1. Socio-economic Impacts of Foreign Population on Saudi Cities
By:Mohammed A-lGabbani
Department of Geography
King Saud University
Riyadh, Saudi Arabia
Presented at
FIFTH BIENNIAL POPULATION GEOGRAPHIES CONFERENCE
DARTMOUTH COLLEGE,
Hanover, New Hampshire, USA Aug.6,2009

2. Introduction
In the last three decades international migration has been on an increase as more migrants move in search of improvement of their economic and social conditions.
Development in communications and transportation facilities made such movement easier and less costly financially and socially.
Lower airfares make it possible for more frequent trips home.
Satellite TV, mobile phone and the internet keep migrants in close touch with their families and home countries.

3. Introduction
Saudi Arabia is one of the world major destination for international migrants and thus is considered a high-immigration country. (Ranks 5th among the world top ten countries with the largest foreign population).
Data from the 2004 census reveal that their number is over 6 millions accounting for nearly 30% of the total population. (theis figure does not include 1-2 million illegal immigrants who have come into the country for relgious purposes (Hajj or Umra) and then stayed on, and illegals runaways from their sponsors).
They came of diverse cultural backgrounds ( from more than 190 countries).
Their numbers are still on the increase.
In 2008, The Ministry of Labour approved (970,805) visas, an increase of (38,722) visa over those approved in

4. Introduction
The large size, diversity and substantial annual increase of foreign population has profound impacts on Saudi society in general and major cities -where they cluster- in particular.

8. Study Objectives
The present work tries -as data permits- to explore some changes taking place in Saudi Arabia as a result of the influx of foreign migrants.
The main objectives of this study are to:
Reveal size, spatial distribution, demographic and socioeconomic characteristics of foreign population in Saudi Arabia,
Shed light on some negative impacts of foreign population on Saudi society in general and cities in particular. The city of Riyadh the capital of Saudi Arabia was used as a case.

9. Data Sources and Limitation
Research data has been derived mainly from 1974,1992, and 2004 population censuses as well as the Ministry of labour 2008 Statistics.
Lack of detailed data about foreign population such as their spatial distribution and socioeconomic characteristics by nationality is a major obstacle of achieving study objectives .

10. Foreign Population: Size and Growth
Immigration in large numbers to Saudi Arabia have begun in late seventies but the level of immigration has grown substantially since mid 1980’s after rise in oil revenues and the increase in government expenditure.
Foreign population are growing faster than the national population.
International migration size increased from 800 thousands persons in 1974 to 4.1 millions in 1992 and 6.2 millions in 2004, an increase of more than 80.5% and 51.2% respectively compared with 51.2% and 29.9% for the nationals.
The second surge occurred after 2003 with rise in oil revenues. According to Minster of Labour, foreign population number was estimated at 8.8 million persons in representing 41% of the country total population( Arab Renewal, July, ) .

11. Foreign Population Growth (1974-2004)
Year
Total Population (000)
Total Foreign
(000)
Foreign %
Average Change%
1974 7 .8
11.4
1992
16.9
4.1
24.3
21.7
2004
22.7
6.2
27.3
4.3
Source: population Censuses,74,92,2004

12. Size and Growth of Total Population and Foreign 2000-2015(estimates)
Year
Total Population (000)
Total Foreign
(000)
2000
16,069
7,273
(31.9%)
2005
23,369
9,2829
(28.4%)
2010
33,921
11,02 (24,5%)
2015
39,921
12,657
(24,1%)

13. Why Recruitment of Foreign workers at large ٍٍScale
There are several reasons that led -over the years- to influx of foreign workers to Saudi Arabia among which:
Small population size, rapid and huge development projects. In other words, the absence of an adequate local labour supply of all levels to meet development programs needs.
An imbalance between university graduates and labour market requirements,(74% are arts and social sciences graduates ) .
Low participation of women in the labor market(11%)
Lack of local labour skill for certain jobs.

14. Why Recruitment of Foreign Workers at Large Scale
5 Private sector preference for foreign labour because of their low wages and skills, as a result there is a reluctance of national employment to work in some occupations given the present low wages offered by the private sector. Thus many jobs are left for foreign labourers.
6 Preference of Saudis to work in the public sector (government jobs are more attractive because of job security and less work hours compared to the private sector).

15. Why Recruitment of Foreign Workers at Large Scale
Existence of the sponsor “Khafeel” system , which became a source of income for some. There is a large number of individuals and small companies who bring in foreign workers and let them fend for themselves in the job market
( some have their own businesses such as retail or whole stores, restaurants, work or repair shops……) and the sponsor get in return certain amount of money agreed upon paid either monthly or annually .

16. Socio-economic Characteristics of Foreign Population
Most of Foreign populaton in Saudi Arabia are:
Males(68%)
Young( 56% between years old)
70% have littlle or education.
More than 80% are unskilled or semiskilled.
Represent about 75% of workforce, 95% are in the private sector.
Average yearly income $6400, 7% of them their average yearly income is over $27000
They dominate many sectors and jobs: constrution, trade (wholesale and retaile) manufacturing, agriculture, maintenance and repair jobs, social and personal services.

17. Socio-economic Characteristics of Foreign Population

18. Socio-economic Characteristics of Foreign Population

19. Socio-economic Characteristics of Foreign Population

20. Socio-economic Characteristics of Foreign Population

21. Socioeconomic Characteristics of Foreign Population

22. Socioeconomic Characteristics of Foreign Population
Distribution of Foreign Population by Nationality:
Information on the nationalities of migrants is poor, and relies mainly on estimates.
Until late 1970’s the greatest number of foreign workers were Arabs, chiefly from Egypt, Yemen, Sudan, Syria, Palestine and Jordon.
But since mid 1980s Asians from India, Pakistan, the Philippines, Indonesia, Bangladesh, and Sri Lanka mainly became the majority because of their low wages.

23. Socioeconomic Characteristics of Foreign Population
Major foreign communities:
India, Pakistan, Egypt, Yemen, Bangladesh and Philippines are leading source of international migrants to Saudi Arabia, followed by Indonesia and Sudan.
Recent estimates indicate that Saudi Arabia has between 1 and 1.5 million foreigners each from India, Bangladesh, Egypt, Yemen, Pakistan, around 900,000 workers from the Philippines, 700,000 from Indonesia and 500,000 from Sudan .

24. Socioeconomic Characteristics of Foreign Population
Together, these nationalities account for more than 85% of Saudi Arabia's foreign population.
Numbers of migrants from Palestine, Syria, Jordan are estimated between 200, ,000 persons each.
Westerners number is around 150,000, about 60,000 are from the United States, and about 30,000 are from the United Kingdom.

25. Socioeconomic Characteristics of Foreign Population

26. Foreign Population Spatial Distribution
Distribution At the Regional Level:
Foreigners are found every where but are concentrated mainly in three regions (out of the country’s 13 regions)..
Makah region where the holy places and the major business and trade center( the city of Jeddah) are located has the largest population, and the largest foreigners in Saudi Arabia 36% (2, persons).
Riyadh, the second populous region where capital is located, also has the second largest number 28.1% (1,728,840 persons).

27. Regions and Urban Centers

29. Spatial Distribution
Eastern region where oil is produced with persons or 13.1% has the thrid highest proportion of foreign population.
Togother the three regions has 77,2% of total foreign population in the country according to 2004 census. (98.7% of industial establismnts).

30. Spatial Distribution Distribution At Settlement Level :
More than 97% live in urban places (5000 persons+).
Current rate of urban growth made major cities overpopulated, Riyadh has more than 5 millions accounting for 21.7% of the country total.
Riyadh, the capital of Saudi Arabia ranked first in the number of foreign persons among major cities. It was home of 23.22% of total foreigners or 1,426,556 persons where they represented 35% of the city total population in 2004.
The city of Jeddah had 1,371,720 or 22.33% total foreign persons, representing 49% of the total city total population in 2004 and estimates put the number to be over 50% because of the huge number of illegal migrants in the city.

31. Spatial Distribution Distribution At Settlement Level
Consequently these two cities became the largest and also the most ethno culturally heterogeneous.
In the city of Khobar, foreign persons outnumbered the nationals in Of the 173,600 residents more than one-half (56.5%) were foreign.

32. Spatial Distribution
Six cities (Riyadh, Jeddah, Makah, Dammam, Medinah and Taif) accounted for 60 % of total foreign population in 2004.
The holly cities Makah and Medina, historically were important destinations for immigrants but today attract a relatively small proportion compared with Riyadh and Jeddah.
Top 20 Saudi cities accounted for 78.7% (4,822,282 persons )of foreign migrants in 2004

33. Urban Distribution

35. Foreign Population in Saudi Cities Statistics
Average foreign population size in urban places (5000+) = 26,577 persons
Range= 100-1,426,556 persons
St. Dev. 148,158 persons
Correlation between foreign population size and city size=.98
Average % of foreign population in urban places =18
Range%=1-56
ST.Dev.9.7%
Correlation between foreign population % and city size =.30

37. Foreigners in the City of Riyadh
City Selection:
Riyadh was selected because of
Availability of data
The City has the largest and fastest-growing foreign population.
Characterized by heterogeneity and cultural diversity.

38. Growth of Foreign Population Country and City of Riyadh 1974-2004

39. Growth and Change in Foreign Population Size(1974 -2004)
Year
Total Population
(000)
Average Change%
Total Foreign
Average
Change%
1974
.571
121,000
2005
4.3
13.3
1,426,556
34.9

40. Foreign Population In Riyadh Statistics
City population grew from 571 thousands in 1974 to 4.3 millions in 2004.( annual growth rate continue for year to exceeds 8% now it is over 4%)
Foreign population size grew from 121 thousands in to 1,426,556 persons (15.1% and 23.2% of total foreign population in the country in 1974 and 2004).
They represented 34% of the city population compared with 21.2% n 1974
63% males 37% females
Median age= 30yrs.
Average family size=4.7

41. Foreign Population In the city of Riyadh Statistics
72.2% of the city workforce(817,000)(76.7 males)
96% in the private sector
30% with families,12.9% students, and 12.7% housewife's,
2.1 unemployed.
29% unskilled workers, 22 skilled, 15% technicians, 7% run own business, 3% supervisors, 2% managers
Average yearly income=24,076($6420)
87% their income was less than $8000
7.7%$
4,4% $
1.8% over $27000
41% own cars

42. Age Structure

43. Foreign Population In the city of Riyadh Statistics
Range of foreign population size in city residential areas = 22 – person.
Foreign population exceeds nationals in 34% of Riyadh’s residential areas particularly old sections of the city.
Range %= %.
10 nationalities represent more than 87% of foreign population in the city (Table).

44. Major Foreign Population in the City of Riyadh 2004 By Nationality
Number. %
Indian
166,447
11.7
Pakistani
163,563
11.5
Egyptian
152,851
10.7
Yamani
133899
9.4
Indonesians
125,247
8.8
Sudanese
121,951
8.5
Syrians
109,179
7.6
Bengali
91,875
6.4
Philippine
64,684
4.5
Jordanian
56.856 4

45. Distribution of Non-Saudis Among Residential Areas
Non Saudis % of Residential Areas Total Population
Number of Residential Areas
Les than 20 50
20-40 44
40-60 18
60-80 20
80+ 26

46. Proportion of non Saudis of Riyadh Residential Areas Total Population

47. Foreign Population In the City of Riyadh
The relatively large size of the foreign population living in the city make it possible to map residential distributions of the largest foreign groups where they form their own clusters, which is also true for other major Saudi cities such as Jeddah, Makkah , Medina and Dammam and Taif.

48. Socioeconomic Impacts
Foreign workers importance and contribution to development in general is acknowledged and the need of Saudi Arabia for them will continue for years to come.
But the phenomena reached an alarming stage as negative impacts became more pronounced. The negative impacts - the focus of this study - are demographic, social, economic and political.

49. Impacts at the National Level
Demographic:
The increase in the number of foreigners which is faster than the national population has led to a decline in the proportion of the national population (from 89% in to 74% in 1992 and 72% in 2004 and estimated to be about 60% today).
Contributed to population and urban growth.
( population size grew from 7 million in 1974 to 16.9 in 1992 and 22,7 million in 2004(.Thus Saudi Arabia rapid population (2.9%) and urban growth (88% urban) can be explained by the marked increase in international migration.

50. Impacts at the National Level
Change in age and sex composition.
Rise in young age group
Unbalanced sex distribution , males are more than females.

51. Impacts at the National Level
Social and Cultural:
Different ethnic, linguistics, religious groups..
The majority speak a language other than Arabic. Thus it is difficult to use the Arabic language in communication and dialogue. rather English, as well as Urdu, Bengali, and Arabic,.
Some are non Muslims.
This phenomena is close to a cultural invasion (large size and short period) and poses a threat to the country’s Islamic, Arab and national identity.

52. Impacts at the National Level
Social and Cultural:
2 Crime rates have risen with the presence of foreign workers.They represent 51% of total prison population ( International Center for Prison Studies)
The most common crimes committed (mostly by unskilled low paid workers), are theft, the possession and making of alcohol, fighting, and moral offenses. murder, forgery, larceny, counterfeit, fraud, falsification , adultery, drug smuggling, sabotage and drunkenness.
Rise of unemployment rate among nationals as led to higher rates of crimes.

53. Impacts at the National Level
Social and Cultural:
3 The phenomenon of housemaids and babysitters, ( mainly from the Philippines and Sri Lanka) affects the children belief and customs, and promote foreign alien culture at the expense of the inherent values of the society.

54. Impacts at the National Level
Economic:
Less job and investment opportunities for nationals:
Foreign labour across all occupations and skills constituted around two-thirds of the total workforce and 95 percent of labour in the private sector.Currently, 9 out of 10 private sector jobs in Saudi Arabia are filled by foreigners. ِThey also own and run their business establishments. Thus foreign workers are undermining investment and job prospects of nationals and reducing income and salaries.
Unemployment rate in the country has been continuously rising (13%) with an expanding local labour supply through population growth and university graduates. Studies found that international immigration increase unemployment among national.

55. Impacts at the National Level
Economic
2 Huge money transfers which represents a continuous drain of economic resources. In Saudi Arabia that there are no personal taxes levied on the population and thus most money earned is transferred. (Between 1993 and 2002 foreign workers remittance was $156.1 billion), averaging nearly ($15 billion) a year and undoubtly it is more than this amount today.
3 When taking into account free services, and the subsidies to certain services ( piped water, electricity) and commodities (rice and wheat, gasoline and cooking gas), and low customs levied on imports, most foreign enjoy and share low living costs made for nationals.

56. Impacts at the National Level
4 By bringing families, (more than 6 million foreign workers and about 3 millions members of their families). they added to the demand for imports and more consumption of imported products.

57. Impacts at the National Level
Political:
Foreigners are considered a potential security threat based on their size and continual growth.
Also there is a fear of demanding permanent residency and consequently of citizenship in the future.

58. Impacts at the National Level
Carelessness in water consumption.
Saudi Aabia land is dry lack permenant water resources and depends heavily on water desilination. Foreign population generally come from water abundant countries and as they do not alter their lifestyle and not aware or care of the need for water rationalization they rose water consumption level considerably.

59. Impact on Cities
Foreign population exceeds nationals In some Saudi cities .
They represent more than 30% of total population of many places .
Their concentration in certain residential areas (mainly old sections of cities) created to a certain extent a culturally divided Saudi Arabian cities based on nationality especially as the cases in the cities of Riyadh, Jeddah, and Makah which house large foreign communities.
A a result, sections (residential areas) of Saudi cities are totally occupied by foreign population. and some become safe haven to criminals and law violators where police faces difficulties penetrating theses areas to chase them.

60. Impact on Cities
Contributed to an Increase in demand and consequently in rise in housing prices particularly in major cities.
Decline in urban life quality. Foreign workers and their families created pressure on already inadequate services and facilities( such as health, education, security, transportation facilities, water, and electricity, sewage, garbage collection and disposal. As a result, Saudi cities today suffer from may problems including rise in crime rate, traffic jams, lack of parking spaces, rise in traffic accidents ( 40% of traffic accidents in 2004 committed by foreign drivers)

61. Government Efforts
There are efforts by the government to rationalize foreign labor recruitment.
The Ministry of labour tries to limit the number of foreign workers and reduce heavy dependence on them through:
Bans certain jobs or skills from new foreign recruitment
Subsidies for native workers to minimise the wage gap between foreign and native workers.
Migrant workers should work in actual jobs recruited for.
Grant of visas to professionals jobs that can not be filled at the present time.

62. Government Efforts
The Eighth Development( ) sought to achieve the following:
Developing the manpower skills to ensure that new entrants to the labour market have the requisite specializations.
Providing more employment opportunities to national manpower, particularly in the private sector.
Restricting recruitment of foreign labour through linking recruitment to actual needs;
Enforcing Saudization (indigenization of the workforce) and limit employment in certain professions and economic activities to national labour.
Adopting appropriate policies to enhance participation of women in the economy.

63. Government Efforts
Recently ( on July 27,2009), the Council of Ministers approved a 25 years national employment strategy which aims to reduce unemployment rate through :
Full employment of the national labour
Improvement of their skill and productivity to match its counterpart in the developed economies.
However despite these efforts foreign labor are on the increase. The Eight Development Plan ( ) projected that the number of foreign workers will decrease from 6.1 millions to 4,1 million persons during the plan period. But the number now stands at about 9 millions(Arab Renewal, July, ).
In other words, Saudi Arabia continues to depend on foreign labour and recruit more of them.

64. Conclusion
There are different of views in Saudi Arabia on the composition and size of foreign.
Most call for reduction in size of foreign workers while others believes that in their importance for economic development.

65. Conclusion
The government has to reduce the large number of foreign workers in the country in order to counter the many problems related to this situaion.
In addiion to what have been put by the government in this regads, this study suggests:
Minimum wage: Saudi workers because of low wages in the private sector can not compete with foreigners This requires setting a minimum wage for nationals working in the private sector.
Training: Training national labour force is considered a key factor since more training means more jobs for nationals and less foreigners.

66. Conclusion
3 Offering incentives to private enterprises achieving progress in employing of the national labour.
4 Linking educational programs to the needs of the labour market,
5 Expansion of the areas in which women might work while preserving the Arab and Islamic values and traditions.

67. References
Al gabbani M and S Alhusein, Residential Centralization of Foreigners in the city of Riyadh: A Study in Characteristics and Distribution King Abdulaziz City for Science and Technology, 2005.
Aljazeera News Paper No Jumada 2 ,1430h.
Arab News, 26 November 2004.
Arab Renewal, July,
General Directory of Traffic, Statistical Year Book 2005).
International Center for Prison Studies)
Migration Policy Institute 2009.
Ministry Of Economy and Planning, Eight Development Plan( )
Ministry Of Economy and Planning Population Censuses 1992
Ministry Of Economy and Planning, Population Censuses 2004
Minister Of Labor, Statistics of Foreign Labor In the Private Sector, 2008.
Pakkiasamy ,Diva Saudi Arabia's Plan for Changing Its Workforce, Migration Policy Institute November 1, 2004
Riyadh Higher Development Authority, Arrayed website.
Saudi-US Relations Information Service
U.N. Globalization and interdependence: international migration and development

68. Down Town Riyadh in a Weekend

69. Unskilled Foreign labor Seeking Jobs on a daily Basis

70. A Central Residential Area Occupied by Foreign Population

71. Stores and Restaurants

72. Ads in their Languages on a Street wall