Financial News

Expat Teachers Win Sponsor Victory In Saudi Arabia

Concerns that the private school system in Saudi Arabia is close to collapse having prompted the government to offer work permits to the wives of expats.

Many expat wives taught in private schools until the government declared that instead of spousal or family sponsorship allowing them to take jobs, arranging the permits and sponsorship would transfer to the schools.

The result, says the Saudi Ministry of Labour, is that many teachers have given up their jobs.

Now, expat teachers will need a licence or other qualification to teach, but can retain spousal of family sponsorship.

The ministry proposed changing the rules to improve standards in schools and as part of a wider attempt by the government to control illegal immigration that has seen millions of workers without permits and visas deported.

Abu Dhabi rent cap shelved

Proposals to cap Abu Dhabi annual rent rises to 5% have been shelved by the government.

Many tenants are paying less than market rates for their homes, but a recent ruling requiring public sector workers to live within the emirate has started to push rents and property prices up.

Until the ruling was enforced in September, many workers commuted two hours each way to Dubai.

“Tenants are paying below market rates in a lot of cases, so rents are likely to increase,” said Matthew Green, head of research at property services firm CB Richard Ellis.

Statistics from local letting agents fell 8% in the first three months of 2013, and were static in the second quarter.

Oman consider expat remittance tax

Oman is considering a 2% tax on remittances expats send home as a measure to improve the state’s finances.

The main target is around 1.5 million expat low-skilled workers from Asia and the Pacific-rim nations.

The government is concerned US$8 billion is sent overseas from earnings in Oman.

Out of 4 million residents, expats make up almost half of the population.

The government is concerned that oil revenues will drop in coming years and the economy will suffer if so much money continues to be remitted abroad.

By taxing remittances, the government also feels many expats may look elsewhere to work, opening up the job market for unemployed locals.

Similar problems relating to a dependence of expat labour beset other Gulf States. The United Arab Emirates is reviewing a remittance tax for expats and Saudi Arabia has deported millions of expats in a crackdown on illegal foreign labour.

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