Mahmoud Ahmad
The proposed permanent residency, Saudi Green Card, offer to expatriate investors is welcome news. Deputy Crown Prince Muhammad Bin Salman, second deputy premier and minister of defense, who floated this possibility during an interview with Bloomberg and announced this news as one of the possibilities being considered by the government when he unveiled the Saudi Vision 2030 last week, must have come to this conclusion after deep and thoughtful consideration.
This move, according to many, will for sure benefit the country by keeping a large percentage of the money that is transferred abroad every year in the form of local investment. We all know how the country benefits when qualified foreign investors and business-driven expatriates invest in this country.
For many years, we have been reading articles almost every month in different newspapers about the growing volume of expats remittance, which is in billions of riyals. There were voices that said that transferring large money abroad would harm our economy in the long run. There were those who called for measures to curb the transfer of capital or impose taxes on the amount transferred.
While the writers have been set on a one-directional view in this regard, they did not provide an alternative or a solution. We have to note here that we have not provided them with the opportunity to invest here. I remember writing an article many months back about expat remittance saying, "So if we assume that half of what they earn is spent here, which is SR50 billion, then that is an amount the writers should thank them for spending in our economy.
“I would like to remind all, that Saudi economy is a free economy and the government cannot control those who want to send their money abroad. It is not within our rights to tell someone who earned his money by dint of hard work and sweat not to send his money back home or spend elsewhere. It is his money and his God-given right to do whatever he wants to do with it, even if he chooses to burn it."
I hope that this “Green Card” system is a step toward abolishing the Kafala system for good. This Kafala system, which was abused by many, has damaged our reputation abroad. Of course there is abuse from both sides, but the greater damage falls always on the expat worker and investor. The proposed green card will liberate the expat investor from having a sponsor that sits at home and earns a monthly income, which is a form of unfair taxation.
However, if both the expat investor and the sponsor work equally in the business then whatever share of profit comes their way will be fair, but that is not the case in most businesses where expat investors are exploited.
Some years back, I read a story of a Pakistani who was arrested after it was discovered that he had millions in his account and owned many pharmacies but in his Iqama his profession was that of a labor. Of course that is illegal but we all know that this person is an investor who had difficulty entering the country as an investor and found it easy to find a Saudi front for his cover up business. I remember many people, seeing this chicanery, at that time called to change the law so people with such business mentalities could operate openly, freely and without a partner.
There are other examples of similar undercover businesses that are in place and has proliferated over the years.
What, however, was brought to my attention is the negative reaction many people expressed toward this green card system when it was announced. Their main grievance was that foreigners would occupy the country soon. They (the expatriates) were also accused of 'wasting our wealth' and 'taking the jobs of Saudis.' Again, they view such a move as an invasion and another way of giving the foreigners full control of our market, which is not true. To such people I say you do not know or care more about the benefit of the country and the Saudi people than our own government. To such people I suggest they go back again and read Prince Muhammad Bin Salman’s vision for Saudi Arabia 2030. We need to roll up our sleeves and work and stop making excuses.
Experts in economy are in agreement that the green card system will significantly reduce the percentage of money transferred abroad. At the same time the opportunities that expatriate investors are waiting for is coming true. It is a win-win situation for both Saudis and expatriate investors. According to official statistics, SR156 billion was transferred abroad in 2015. To keep at least 50 percent of that money inside the Kingdom, will for sure enrich the economy and lead to reducing the percentage of unemployment. Unique foreign investors with a fine business mindset and advanced technology will have positive impact on our youth.
Expatriates have always been a driving force to the development of our economy. Let’s see what wonders this green card will do.
The writer can be reached at mahmad@saudigazette.com.sa
Twitter: @anajeddawi_eng
