They are selling low-quality and sub-standard products, most of them counterfeit ones, at cheaper rates. Some of these products are hazardous to the health of consumers, according to a report in Al-Riyadh Arabic daily.
Saad Al-Sheikh, member of the Shoura Council and senior economist at National Commercial Bank, recently disclosed that the volume of money sent home by foreigners would hit the SR100-billion ($26.6 billion) mark in a few years. He also warned that this would produce an adverse impact on the national economy, especially the Kingdom’s trade balance. As a measure to curb this phenomenon, he suggested taxing foreigners in addition to hiking recruitment fees.
Also, a specialized study carried out by the Asharqiah Chamber in the Eastern Province attributed the huge flow of foreigners to Saudi labor market to factors including mismanagement in the labor market and an expanding black market of labor, as well as some social and cultural factors pertaining to Saudi society, such as the defective perception of young Saudis toward some vocations and trades and the absence of women in most of the labor market.
The study showed that the issue of runaway workers was an isolated one in the beginning. Later the issue developed into a major social and economic phenomenon. It has also become part of a big phenomenon of illegal workers, about whom there are not any exact figures.
The actual figures of trades in which they have been engaged or the volume of money they are transferring to their home countries are also unknown.
These runaway foreigners are working at projects and firms owned and operated by Saudis other than their sponsors. Some of them work under their fellow foreigners who engage in businesses in the name of Saudis. Yet another section of these workers move about freely seeking jobs and earning money for themselves, the study pointed out.
Abdurahman Al-Sanie, an economist, said there has been a huge increase in the number of illegal trade and commercial activities run by foreigners. It is estimated that the volume of sales by these illegal traders and street vendors reached about SR2.85 billion ($759 million) annually in Jeddah alone.
“These trades, including the shadow markets where counterfeits of famous international brands are available at cheaper rates, would harm the Saudi economy in the long run,” he said.
According to Al-Sanie, a large number of foreigners are engaged in the so-called “bag trade” — carrying products in bags to sell them in public places as well as on the sides of major thoroughfares and market places.
“These traders include Haj pilgrims from some countries, especially those from Central Asian states. They bring goods as part of their baggage without paying any customs duties. Also, they need not pay any rent for showrooms, so they can sell them at cheaper rates after displaying them at public places and roadsides,” he said.
On his part, Salem Banaja, professor of accounting at Taif University, warned against the thriving bag trades in various cities in the Kingdom.
“These traders display their duplicate and low-quality products, and lure customers with comparatively cheaper rates. These goods, some of them expired, are hazardous to health,” he said while urging the Consumer Protection Committees to intensify monitoring of these traders. “The committees should also launch awareness campaign among consumers against dealing with these traders as well as to notify authorities about such traders,” he added.
