Saudi Arabia’s labour ministry has clarified its position on expat workers amid confusion over new Saudization rules and regulations.

Media reports quoted Labour Minister Adel Fakieh as saying all foreign workers who have spent six years in the kingdom would not have work permits renewed as part of its plan to create jobs for nationals.

But a ministry spokesman told state news agency Saudi Press Agency that the rule only applied to expats working for companies who do not meet new Saudization criteria.

He also said the new measure would not apply on house servants as their permits would be renewed without considering how many years they stayed in the country. Under the new Nitaqat system, companies are split into red, yellow and green categories depending on their level of employment of nationals.

The ministry said the measure would be applied on those foreigners who work for companies in the yellow and red category.The spokesman added that permits of foreign workers in red category companies would not be renewed at all, irrespective of the years they have spent in the kingdom.Companies in Saudi Arabia will have a three-month period to September 7 to achieve a prescribed quota of Saudi employees.

Unemployment among nationals in the kingdom, which sits on more than a fifth of global oil reserves and is the world’s biggest oil exporter, is currently 10.5 percent, he said, adding that 28 percent of the unemployed were women and 40 percent high school graduates. Despite its wealth, unemployment in the Gulf Arab state has risen as an outdated school system focused on religion and the Arabic language produces graduates who have difficulty finding jobs with private firms.

Companies favour workers from Asia, prepared to work long hours for low salaries, or well-paid foreign expats.

Many Saudis work in the public sector but, in contrast to other Gulf oil producers such as Kuwait, citizens do not automatically get a job because of the rapidly rising population, which now stands at almost 19 million.

In 1994 the government began a “Saudisation” plan, setting quotas for the number of nationals private firms must hire. The programme failed to achieve a significant increase in the participation of nationals in the private sector, where Saudis still account for only 10 percent of employees.Almost 70 percent of Saudis are under the age of 30, and the population is increasing by around 2.4 percent annually.

Original Source | Arabian Business

Qatar values its expatriate workforce and has no plans to emulate Saudi Arabia’s example and pack off long-staying foreign workers.

A Saudi Minister last week hinted at his government’s plans not to renew visas for expatriate jobs of expatriate workers after six years. Other GCC countries have occasionally looked at similar policies.

The Saudi plan as reported in this and other local newspapers “has caused consternation in expatriate communities,” an Arabic daily said, quoting unnamed sources from Qatar’s Ministry of Labour as saying that Doha had no such plans.

Saudi Arabia wants to cut the expatriate workforce to bolster its job nationalisation drive since the unemployment rate in the country is high. The Labour Ministry source told the local Arabic daily that the jobless rate in Qatar was quite low at 0.3 percent.

The issue of cancelling work visas of expatriates after they had completed six years in a GCC state was discussed at the International Labour Organisation (ILO) as well as at relevant GCC forums, the source said. But it was agreed at both the forums that since every GCC state had its own developmental and manpower needs, they would be in a better position to decide for themselves of the fate of the expatriates, said the source.

The ILO recognises that the GCC states are different from other nations which are grappling with the issue of immigrant workers. Foreign workers in the GCC states which have small populations do not have immigrant status and are just contract workers. “They are not here to stay longer than their expat job contracts stipulate,” said the source.

Moreover, they are here on ‘work visit visas’ and these visas are issued for five years and their status is reviewed after the lapse of that period, the source told the local daily.

“When we issue work visas for five years, how can we refuse to renew the visa of a expatriate worker after six years,” asked the source. He said that many expat workers leave after their contractual periods are over.

Less than 15 percent of the foreign workforce in Qatar is skilled while a vast majority (more than 85 percent) consists of semi-skilled and unskilled hands, the source pointed out.

“We categorically rule out any plans to refuse to renew job visas for long-staying expatriate workers,” the source said.

The daily also quoted a number of nationals as saying they were against packing off long-staying and experienced expatriate workers as that would mean a major blow to the Qatari economy.

Nearly all key sectors of the economy would be severely affected if expatriate workers are to leave after six years.

A national said the worst-affected would be the education sector, for instance, where a majority of teachers are foreigners. The daily said Saudi Arabia has told local companies not to renew visas of expatriate workers after six years.

Original Source | The Peninsula

Two-thirds of expats are feeling comfortable financially, and the vast majority believe they made the right decision to live abroad, according to a new survey.

Nine in 10 British expats think they made the right choice in moving from the UK, which may be in part because of the austerity measures – backed this week by the International Monetary Fund – which are causing financial pain to many in Britain.

The mood around the world is mixed, and the perception of future economic growth varies dramatically. For example, expats in China, Australia and the UAE are very confident about their financial future, according to the NatWest International Personal Banking fourth annual Quality of Life Index, with 96 per cent of expats in China expecting strong economic growth.

In contrast, those in European countries fear a much slower economic recovery. Europe is still subject to far greater economic concerns than countries elsewhere, with the bail-outs of Greece, Ireland and Portugal all combining to cause concern. Spain has not asked for help to shore up its economy, but there are still fears that this could happen.

Dave Isley, head of NatWest International Personal Banking, said: “It is encouraging to see that expats express self-assurance about their ability to triumph over the recessionary pressures which are causing uncertainty and cutbacks in many multi-national businesses. There is a marked difference in optimism between those expats based in Europe and those based elsewhere.“However, it is encouraging to see that despite these variations, the majority of expats present a reasonably confident view of their situation and future prospects.”

Of course, the expectations of expats and their feeling about the impact of the recession depends very much on where they are living. Those in Canada, New Zealand, Singapore and Hong Kong generally believe their economy is improving. Those in South Africa, Portugal, Spain and France, think their recovery will be considerably slower.Even though there are areas where the expectation for economic recovery is positive, overall, more than three-quarters of expats are still somewhat anxious about the impact of the recession. Interestingly, only seven per cent of UK expats are not at all nervous or anxious about the situation.

Mr Isley said: “Expats across the globe will all have felt the effects of the global recession. Whilst some countries have seen significant growth in economies, many are still experiencing turbulence and slow recovery.”

Orginal Source | The Telegraph

It is critical that governments across the world open themselves up to the movement of talent as part of the solution to meet skills shortages.

So says Jeffrey A Joerres, chairman and chief executive of international recruitment giant ManpowerGroup.

ManpowerGroup’s 2011 Talent Shortage Survey revealed 34% of employers are having difficulty filling vacancies, but due to the economic downturn many governments have tightened immigration policies.

Joerres says: “While the topic raises passions in light of continuing high unemployment, talent mobility is one proven way to address to the talent supply and demand imbalance that currently exists in the labour market.

“It is by no means the only answer and must form part of a multi-stakeholder response, but with OECD societies aging and emerging markets struggling to find the required talent there is a critical need to expand the view of talent sources.

“This is about the movement of talent to where it is needed in order to benefit economies, which is a win-win situation for all stakeholders.

“Mobility policies that are sensitive to the social implications of moving people for work are an effective approach, as they spark innovation and collaboration, while many high-skilled migrants eventually return to their homelands, taking fresh perspectives and valuable new skills with them, and fostering brain circulation.”

Original Source | Recruiter.co.uk

Americans can work in their home country for longer in their early career and still progress more professionally than Europeans can.

This is according to the views of  Alain Verstandig, president of the NET EXPAT Group, which specialises in assessing, training and coaching internationally mobile employees.

“To grow as a talent in Europe, you must move abroad,” Mr Verstandig stated while recently speaking in London at the Forum for Expatriate Management’s European Totally Expat Show.

At the same time, successful career moves within the US are easier to achieve, despite regional differences between the states, than are intra-Europe moves. While US communities may be very different, Americans see each state as still under the US umbrella. “We are definitely not there. We still see remaining barriers,” Verstandig said of challenges in moving Europeans between different European states.

In outlining the different approaches by the US and Europe to approaching international assignments, Verstandig pointed out that the US has a very “transactional” approach to such assignments, while Europeans tend to have “a more strategic view” of using them to build long-term capabilities within their organisations.

The US has higher levels of attrition amongst international assignees than Europe, he also pointed out.

Original Source | Recruiter.co.uk

Almost two-thirds of Australian companies indicate they would consider hiring expat staff to overcome skills shortages.

The Australian Institute of Management’s (AIM) National Salary Survey 2011 surveyed 506 large companies throughout Australia, covering over 250 job roles. Around half of the respondents reported difficulties in recruiting staff due to skills shortages. In order to help retain staff, the vast majority (92%) of large companies paid salary increases in the 2010/11 year for at least some employees. The average pay increase for staff who received pay rises was 4%, higher than the average last year (3.7%).

AIM’s NSW/ACT chief executive, David Wakeley, said there was a risk of a wages blow-out, with employers finding it hard to keep good staff without offering big wage hikes.

“For the past few years, it has really been an employer’s market, but that is changing,” he said.

“Many staff who stayed put during the downturn are now on the hunt for new opportunities and bigger pay packets.

“Many employers will have big cost pressures, so savvier employers are seeking creative ways to motivate people, without offering big salary hikes.”

Vivienne Gayton, HR manager at mining services contractor Mastermyne, told Human Capital that wage hikes are not the solution to plugging the skills gap. “Mastermyne believes the practise of increasing pay rates to secure personnel is only inflating wages beyond unjustifiable levels, jeopardizing the long-term international competitiveness of the industry and creating unmaintainable rotation of the same pool of labour,” she said. “We’ve chosen instead to implement a mix of strategies to increase the pool of labour – one strategy being international recruitment.” But Gayton was quick to point out the challenges associated with international recruitment. “[It] is hard work,” she said. “We’re still evolving our processes to support the on-boarding of international employees.”

The AIM survey revealed that companies are investing in a renewed effort to train and develop existing employees, with 63% having a formal training policy and more than half of those surveyed having a set training budget.

Mastermyne have even designed and constructed a purpose built underground training complex in Mackay city, said Gayton. Referred to as Myne Start Training Complex, it provides a controlled and consistent pathway for inexperienced personnel to gain a level of understanding of the underground mining environment, its distinctive hazards, safety requirements and associated control processes; all the while accelerating them into productive work in a far reduced timeframe, when compared to traditional training methods. In order to help attract and retain employees, large companies are also becoming more flexible, with a greater proportion of companies in the 2011 survey offering flexible work arrangements across all job levels.

Original Source | International Business Times

Singapore has overtaken Hong Kong to become the third costliest economy in Asia for expatriates’ daily needs.

According to human resource firm ECA International, it said the Singapore dollar, which has surged by more than 10 percent against the greenback, pushed the city-state to third place above Hong Kong, with Japan and South Korea remaining the two most expensive countries.

ECA International carries out a survey twice a year by measuring a basket of common items purchased by expatriates in more than 400 locations globally, such as dairy produce, vegetables, clothing and meals out.

The survey does not include housing, utilities, car and school expenses as these items can make a significant difference to costs but, the firm says, are often compensated for separately in expatriate packages.

“While we are seeing price increases in a number of Asian locations, the main reason for Singapore’s rise in our ranking over the past 12 months is the strength of the currency,” says Lee Quane, the firm’s regional director.

He said allowances paid to protect the purchasing power of employees on long-term assignment in Singapore are now higher than those paid to international executives posted in many other financial centres.

In the latest ECA International survey, carried out in March, Singapore had leapfrogged Hong Kong to occupy sixth position in a list of the 10 most expensive Asian cities.

Tokyo was followed by Nagoya, Yokohoma and Kobe, while South Korea’s capital Seoul was ranked fifth. After Singapore and Hong Kong, Beijing, Shanghai and South Korea’s port city of Busan were the most expensive Asian cities for expatriates.

Globally, Tokyo heads the top 10 list followed by Oslo, Nagoya, Stavanger in Norway, Yokohoma, Zurich, Angola’s capital Luanda, Geneva, Kobe and the Swiss capital of Bern.

Original Source | TODAYonline

People follow their heart when they decide to move abroad, suggests new study into expat choices.

Love is in the air for expats as one in five admits it is the reason they move aboard, according to a survey by Bupa International, the leading international expatriate health insurer.

Love is such a powerful motivator for living and working abroad that it tops lifestyle choice – cited by only 8% of expats – retirement (4%), weather and culture, which received just 1% each. Women are significantly more likely to move abroad for love with 24% having done so, compared with only one in nine men (11%).

Of those expats who moved abroad ten years ago, only 14% did so for love compared to 22% of those in the last five years, which could indicate a growing trend. Nearly nine out of ten expats who did so are either married or co-habiting. Country of choice is important too. A quarter of expats in the Netherlands chose to live there for love as did 23% of those in Germany.

Dr Sneh Khemka, medical director of Bupa International said: “There is no doubt that romance is very much alive for many expats.

Anyone considering moving abroad should think about their health as well as their heart. Things can get complicated overseas, particularly if you are not familiar with the healthcare system which can vary enormously from one country to another. It’s always good to be prepared for any eventuality so make sure you seek advice and help from experts before you go.”

Fear amongst expats that other GCC states will follow after Saudi Arabia forces firms to cut expatriate jobs and hire local citizens. A decision by Saudi Arabia to limit the stay of expatriate workers to six years appears to have triggered fears among foreigners residing in the region that such a [...]

Recent problems accessing the Internet have triggered a wave of grumbling among many expatriate residents living in Beijing. But an informal survey by the Global Times found only one expat who is packing her bags and leaving because of it. And she plans to come back after the summer because [...]