The decision by Saudi Arabia’s King Abdullah to extend an amnesty for illegal workers to obtain legal status in the country has been widely welcomed by analysts, businesses and expats.
The new deadline – the last day of the Islamic calendar, November 3 – was announced on Tuesday, one day before the original date.
Social media users took to websites such as Twitter and Facebook to hail the decision and thank King Abdullah.
“Long live Custodian of the two holy Mosque King Abdullah! Thanks for extending the amnesty date for illegal expat workers!” Amber Shahid posted on micro blogging website Twitter, where the topic quickly trended.
“King Abdullah, may God bless you and give you the best of health! The extension of the grace period to expatriates is akin to a big burden being taken off the backs of everyone who were ready to press the panic button,” Maha Jawad wrote on Facebook.
Meanwhile, analysts said the decision would help prevent major disruptions to the workforce by avoiding a mass exodus of expats who were unable to meet the deadline, as well as ease pressure on authorities processing the new visas.
“The time provided is reasonable given the extent of the problem of illegal workers and the time it takes to process their application,” chief investment strategist at financial services firm Masic, John Sfakianakis, told local daily Arab News.
“It’s an unexpected burden on the public administration work force.
“There will [also] be clarity and fewer distortions in the labour market that will aid the government’s efforts toward Saudisation.
“There will be short-term costs associated for some sectors such as, obviously, the contracting business, but over the medium-term there will be a smoother adjustment both at the human resource front and output front. This adjustment is happening without any evidence of inflation build up in labour costs or other input costs for the economy.”
About 240,000 expats had legalised their work status in Saudi Arabia at the beginning of June, according to Ministry of Labour officials. They transferred their sponsorship to companies where they presently work or to new employers.
However, it is estimated many times that number had been unable to make the deadline.
Earlier this year Saudi Arabia began to crack down on the millions of foreign workers who have violated their visa terms with surprise inspections on streets and in company offices.
It then announced a three-month amnesty before extending it. The short deadline had caused panic among many expats, particularly those from southern Asia and Africa, who feared prosecution and deportation.
There also was concern among businesses that the rapid loss of expats, many of whom do the low paid jobs, would affect the economy.
Remittances earned by illegal workers cost Saudi Arabia 10 percent of its GDP during the decade to 2002, according to research by a Saudi economist.
Expatriates who operated illegal businesses in the kingdom remitted SR635.7bn ($169.5bn) to their home countries between 1992 and 2002, Professor Abdul Aziz Diyab said in April.
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