EVERY now and then, regulations are issued without justification and interpretation, and it is difficult for us, as commentators and writers, to explain them to the public. One of those is the new residency system, and the raising of fees for residents and their families every year, until 2020. Similar increases were leveled on companies, as well.
As a consequence, a high percentage of expatriates have decided either to resign and leave the country or to send away their families and remain single. Companies already suffering from low liquidity, purchasing power, and squeezed market, in addition to other economic pressures, have resorted to deep restructuring and reduction of their workforce — Saudis and non-Saudis.
In response, critics argue that the fees won’t be collected if the expatriates choose to send away their families. Instead, we would lose their residency fees as well. Public services, food and other products and services have increased and will continue to increase their prices with the application of VAT next year. While low and middle-class citizens are compensated, expatriates will bear the full cost.
Source Credit: Saudi Gazette
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