JEDDAH/RIYADH: Saudi and expatriate workers in the public sector have expressed fears that they will not be eligible for housing allowance soon, as an expected discussion on this issue in the Shoura Council has been delayed.
The Shoura Council on Monday adjourned talks on the issue due to lack of time, according to Council Chairman Abdullah Al-Asheikh.
The allowance would only include government sector employees, not expatriates and Saudis working in the private sector.
Many working in the private sector are calling for a minimum amount as house rent allowance.
Though Saudis are still waiting for the housing allowance decision to be approved by the Shoura Council, some are not optimistic. Some council members voiced reservations that this new provision would put a strain on the government budget.
The estimated cost of this allowance could reach up to SR17 million.
The recommendation presented by Mohammad Al-Quaihis, a member of the council's housing, water and general services committee, suggested that government employees should receive three months' worth of pay as housing allowance, pointing out that 50 to 60 percent of public sector workers do not own houses.
The recommendation was to be put up for discussion and voting, but was postponed. The delay triggered rumors that the recommendation would be vetoed or diluted during the debate.
Chairman of the National Society of Human Rights (NSHR) Moflih Al-Qahtani expressed his hope that the Shoura would approve the decision. Al-Qahtani described the proposal as essential to help citizens meet high rental costs while also supporting those who have taken housing loans.
"There are some government employees who receive housing allowances, therefore it is fair for all employees to receive it," said Al-Qahtani, adding that the pros outweigh the cons.
However, private sector employees oppose the proposal for fear that average rent levels would increase across the country.
Ali Al-Tayyar, a Saudi teacher at a government school in Jeddah, confirmed that such a decision would increase his salary by 15 percent. He said that he was living in his father's building, so he would benefit from the housing allowance without paying anything for the apartment.
"Although I do not need the housing allowance, I do need this money, as my salary is only SR7,000."
Abdullah Al-Zahrani, a private sector employee, said he was against such a step: "The decision could raise real estate prices, while my benefits remain the same."
Mohammed Al-Youssef, a real estate officer and owner of five buildings in Jeddah, confirmed experts were expecting a hike in real estate prices.
"I won't increase prices until I make sure all prices of the buildings around mine go up," he said. "Most tenants, especially expatriates, phoned me to ask whether I was going to increase the rent or not."
Al-Youssef agreed that expatriates and private sector employees would be the real victims if the decision is implemented.
Salem Al-Ramahi, a Jordanian doctor who rents an apartment in Jeddah's Al-Bawadi district, confirmed that he moves from one apartment to another every three years because of the steep hike in rents.
"I have been living in my apartment for two years and pay SR27,000 a year. The three-room apartment is very small, but it's new. When I met the owner recently, he told me that the prices might increase in the new contract, because the Shoura Council could approve a housing allowance for public sector employees," he said.
"When I told him that I would not benefit from the decision, he said that these were general prices and he had nothing to do with it."
Saeid Bogar, a real estate dealer, confirmed that most building owners told him their prices would increase by about SR2,000 starting from next year.
"All owners have decided to increase the prices starting from 2012. Not only will rents increase, but building prices as well," said Bogar.
Faten Bukhari, a Saudi doctor who works in a government hospital, confirmed that she was not receiving housing allowances because she is single. She expressed fear of price increases, as she might be unable to pay for her apartment.
"I am the one in charge of paying apartment fees for my family, because my father is not alive anymore. Despite the fact that medical sector employees do receive allowances, as a single person I do not. That's why I will not benefit from the housing allowances," she said.
© Arab News 2011
