Green card system to boost economy

JEDDAH: The permanent residence, or “green card”, system in the Kingdom will generate around $10 billion annually through reduced remittances and other sources, besides bringing in billions of dollars in foreign investment, say economic experts.
In an interview with Bloomberg recently, Deputy Crown Prince Mohammed bin Salman disclosed plans for issuing such cards similar to the US green card system that allows hiring more foreign workers for a fee.
The plan will abolish the existing sponsorship system for holders, who will be required to pay zakat and value-added tax, if any, besides premiums on insurance, etc. They can own property and undertake commercial, industrial and related activities.
“From information available now, it is expected that the system will generate at least $10 billion in revenues annually, although the real picture will emerge after green cards are introduced,” Mohammed Al-Anqari, economy and financial markets analyst, was quoted as saying by local media on Saturday.
The system will have many economic benefits such as revenue through the the green card fee, reducing remittances, bringing in investment and setting up of industries, he said.
“People are benefiting from green card in economically strong countries like the United States and major European countries. Such a system will also help attract scientific and medical talents to Saudi Arabia.”
Bandar Al-Naqithan, business lawyer, said the green card idea has been tried in a number of countries and will be of great help to the Kingdom. “The deputy crown prince’s announcement reflects an unprecedented openness of the Kingdom toward the world.”
There is a mutual interest between the green card giver and receiver, he said. “The holder of the card would be able to trade, establish companies and work in universities and educational hubs, and contribute to the economy.”
Al-Naqithan said that the green card holder would also bring his expertise to the Kingdom, a feature that has helped the US in a big way.