Monday, February 21, 2005

Dozens of Indians apply for Saudi citizenship - Gulf News

Expatriates of any nationality can apply for citizenship, provided they fulfil the eligibility criteria stipulated by the Saudi authorities. This includes holding a degree in medicine, computer science or a related branch of science and technology.

Only expatriates who have lived in the country for ten or more years can apply. All applicants should be fluent in Arabic and well versed in the country's culture and traditions.

Applicants who are found providing false information will be jailed for two years and fined 30,000 Saudi Riyals (Dh29,379).

It is not typical for the oil-rich countries of the Gulf to grant citizenship. Mostly, I believe, this is due to the gold digger fear. Why would the beneficiaries of a bequest want to create other kin to share it with? (There could be political concerns as well.)

Most countries are not rentier. Even in those, however, immigration does not lift per capita income unless the immigrants bring skills complementary to the resident factors of production. Unfettered immigration does not necessarily lift per capita income. See, for example, this paper by Borjas.

Thus, the Saudis are following a targeted approach to immigration, much like the Canadian policy which targets certain skill categories.

What does not fit with the economic logic of this argument is why the Saudis are granting citizenship to people who have already proven they are willing to be there without citizenship. Are they hoping to attract new immigrants who will work for less if they know they are working towards citizenship?

I note that per capita income in Saudi Arabia is about one fifth of what it is in Qatar, Kuwait or the UAE.

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