By Shujaath Ahmed Khan.
"I am more than satisfied with my decision to come back to India ", said Mr. Rashed. He had done his Engineering degree in IT in the hope of getting a decent job in Gulf countries. Inspite of IT boom in India he had opted to come to Saudi Arabia in 2005. Not happy with the environment and realizing the stunted growth opportunities in this market, he immediately returned back, disappointing his family members. His salary in Saudi Arabia was SR. 6,000 p.m. and when he got back to India he got little less than this i.e., Rs. 65,000. After two years his salary has reached more than Rs.100,000/- per month. Where as the incomes of his colleagues in Saudi Arabia has hardly increased by 12% in Riyal terms. Had he stayed his Salary would have been SR. 6,600 (Rs.71,000). In India he was offered loan by one of the local banks and is a proud owner of a luxury flat at one of the prestigious locations, with an annual appreciation of 25%.
According to the 7th annual Asia-Pacific Salary increase in 2007, survey by Hewitt Associate, the increase would be in the range of 12.3% to 15%. Salary hike will be maximum in India among the Asian countries. Another survey carried out by the Dubai based GulfTalent.com reveals that at-least six percent foreign nationals living in Gulf will leave and return to their home countries for growing employment opportunities especially in countries like India .
Indians form the second largest expat community in this country. Many Indian have made good savings and enhanced their status within their communities. This generated many prospects, who are eager to work in the Kingdom and reach the levels of their predecessors. The recent incident of an agent duping gullible people of their hard earned money to a tune of rupees three million in Hyderabad , speaks of volumes about the dreams many youths still harbour about working in this region without realizing the hard facts.
The average Indian is finding it extremely difficult to sustain the attractiveness of the Gulf market. The cost of mutton (lamb’s meat) has increased from SR. 20 to SR.26 in retail market and from SR. 14 to SR. 20 in the wholesale market. The price of rice, which is a staple food of Indian’s has risen from SR. 25 per 10 Kg to SR. 32 per Kg. in the wholesale market. The rates of Basmati rice used for Biryani’s(popular dish) has increased from SR. 34 to SR. 42 in the whole sale market. Similarly there is a rise of on an average 10 – 15% in the rates of atta, chicken and pulses. Where the rates have not risen on close observation we can find the shrinkage in the volume or size of the products on an average 10-15%. The transportation cost of School bus is increased from SR. 100 to SR. 135 an increase in 35%. Banana, commonly known as common-man fruit was sold at SR. 2 per Kg. is now being sold at SR. 4 per Kg. On the whole there is an average increase in cost of around 25% to 30%.
On the other side of the fence booming Indian market is offering immense opportunities never seen before with the rising of property rates and influx of foreign investments especially in the all the major cities and surrounding areas. The wages are linked to the Consumer Price Index/Inflation due to which there is always a growth in terms of actual earnings. Because of higher cost of living in Saudi and better opportunities at home, some of the Indians are returning to their home countries for good and to start new career. Some have sent their families 2-3 years ahead of schedule. There are also instances when the persons selected by Saudi firms got offers of better packages within India , thereby making them to pursue their careers within India .
Inspite of the double rate of inflation the cost of living in India is less than half of that of Saudi Arabia . If we analyse the rents in a city other that metro's a two bedroom flat is available for rent at SR. 500 per month compared to SR. 1,000 in Saudi Arabia . Locally produced vegetables and fruits are available at 1/8th to 1/4th of the cost available in Saudi. Mutton is SR. 16 per Kg, Chicken SR. 5 per piece. Pulses, milk, rice and transportation are available at less than half the rate compared to Saudi Arabia . School fee is less by almost 60-70%. Cost of banana is less than SR. 1 per Kg. In terms of expenses a person can save at-least 50-60% on monthly expenses.
The conversion rate of Riyal to Rupee has reduced from 0.0802 in middle of 2006 to the current 0.0932 in September, 2007. This reduction in rates have reduced the earnings of Indians by 15%. If we analyse a person earning SR. 5,000 and making a saving of SR. 2,500 prior to mid 2006, he is able to save between SR.250-500 and is inching towards hand to mouth existence. On a similar salary back in India , the same person will be able to increase his savings by at-least by 200-400%.
In the coming days dollar may come under further pressure and inflation is going to be sustained. The salary levels in India will go on increasing. This will give the Expats here an opportunity to ponder over their future plans, think of starting their careers and businesses back in India .
It is high time that the employers here take a serious look into this to avoid the draining of the talent pool present here and getting the right talent from India by offering right salaries. Consideration should be given to the erosion of dollar, inflation and situation in the home countries in bringing the salaries to right levels.
Tail Piece: (email in circulation)
Philosophy:
Alexander at his death bed said, "My last wish is that both my hands be kept dangling out of my coffin - I wish people to know that I came empty handed into this world and empty handed I go out of this world."
Reality:
Recent news headlines in Saudi, Dubai & Doha - Rent increase, prices increase, water & electricity increases, school fees increase, more parking fees, Road Toll etc. It all proves the old philosophy: We came to the gulf empty handed, and would go back empty handed as well!!
According to the 7th annual Asia-Pacific Salary increase in 2007, survey by Hewitt Associate, the increase would be in the range of 12.3% to 15%. Salary hike will be maximum in India among the Asian countries. Another survey carried out by the Dubai based GulfTalent.com reveals that at-least six percent foreign nationals living in Gulf will leave and return to their home countries for growing employment opportunities especially in countries like India .
Indians form the second largest expat community in this country. Many Indian have made good savings and enhanced their status within their communities. This generated many prospects, who are eager to work in the Kingdom and reach the levels of their predecessors. The recent incident of an agent duping gullible people of their hard earned money to a tune of rupees three million in Hyderabad , speaks of volumes about the dreams many youths still harbour about working in this region without realizing the hard facts.
The average Indian is finding it extremely difficult to sustain the attractiveness of the Gulf market. The cost of mutton (lamb’s meat) has increased from SR. 20 to SR.26 in retail market and from SR. 14 to SR. 20 in the wholesale market. The price of rice, which is a staple food of Indian’s has risen from SR. 25 per 10 Kg to SR. 32 per Kg. in the wholesale market. The rates of Basmati rice used for Biryani’s(popular dish) has increased from SR. 34 to SR. 42 in the whole sale market. Similarly there is a rise of on an average 10 – 15% in the rates of atta, chicken and pulses. Where the rates have not risen on close observation we can find the shrinkage in the volume or size of the products on an average 10-15%. The transportation cost of School bus is increased from SR. 100 to SR. 135 an increase in 35%. Banana, commonly known as common-man fruit was sold at SR. 2 per Kg. is now being sold at SR. 4 per Kg. On the whole there is an average increase in cost of around 25% to 30%.
On the other side of the fence booming Indian market is offering immense opportunities never seen before with the rising of property rates and influx of foreign investments especially in the all the major cities and surrounding areas. The wages are linked to the Consumer Price Index/Inflation due to which there is always a growth in terms of actual earnings. Because of higher cost of living in Saudi and better opportunities at home, some of the Indians are returning to their home countries for good and to start new career. Some have sent their families 2-3 years ahead of schedule. There are also instances when the persons selected by Saudi firms got offers of better packages within India , thereby making them to pursue their careers within India .
Inspite of the double rate of inflation the cost of living in India is less than half of that of Saudi Arabia . If we analyse the rents in a city other that metro's a two bedroom flat is available for rent at SR. 500 per month compared to SR. 1,000 in Saudi Arabia . Locally produced vegetables and fruits are available at 1/8th to 1/4th of the cost available in Saudi. Mutton is SR. 16 per Kg, Chicken SR. 5 per piece. Pulses, milk, rice and transportation are available at less than half the rate compared to Saudi Arabia . School fee is less by almost 60-70%. Cost of banana is less than SR. 1 per Kg. In terms of expenses a person can save at-least 50-60% on monthly expenses.
The conversion rate of Riyal to Rupee has reduced from 0.0802 in middle of 2006 to the current 0.0932 in September, 2007. This reduction in rates have reduced the earnings of Indians by 15%. If we analyse a person earning SR. 5,000 and making a saving of SR. 2,500 prior to mid 2006, he is able to save between SR.250-500 and is inching towards hand to mouth existence. On a similar salary back in India , the same person will be able to increase his savings by at-least by 200-400%.
In the coming days dollar may come under further pressure and inflation is going to be sustained. The salary levels in India will go on increasing. This will give the Expats here an opportunity to ponder over their future plans, think of starting their careers and businesses back in India .
It is high time that the employers here take a serious look into this to avoid the draining of the talent pool present here and getting the right talent from India by offering right salaries. Consideration should be given to the erosion of dollar, inflation and situation in the home countries in bringing the salaries to right levels.
Tail Piece: (email in circulation)
Philosophy:
Alexander at his death bed said, "My last wish is that both my hands be kept dangling out of my coffin - I wish people to know that I came empty handed into this world and empty handed I go out of this world."
Reality:
Recent news headlines in Saudi, Dubai & Doha - Rent increase, prices increase, water & electricity increases, school fees increase, more parking fees, Road Toll etc. It all proves the old philosophy: We came to the gulf empty handed, and would go back empty handed as well!!
Shujaath Ahmed can be contacted at shujaathahmed@yahoo.co.in
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