Expats working in the private sector in Saudi Arabia are paid half the salary of Saudis in the same job, according to new research.
Although expat salaries surged upwards by 25% last year and those of Saudis came down 1%, a huge gulf remains between the two.
Statistics from the Saudi Labor Ministry and the Saudi Arabian Monetary Agency revealed the wage gap applies across all jobs.
The report gives some examples –
- Secretaries and administrators are paid an average salary of SR4,300 against SR1,640 for expats
- Sales and marketing posts are paid SR3,200 against SR1,200 for expats
- Engineers are paid SR4,800 against SR1,000 for expats
According to the monetary agency figures, the average salary of private sector employees is SR2, 962.
Women take more jobs
The study also showed the number of Saudis working in the private sector rose by 332,200 (29%) in 2013. The number was boosted by mainly women accounting for 182,700 (85%) of the posts, while Saudi men filled 149,500 (16%) of roles.
Overall, said the report, out of 20 million Saudis, almost 400,000 women and 1.1 million were in work last year. The rest of the posts were filled by expats.
A separate report Saudi Arabia’s black economy is costing the country ‘billions’ every year.
The black economy, explains the government report, is economic activity that does not contribute to the country’s gross domestic product (GDP).
The study, carried out across several Middle East countries, puts the loss to the Saudi economy at SR400 billion a year – estimated at around 30% of the economy.
Much of the problem is attributed to unlicensed businesses, especially in the food industry.
Black economy
“Many food producers believe they comply with the law by putting a sell by date on their goods, but this is not the case,” said the report. “They also need a permit and licences.”
Expat families are blamed for the underground economy.
The report argues that unemployed expat wives and children cook food at home for selling on to friends, shops and restaurants.
“This must be addressed because not only is the country losing money in taxes, but some of the food is produced in unhygienic kitchens and carries a risk of causing illness or food poisoning, especially if sold by street vendors.”
The report, written by Saad Al-Buainian, urges the Saudi government to take action to crack down on illegal businesses.
