Australians in Saudi Arabia

From Wikipedia, the free encyclopedia

Australians in Saudi Arabia
Total population
5,000[1]
Regions with significant populations
Riyadh · Jeddah
Languages
English (Australian) · Arabic
Religion
Islam, Roman Catholicism and Protestantism

Australians in Saudi Arabia are a sizeable community consisting mainly of expatriates. Their population is estimated to be anywhere up to 5,000 with the majority based in major commercial centres such as Riyadh and Jeddah.[1] Most Australian citizens in Saudi Arabia tend to be occupational-oriented and are employed mainly in the health, education, construction and technology sectors.[2] There are approximately 1,000 Australians who live in Jeddah alone, a city which serves as the country's main port and economic hub.[3] In addition, thousands of Australian Muslims travel and stay in Saudi Arabia each year, often intending to visit the two holiest cities of Islam, Mecca and Medina.[3] Many expatriates in Saudi Arabia are attracted to what they refer to as "the good life", including large salaries and tax-free jobs, consistent weather and a comfortable social life within their housing compounds.[4]

Throughout the years however Australian and Saudi Arabian relations have moved further from purely expatriate towards both countries having a strong investment portfolio and mutual trade investments as well as a large educational export between the two countries. The two countries have also established an extensive level of trust through their relations during the G20 Summit and both have large investment into multiple anti terror and humanitarian corporations. With both countries being heavily invested in one another this was further reinforced with the development of the King Abdullah Scholarship program which increased educational opportunities for Saudi Arabian students as well as extended the educational opportunities for Australians in Saudi Arabia. For Australians living in Saudi Arabia, many support groups, expat clubs and networking communities have been heavily established throughout the region to improve Australians quality of life.

History[]

Mecca, Saudi Arabia
Royal Flag of Saudi Arabia

The Kingdom of Saudi Arabia is the largest Arab Nation of the Middle East. Bordered by Jordan and Iraq on the north and northeast, Kuwait, Qatar, Bahrain and the UAE on the east, Oman on the southeast, and Yemen on the south.[5][6]

The origins of Saudi Arabia go back to 1744 with the establishment of the first Saudi State. The formation of the current Kingdom began in 1902, when Abdulaziz bun Saud captured the Al-Saud's ancestral home of Riyadh, and culminated in 1932 with the proclamation and recognition of the Kingdom of Saudi Arabia.[5]

Extending across most of the northern and central Arabian Peninsula, Saudia Arbia is a young country with yet unassuming rich history. In its western highlands, along the Red Sea, lies the Hejaz, which is the cradle of Islam and the site of the religion's holiest cities, Mecca and Medina. In the countries geographic heartland is a region known as Najid or "Highland", that is a vast arid zone that until recently was populated by nomadic tribes.[7] To the east, along the Persian Gulf, are the country's abundant oil fields, that since the 1960s, have made Saudi Arabia synonymous with petroleum wealth. It is among this region that Australian's have settled their expat communities, harnessing the need for individuals in the economic, technology and export sector and growing the population of Australians living in Saudi Arabia.[8]

Saudi Arabia was one of the earliest civilisations of the Arabian peninsula. Over time this Saudi Arabia played an imperative role in history as an ancient trade centre and the birthplace of Islam. Since King Abdulaziz Al Saud established the modern kingdom of Saudi Arabia in 1932, its has endured a profound transformation and in a few short decades Saudi Arabia has turned itself from a desert nation to a modern, progressive and sophisticated state which has become a major player in international relations with many different countries.

Saudi Arabia and Australia's relationship started to blossom after 1999 when Saudi Arabia contributed to the 4.7% share of the Middle Easts exports to the middle east. In 2000 Saudi Arabia had a $1.6 Billon export with Australian markets.

The bilateral relations between the countries progressed significantly in recent times as they have moved from normal relations to one of mutual trust and a partnership in various fields. The Australian Government has stressed the importance on this strong economic partnership and investment between the countries as together they fight against extremism and terrorism for the stability of the world as well as encouraging a number of scholarships between the countries for students. The two countries are also heavily invested in the cooperation with the annual G20 summit which they share a mutual appreciation for.

Politics[]

Saudi Arabia is a monarchy ruled by the Al Sa ud Family, King Salaman bin Abdulaziz Al Saud Succeeded to the throne on the 23rd of January 2015, following the death of his brother the late King Abdullah bin Abdulaziz Al Saud. The second in line to the throne is the son of the King, Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud.[5]

King Salman bin Abdulaziz Al Saud

The King is assisted by a Council of Ministers that he appoints. In recent years the consultative Shura Council, which consists of 150 members (inclusive of 30 women) appointed by the King, has developed a modest but increasing role in public debate. Municipal elections were held in December 2015, with women being granted the right to vote and run as candidates for the first time.[5]

Islamic law or the Sharia – is a fundamental religious concept of Islam which is seen as the expression of God's command for Muslims and in application, constitutes a system of duties that are incumbent upon all Muslims by virtue of their religious beliefs. The Sharia is the primary source of legislation but the actual promulgation of legislation and implementation of policy is often mitigated by more mundane factors, such as political expediency, the inner politics of the ruling family and the influence of intertribal politics, which remain strong in the kingdom.

In June 2017, Bahrain, Saudi Arabia, the United Arab Emirates and Egypt, cut off diplomatic ties and implemented a blockade of Qatar. Negotiations towards a resolution have not been successful and relations with Qatar remain strained.[5]

Saudi Arabia is a member of the Gulf Cooperation Council (GCC). It is also a member of the Arab League, the Organization of Islamic Cooperation (OIC), the G20, the United Nations, World Trade Organization (WTO) and the Organization of Petroleum Exporting Countries (OPEC). Saudi Arabia will host the G20 in 2020.[5]

Saudi Vision 2030[]

Saudi Arabia has embarked on a program of economic reform and diversification called the Vision 2030 plan. This plan includes social reforms as a driver of economic diversification. From June 2018 women were granted the right to drive and, in August 2019, elements of the male guardianship system were dismantled to grant women additional rights.[5][9]

Women in Saudi Arabian Dressing standards

The Saudi Vision 2030 is a strategic framework to reduce Saudi Arabia's dependence on oil and diversify their economy with particular focus on developing the public service sectors such as health, education, infrastructure, recreation, and tourism. The key goals are inclusive of reinforcing the economic investment portfolio, an attempt to increase their non-oil international trade, as well as promote are softer and more secular image of the Kingdom. It is intending on increasing government spending on the military as well as manufacturing equipment and ammunition. The first details were announced on April 25, 2016 by Crown Prince Mohammad bin Salman.[10] The Council of Ministers has tasked the Council of Economic and Development Affairs (CEDA) with identifying and monitoring the mechanisms and measures crucial for the implementation of Saudi Arabia's Vision 2030.[11]

Women in Saudi Arabia[]

Legal status for women in Saudi Arabia is extremely different to the likes of Australian politics and law. In Saudi Arabia the legal system requires all women to have a male guardian, this guardian has authority to make a number of decisions on behalf of women, similar to that of a minor.[12] Women were only granted the right to vote in the 2015 elections.[9] This progressive landmark change in law created a monumental shift on the lives of Saudi Arabian women and the stigma behind being a woman in Saudi Arabia.

There was some hesitation to register to vote as there was still a lot of bureaucratic chores that accompanied the registration process with statistics from a 2020 article from news journal ‘Foreign Policy’ that women only makeup 6% of the 1.7 million people electorate.[9]

Expatriate Community[]

In the city of Saudi Arabia itself there are said to be a population of around 5,000 Australian expats. Moving to Saudi Arabia can be a polarising experience, while some may enjoy living in traditional comfortable, social compounds with large salaries, tax-free jobs and consistent weather.

As like any move for expats with a new country comes a new set of laws, cultural expectations and more specifically language barriers. It can be a struggle for some to deal with the cultural aspects such as the gender segregation and the countries intolerance for alcohol.

Most Australian citizens in Saudi Arabia tend to be more occupationally orientated and are employed predominantly in the health, education, construction and technology sectors. With approximately 1,000 Australians living in Jeddah alone, the city serves as a main port and economic hub, housing majority of the expats within the financial sector.

Compound Living[]

Most expats living in Saudi Arabia find themselves living in Western compounds, this housing is like living in a small self-contained holiday village that can have a range of amenities with anything from multiple pools to restaurants, markets and even shopping malls. Within the compounds the dress is Western, and some compounds ban any form of Saudi dressing.[13]

Generally accommodation on western compounds in Saudi Arabia is reasonable comfortable, quite spacious and can be rather lavish living quarters compared to off compound housing. Most westerners particularly Australian Expats chose to live within these compounds due to the freedom and security,[14] particularly having young children security is a large reason why compound living is so popular.

Australian flag , Kings Langley.png

Most expats have their accommodation costs paid directly by their employer who will also normally arrange housing, insurance, schools and even a healthcare plan.[13] There is a shortage of good housing in the more upmarket compounds in main cities however it is quite common for companies to rent housing despite there being no tenant to ensure they have accommodation for new expats that arrive in a shorter time frame to logistically plan safe and secure accommodation.

Australian Embassy Support[]

The Australian Embassy is open 24/7 to support all expats, travellers and be a point of contact for families and loved ones to be able to contact if in the unfortunate event something were to happen. The most recent announcement from the Embassy was to Assure Australians in Saudi Arabia, Bahrain and Oman. That in these uncertain times, the Embassy is available should any Australians need assistance. The health and wellbeing of Australians overseas is their highest priority.[15]

Economic Overview[]

In recent years Saudi Arabia has had an extremely lucrative economy, it is one of the largest economies in the middle east as its population of around 33.4 million holding nearly 20% of the worlds conventional oil reserves, Saudi Arabia is a lively economy that has until the recent pandemic been thriving.[5][16]

Australia and Saudi Arabia have had strong trade and economically driven relations since 1999 as they began with Saudi Arabia saturating 4.7% of Australia's trade investments. Since then Australia and Saudi Arabia have been important trading partners as in 2014 Australia's merchandise exports to Saudi Arabia totalled AU$3.2 billion.

Australia was ranked number seven among the countries from which Saudi Arabia imported goods. On the other hand, Saudi Arabia's exports to Australia totalled up to $688 million. Of the approximate 5,000 expats over 3,000 are employed in Saudi Arabia as Saudi Arabian needs are well suited to Australian abilities within health, education and specialist areas.

GDP estimated at $170.5 Billion However Saudi Arabia has a majority of its Export trade within its large Petroleum industry. Their petroleum industry Imports Annually over $79.0 Billion per year with its Exports being $27.8 Billion per year.

Their major trading partners are with Japan, Western Europe and the U.S.[17] However, there is a significant amount of their exports within the manufactured goods industry, with a significant portion of exports including equipment, clothing and textiles as well as processed food products'

"Saudisation"[]

Saudization(Arabic: السعودة), officially known as Saudi nationalisation scheme, or Nitgat (Arabic: النطاقات) is the newest policy of the Kingdom of Saudi Arabia implemented by its Ministry of Labor and Social Development,[18] as a Solution for Unemployment |publisher=University of Glasgow |accessdate=19 November 2020}}</ref> whereby Saudi companies and enterprises are required to fill up their workforce with Saudi nationals up to a certain level yet still encourage a significant expat community.[18]

As part of the Saudi Vision 2030's reforms, announced in 2016, reducing the number of unemployed Saudi nationals is a key element of the plan. Previously the private sector was largely dominated by expatriate workers from India, Pakistan, the Philippines, and Arab countries such as Lebanon and Egypt.

The Saudi Government took the decision to reduce unemployment among native Saudis, under the slogan 'Let's Put the Saudi in Saudization'. Companies which fail to comply with Saudization regulations have been warned that they "will not be awarded government contracts". While the "Saudi political elite" is agreed on the importance of Saudization, Saudi businesses have complained of its implementation and sought ways to avoid it.

In 2017, updates to the Saudization percentages were announced, differing the number of Saudi nationals required depending on industry and company size.

Bilateral Relations[]

As Australia's second largest market in he Middle East, Saudi Arabia is an important trading partner for Australia. In 2014 alone Australia's merchandise exports to Saudi Arabia totalled AU$3.2 Billion. Australia was ranked among the countries from which Saudi Arabia imports most goods to as their total amount of Exports to Australia totalled AU$668 Million. Australia - Saudi Business ties have expanded with the Australian former Deputy PM Mark Vaile, former Queens- land Premier, Anna Bligh and Australia Post CEO and then Chair of the Council for Australian-Arab Relations, Ahmed Fahour attending the March 2013 Joint Ministerial Commission meeting that saw the signing of a Memorandum of Understanding between the Australia-Saudi Business Council and the Council of Saudi Chambers of Commerce establishing the Saudi Australia Joint Business Council.[19] There are over 5,000 Australian citizens employed in Saudi Arabia, mainly in health, education and other specialist areas. Saudi Arabia's needs are well suited to Australian capabilities. Saudi Arabia has a sound economy with a fast-growing and young population, a well-managed banking system, good infrastructure, and generally low import duties and barriers. Its business community is sophisticated and familiar with Western practices. Austrade is represented in both Riyadh and Jeddah.[5]

Mutual Trade and Investment[]

Saudi Arabia is one of Australia's biggest trading partners, in 2019 the two way goods and services trade totalled $1.79 Billion.[20] Saudi Arabia has a significant amount of investments within Australia as their total assets add up to $3.9 billion (2018), Saudi Arabia and Australia are equally as dependent on each other with a range of export services, investments and programs linked between the two nations which enhances the lives of Australians living in Saudi Arabia.

Educational Export[]

In Saudi Arabia Educational export is an important factor in the relations between the two as Australia and Saudi Arabia have mutually enjoyed a friendly and cooperative relationship based on extensive trade relations as well as people to people contacts.[21]

With there being such a cultural shift between the two countries it isn't uncommon for Saudi Arabian's to export their education. With gender segregation and the difference in education for females being profoundly different to that of Australians,[12] it is sometimes difficult to disconnect between their cultural upbringing and has a severe impact on students and their ability to relate to their peers particularly in a coeducational environment.[22]

Saudi Arabia not only has a substantial market for educational purposes but has a large market for dairy products, vehicle parts and accessories as well as a growing market for fresh vegetables, refined metals and information communication products. Australian and Saudi Arabian business ties have strengthened with the growing number of expats enhancing the economic and bilateral relations between the two countries.[21]

Oil trade[]

The economy of Saudi Arabia is one of the top twenty economies in the world, and the largest in the Arab world and the Middle East.[23] Saudi Arabia is part of the G20 group of countries [24] With a total worth of $33.50 trillion, Saudi Arabia has the second most valuable natural resources in the world.[25] The country has the second-largest proven petroleum reserves,[26] and is the largest exporter of petroleum in the world.[27] It also has the fifth-largest proven natural gas reserves[28] and is considered an "Energy Superpower".

The economy of Saudi Arabia is heavily dependent on oil,[29] and is a member of OPEC. In 2016 the Saudi Government launched its Saudi Vision 2030 to reduce the country's dependency on oil and diversify its economic resources. In the first quarter of 2019, Saudi Arabia's budget has accomplished its first surplus since 2014. This surplus that is accounted for $10.40 billion has been achieved due to the increase of the oil and non-oil revenues.[30]

See also[]

References[]

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  2. ^ Former Australian PM calls on govt to send more Saudi students: Arab News
  3. ^ Jump up to: a b Visit to Riyadh and Jeddah, Saudi Arabia: Foreign Minister of Australia
  4. ^ Goodbye to the good life: The Age
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  15. ^ Jadwat, Ridawan. "Australian Embassy Support". Australians in Saudi Arabia Embassy Support. Australian Embassy. Retrieved 20 November 2020.
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  17. ^ Roberts, Jackson. "Saudi Arabia - Country Profile". US Department of State. US Department of state. Retrieved 19 November 2020.
  18. ^ Jump up to: a b Looney, Robert. "Saudization: A Useful tool in the Kingdoms battle Against unemployment" (PDF). Calhoun: The NPS Institutional Archive. Calhoun. Retrieved 19 November 2020.
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  21. ^ Jump up to: a b Nasser, Matt. "Saudi Australian Relationships - Education Relations". Saudi Arabian Cultural Mission. Saudi Arabian Cultural Mission. Retrieved 20 November 2020.
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  23. ^ "GDP (current US$) | Data". data.worldbank.org. Retrieved 9 September 2019.
  24. ^ "Group of Twenty members".
  25. ^ Anthony, Craig. "Which 10 Countries Have the Most Natural Resources?". Investopedia. Retrieved 12 December 2018.
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  27. ^ Workman, Daniel (30 November 2018). "Crude Oil Exports by Country". World's Top Exports. Retrieved 12 December 2018.
  28. ^ "World Natural Gas Reserves by Country (Trillion Cubic Feet)". indexmundi.com. Retrieved 12 December 2018.
  29. ^ Department, Knowledge Management. "Kingdom of Saudi Arabia - Ministry of Commerce and Investment". mci.gov.sa. Archived from the original on 28 October 2017. Retrieved 12 December 2018.
  30. ^ "Saudi Arabia sees first budget surplus since 2014". Arab News. 24 April 2019. Retrieved 1 May 2019.

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