The recent disclosure during a Shoura Council session that as many as one million Saudis may have emigrated from Saudi Arabia to foreign countries will come as a shock if the numbers are correct.
It seems the number one million is exaggerated since we are talking about a country of 16 million Saudi citizens. But even if it's a fraction of 1 million it still remains a figure that should cause concern since immigration to the West or even to another Arab country is a foreign concept to Saudis. Saudi citizens may live in countries like the United Arab Emirates or Egypt but they are less likely to stray farther. But to seek citizenship or legal residency in a foreign country seems implausible.
What is likely, as one Saudi economist told an Arabic-language newspaper, is that rather than “people emigration” it’s “money migration.” Saudis moving temporarily to a foreign country to invest or to start a business is a more likely scenario than leaving the Kingdom for greater freedoms or a better living environment. It’s estimated that 100,000 Saudis live in the UAE. They chose the UAE as their home not to become an Emirati citizen, but because the UAE is business-friendly with less bureaucratic hassles and a streamlined permitting process.
Cairo has a significant Saudi population because many retirees take advantage of the favorable currency exchange rate that allows them to stretch their pensions. They have the best of both worlds: Financial security and many Saudi friends in the city. In the end, though, they will return home. Ask any Saudi and they will tell you that when they die their wish is to be in Makkah or Madinah.
Don’t be misled that that all is right in Saudi Arabia because its citizens are not leaving to enjoy a western lifestyle. The amount of money flowing from Saudi Arabia to foreign countries is staggering. For example, according to the UK’s Foreign & Commonwealth Office, the United Kingdom was Saudi Arabia’s “second largest cumulative investor, with over 200 joint ventures worth an estimated £11.5 billion” in 2015.
The drain of Saudi businesses exiting the country in pursuit of more friendly foreign government regulations and commercial laws could have serious financial consequences at a time when our economy is vulnerable. Temporary residency in a foreign country is of no great consequence either to the fabric of Saudi society or to our security from external agents. But a drain on investment money that could create jobs, improve infrastructure and bring in foreign investment could damage our ability to recover from the current financial crisis.
The solution is amazingly simple. The Ministries of Commerce and Labor should be given the authority to knock down obstacles and pave the way for Saudi businessmen and women to obtain quick approval for construction projects, partner with foreign companies and ease the visa requirements for skilled labor and male and female managers during the current economic climate. Once the economy rights itself, the ministries could make permanent their emergency clearances for businesses, re-evaluate those clearances in a favorable economic environment, or return to its previously established commercial rules and regulations.
In times of financial crisis governments routinely suspend regulations to stimulate growth. It’s certainly worth consideration.
