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Expats depature will lead to price hikes, weaken purchasing power of nationals
January 29, 2017, 8:34 am
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Economic researcher Muhammad Ramadan has conducted a study on the consequences of an ongoing campaign launched by some MPs targeting expatriates under the pretext of addressing the lopsided population structure issue, reports local daily.

Ramadan argued the expatriates greatly contribute to economic development and they are one of the reasons behind the prosperous lifestyle of citizens. He said statistics shows that there are about four to six domestic workers for every 10 citizens according to the area and standard of living.

He warned the departure of expatriates will lead to price hikes and weakening of citizens’ purchasing power which will obligate the State to shoulder more expenses in order to compensate citizens. Talking about jobs, Ramadan said the work load will be heavier for Kuwaiti employees who will be required to carry out more tasks.

Concerning the private sector, Ramadan believes this sector will face a big problem because the departure of expatriates means that private companies will be obligated to replace foreign workers who receive low salaries with nationals whose salaries are high. He said this will reflect on the cost of production and then the prices will increase. He suggested gradual replacement of expatriate workers with citizens in certain professions. About the proposal to impose tax on remittances of expatriates, Ramadan asserted the expatriates are not allowed to own properties, acquire long-term residency permits nor invest directly in Kuwait so they have no other option but to transfer their money to their home countries.

Meanwhile, Minister of Public Works Engineer Abdulrahman Al- Mutawa affirmed commitment of the ministry to have Jaber Al-Ahmad Causeway Project completed according to the time frame, and without delay, reports Al-Jarida daily.

He said the project is one of the mega developmental ventures under implementation in Kuwait that will propel the country toward the required growth if completed. In a statement, Al-Mutawa stressed the ministry in coordination with concerned authorities will eliminate obstacles that might thwart smooth execution of the project.

Source: Arab Times

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