What will happen to Expats in KSA after 2020?

According to a study, economic experts have predicted that the expatriates in Saudi Arabia will eventually start to move out of the country as the Saudi job market is moving towards Saudization.

Increased Dependent fee

This will cause the population structure of the country to change and it is expected that around 2 million expats will depart from Saudi Arabia by the first quarter of the next year (2021).  

The main reason for this departure will be the increase in taxes and fees imposed by the government on the expatriates, which many of them will not be able to cope with.

Reduced Subsidies

Apart from this, the government also plans to reduce subsidies on fuel, electricity, cooking gas, baby milk, bread, and medicines.  It is predicted that another 2.5 million will leave the country after not being able to cope up with these subsidies, imposed fees, and taxes.

The departure of expatriates shall encourage local professionals to take up jobs in different sectors. It is also expected that the Saudis will work in places where they have never worked before.

By the end of 2020, only those expats who are having high salaries and less than 4 family members would be able to stay in the country.

This departure of expats from the country will affect the different sectors such as nutrition, catering and real estate.

It will affect the lives of locals too

All of this not only has an impact on the lives of expats but also on the locals. The locals will tend to reduce their expenses by shifting their children from private to government schools and moving to less expensive houses or apartments.

The car agencies will not have to suffer a lot as women are allowed to drive in Saudi Arabia now. It is expected that the automobile market will see significant growth in the year 2020.

Furthermore, buying and selling of consumer electronics will reduce which will cause many companies to shut down. Usage of second-hand products will increase such as mobile phones and cars.

Many food chains and restaurants are predicted to close because of a few customers and low profits. 

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Steve has been living in Saudi Arabia since 2013 and writing about Saudi rules, regulations, guides, and procedures since then.