While the Gulf countries used to be a much-preferred place for Indians to emigrate for work, the number of people making that move of late has seen a decline. As per official figures, about 7,75,845 Indians moved to the Gulf countries in the year 2014, but the figure dropped to 5,07,296 in 2016.
The reason behind the decline is expected to be the economic slowdown in the region as well as weaker oil prices, according to the Times of India. Among all the Gulf countries, Saudi Arabia is said to have witnessed the sharpest decline – about 50 percent – when it comes to emigrant workers from 3,29,882 in 2014 to 1,65,356 in 2016. While one of the reasons is said to be the growth of the Islamic State in Iraq and Syria, the Saudi government's economic policies are also said to have an impact.
The Saudi government has off late urged companies to hire more locals as opposed to getting people from other countries for work. "This is to encourage the private sector to employ a greater number of Saudi nationals as well as to reducing reliance on expatriate workers. Further, against the backdrop of declining oil prices, the Saudi government has introduced a number of new taxes/VAT so as to augment the sources of government revenue," the daily quoted the foreign ministry as saying.
Meanwhile, the number is unlikely to improve anytime soon as Saudi Arabia has now also imposed the much-discussed "dependent fee." Under this, expats are required to pay 100 Riyals (about Rs 1800) per month for each dependent member in the family. The residents at present pay 50 Riyals for each family member.
The new tax will turn out to be rather expensive for the lakhs of Indians living in Saudi Arabia on a family visa. For instance, a person living with wife and two children will have to shell out 300 riyals each month, which is approximately Rs 5,170. Meanwhile, what adds to the woe is that the entire amount for the year needs to be paid in advance while renewing the residency permit.
If the 100 Riyals per family member per month wasn't enough, the tax is set to increase by 100 Riyals every year until 2020, which means by then the fee for each family member will be 400 riyals (Rs 6,900 approx).
Due to this, numerous Indians living in Saudi Arabia have returned to India. "Some families who I know have made plans to return to Hyderabad as they feel they cannot afford to stay there any longer," Mohd Taher, a computer professional from Hyderabad, who lives in Dammam, told TOI earlier.
Migrant rights activist Bheem Reddy Mandha also explained that in the past few months "the men have become forced bachelors."
With lesser Indians moving to the Gulf countries for work, remittances have also reportedly fallen from $69,819 million in 2014-15 to $65,592 million in 2015-16.
