ALKHOBAR: Saudi Arabia can boast of being among the few countries least affected by the global financial crisis. However, a large number of citizens have still become the worst victims of the price rises that came from the credit crunch.
Prices of essential goods including food as well as rent have risen exorbitantly, putting the budgets of many middle class people in jeopardy. A situation has been created where the rich have become richer and the poor have become poorer, resulting in more difficult circumstances for those on low-incomes.
Subsequently, those in the middle classes are slowly disappearing and many of them find a berth in the lower class of the poor and destitute. This phenomenon takes place despite a series of measures from the government to rein in prices and implement several welfare packages for those on low incomes, according to a report published by Al-Riyadh Arabic daily.
Salem Al-Musharraf, a citizen, says that price rises following the global meltdown has made life tougher and harder.
"In the past, we could manage to lead a decent life with a small amount of money. But that golden period is no more. Even citizens with a monthly salary of SR10,000 are struggling to make ends meet. Those with a salary of SR3,000 are in a desperate situation because they do not know how to support their families," he said.
According to Salem, there has been a huge hike in rent. "Owners of residential buildings have resorted to recklessly increasing rent, using price rises as an excuse," he said.
"Tenants are the worst victims. They have to find additional income to pay rent and buy food, in addition to meeting various other family expenses and paying utility bills."
Salem drew attention to the fact that those on low income cherish dreams of leading the life of the rich and plan trips abroad after borrowing money from others.
"This puts them under heavy financial pressure and leads to heavy debts. It is very difficult for them to lead a decent life with their limited income," he said.
He added that many middle class people are also struggling to maintain a balance between their income and expenses and search for ways to make more money.
Salem urged the Ministry of Commerce to take strict action against greedy traders who continue to increase the prices of essential goods by using the global financial crisis and food shortages as an excuse.
Eisa Al-Khalifa, another citizen, admits that life has become very difficult. "Thirty years ago, my monthly income was about SR2,000 and I could manage to lead a good life with my family," he said.
"But now, this is not possible at all even though I have a monthly salary of SR8,000. If I purchase essential goods, such as rice, oil, sugar, tea and cheese for 10 days, I have to spend a minimum of SR1,000. Needless to say, this does not cover other expenses which I have to meet as the head of a nine-member family," he said.
According to Eisa, skyrocketing prices have virtually eaten into the incomes of the middle class families like fire swallowing wood.
"A huge increase in the expenses of my children, especially their schooling, as well as mobile phone bills have made the situation worse," he said.
Umm Rashid, a widow, says she managed to meet her family expenses with the retirement benefits of her late husband alone.
"But now this is not the case. Hence, I am forced to look for ways to earn additional income," she said.
"I prepare various spices as well as oud and perfumes and sell them to women in the neighborhood," she said, adding that this additional income helps support her and her five children.
Ibtisam Yousuf, another Saudi woman, tells a different story. Even though her husband is trying his best to provide his family with quality living, price hikes have turned everything upside down.
"We were forced to shift our two children from a reputable private school to one less expensive. We have also been forced to drop many of our plans, including building a house for ourselves," she said.
Reacting to the issue, prominent writer Abdulaziz Al-Suweigh says Saudi Arabia's growing role as an economic power has become a paradox because of rising poverty and unemployment in the country.
"Saudi Arabia, with the largest proven oil reserves in the world, is now a member of the G-20 bloc. However, the gap between the poor and rich in the Kingdom is widening," he said.
"As far as the standard of living is concerned, the Kingdom is one of the worst performing countries."
He cited a Forbes magazine report that rated Saudi Arabia 58th out of 155 countries for its standard of living. Respondents were asked how satisfied they were with their life.
Abdul Mudef, associate professor of sociology and economics at King Abdulaziz University in Jeddah, stressed the need for serious measures to save the middle class population.
He called on the government to take drastic steps to improve citizens' working conditions, support them in fulfilling their needs and implement stringent measures to curb price rises.
Underlining that the middle class is a major consumer group in the Kingdom, Mudef urged the authorities to develop a comprehensive plan to protect them from falling into poverty.
© Arab News 2010
