Decline in expat workers continues as Saudization measures kick in: Jadwa

The total number of expatriates in the Saudi labor market has declined by around 1.1 million since the start of 2017, with 312,000 leaving the market in the second quarter (Q2) of 2018, said a recent report from Jadwa Investment.

In July 2018, expat dependent fees doubled from SAR 100 to SAR 200 per dependent per month, increasing the costs borne by foreigners in the local labor market, and likely leading to a higher number of final exits, noted the report.

It further revealed that the Kingdom saw its highest number of expat departures on a quarterly basis in Q2 2018.

The data also showed that all sectors saw a drop in the number of expat workers, with construction being the worst hit losing around 187,000 workers, followed by trade with 65,000.

“The biggest share of foreign labor who have left the market in Q2 2018 continue to be the workers earning less than SAR 1500 per month on average. These workers range between construction, trade, education, and agriculture sectors,” the report said.

“For the second half (H2) of 2018, this range is expected to widen, especially within the trade and retail sector, as private sector enterprises are supposed to comply with the new Saudization measures that commenced in September 2018 in three gradual stages through 2018-2019,” it further added.