention to all the little details, resulting in relevant and intuitive service that can enhance the businesswoman’s experience at Four Seasons Hotel Riyadh,” says Tarek Bekhiet, director of marketing, Four Seasons Hotel Riyadh at Kingdom Centre.

As a fundamental part of the program, all rooms allocated for female guests are located as close as possible to the elevators, as part of the Hotel’s guest privacy policy.

Upon arrival to their room, women guests receive a welcome call from a female member of staff as well as a welcome note from the General Manager. Each room features a private bar stocked with healthy snacks, a selection of women’s magazines, while fresh flowers are provided on a daily basis. Other thoughtful touches include a sachet of pot pourri in the clothes closet, grooming amenities and soothing lotions, as well as therapeutic Dead Sea bath salts and flowers by the bathtub.

Abayas are provided on request from the concierge desk, while for the health-conscious, Four Seasons Hotel Riyadh has a separate female fitness facility complete with treadmills, step climbers, weights and other state-of-the-art equipment.

Now, female travellers visiting Riyadh can look forward to a stay experience enhanced by unrivalled service that is the ultimate in personalization.