Rizal Philippines
February 5, 2016
to Saudinazation
The Iran KSA row over the beheading of a Shiite relgious leader (most of Iran leaders are Shiite, KSA are Sunnis) may break out into war. The war could lead to loss of jobs.
From Manila Times - Iran Saudi row may displace millions of Filipino OFW
This is too sad as PHL is being kept afloat by OFW remittances. All ready , CB discounted its projection of remittances by OFW.
The other reason is the low low oil prices. KSA and Russia makes money and can provide for its people's welfare at $80.00/barrel and up. Oil is trading below $30.00 Russia is being hurt by this development, and is spending its cash reserves for paying its IOU.
From Business Mirror oil glut causes loss of jobs for OFW
Thus the oil majors closed their drilling operations because of oil prices that were at $26.10 last week. Some 4,000 Filipinos working at oil rigs at Norway and North Sea did not get contract renewal. The low prices and entry of Iran into a market that is a state of glut could not come at the worst moment.
However, many workers in ME are nurses, sales people and other professionals and may not be affected by this glut. Middle East remittances account for 25% of the total remittances and this was still OK as of December 2015
The bigger threat is the Saudinazation wherein KSA puts the limit of expats in their country to only20% of the total population to give job opportunities to Arabs. The current number of expats stand at 8 million or 30% of the total Saudi population
