Riyals take wings: With $44bn remittances, KSA leads Gulf states

Updated 12 June 2015

Riyals take wings: With $44bn remittances, KSA leads Gulf states

JEDDAH: Foreigners working in the Gulf states sent home more than $100 billion in remittances last year, an economic report showed Tuesday.
The figure was twice as high as remittances in 2010, an indication of strong growth, the head of economic research at Kuwait Financial Center (Markaz), Raghu Mandagoathur, said in the report.
Around 25 million expats live in the six Gulf states — equal to the native population.
The remittances are estimated at 6.2 percent of the combined GDP of the GCC states of $1.6 trillion, the report said, citing IMF and World Bank figures.
In comparison, foreigners in the US and Britain sent home just 0.7 percent and 0.8 percent of GDP, respectively, it said.
Saudi Arabia topped the list with its estimated 10 million expats sending home $44 billion, followed by UAE with $29 billion.
Remittances from Kuwait and Qatar were $12 billion and $9.5 billion, respectively, while smaller transfers were made out of Oman and Bahrain, the report said.
The majority of Gulf expatriates originate from India, Egypt, the Philippines, Bangladesh and Pakistan, as well as Indonesia, Sri Lanka and Yemen.
The report advised GCC states to encourage expatriates to invest by launching specialized services and opening up their markets to foreign residents, especially the real estate sector. It said: “GCC countries can start opening up their markets to foreigners, especially expats. Real estate is a great example of an untapped opportunity.
“Investment by expatriates should be differentiated from foreign investment, as the former provides a more stable source of investment given the length of time they spend in the region.”
But the toughest obstacle would be reaching out to low-wage workers, who constitute the bulk of remittances, said Raghu Mandagolathur, who authored the report.
An employer engagement strategy can be implemented to tap into this segment, he added.
“Remittances offer a low hanging fruit to GCC governments to implement strategies that can stem and reverse the flow. It is in the long-term interest of GCC countries to reduce at least some of them through proper incentives and investment opportunities,” the report added.


Saudi Arabia’s Eastern Province feels very American, says US consul general

US Consul General Rachna Korhonen finds the diwaniya and majlis culture of the Eastern Province fascinating. (Supplied)
Updated 25 February 2020

Saudi Arabia’s Eastern Province feels very American, says US consul general

  • Saudi hospitality wins the heart of diplomat who considers Kingdom one of her favorite destinations

DAMMAM: The US consul general in Dhahran, Rachna Korhonen, lists the Kingdom as one of her favorite places and is in love with the local culture and traditions.

Working in the Kingdom since 2017, she has been impressed by the tremendous changes taking place in Saudi Arabia under Vision 2030.
Arab News caught up with Korhonen to discuss all things American and Saudi.
“As US Ambassador Abizaid has said, the US-Saudi partnership is more vital than ever, particularly as we confront regional security challenges and work hand-in-hand to achieve shared economic and political objectives.”
This relationship is strong and multifaceted, she said, adding: “We work together every day to promote prosperity and economic development, protect the security of our two countries, and build the people-to-people ties that keep our relationship strong.”
She said that a posting to Saudi Arabia was her first choice for an assignment.
“I did not know at the time that I would be the first woman to serve as the US consul general in Dhahran. I really wanted to learn about energy! I was pretty nervous and somewhat scared, but also excited and enthusiastic. I spent three years in Riyadh and some time in Kuwait and Iraq so I had a pretty good understanding of the region.”
Korhonen speaks highly of the Saudi hospitality and the way people welcomed her.
“I came (to the Kingdom) just before Eid Al-Adha. It is a tradition that the consul general makes Eid calls to visit prominent families. I was lucky enough to meet people from the very first moment I arrived. I have always made an effort to get to meet people at different occasions. Saudis have welcomed me into their homes, shared meals and traditions with me. I really have the best job in the best place at the best time,” she told Arab News.

Saudis have welcomed me into their homes, shared meals and traditions with me.

Rachna Korhonen, US consul general

Korhonen said she finds the diwaniya and majlis culture of the Eastern Province fascinating.
“I enjoy meeting new people and learning about what is happening in the Eastern Province. Diwaniyas are a great place to do that. I also love gahwa (Arabic coffee) and dates,” she said.
Korhonen said the Eastern Province feels very American to her. She thinks this is partly due to the close relationship enjoyed by the countries since the 1930s, which began with Aramco and also because thousands of Saudis from the Eastern Province have studied in the US.
Commenting on the social transformation in the Kingdom under Vision 2030, she said: “I still remember very well the first game I attended in Saudi Arabia. It was a very hot and humid day in August, but I wanted to be in attendance to show support for the Eastern Province teams. There was a big crowd and the energy in the stadium was amazing. At that game, I was the only woman in the family section. Now, it completely feels normal to see entire Saudi families in the stands. I could be anywhere in the world at a sporting event. It’s such a huge change.”
She told Arab News that “there have been no recent changes” in the US visa process, adding: “We have visa appointments most weeks from Sunday to Thursday. We encourage everyone interested in going to the US this summer to start thinking about applying now, since we expect demand will grow as we approach the summer season.
“We continue to look for ways to reduce the amount of time a person spends in our waiting room, the wait for visa appointments (especially for students), and the time it takes for someone to get their passport back with the visa.”
She said her favorite initiative that brings Saudis and Americans together is the International Leadership Program.
“The consulate also works with local Saudi partners to bring American athletes, musicians, entrepreneurs, artists and other experts to the Eastern Province to exchange ideas and explore ways to collaborate. Our EducationUSA office helps Saudi students who are interested in studying in the US learn about US universities, the admission process and how to prepare for their educational experience,” the consul general said.