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Indians in Saudi Arabia to be hit by “dependent tax”

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Indians in Saudi Arabia to be hit by “dependent tax”

[vc_row][vc_column][vc_column_text]Falling economy forces Riyadh to impose new taxes

The Saudi government, faced with growing economic crisis due to low oil prices, war against Yemen, providing Army for protecting Bahrain government from opposition onslaught and branding itself as “leader of Muslim world”, has started tough measures against expat workers in the Kingdom.

From July 1, every expat living with his family in that country will have to pay 100 riyals (approximately ₹1,723) for each member as “dependent fee” every month. The fee amount will gradually increase by 100 riyals each year till 2020, meaning that an employee will then have to shell out 400 Saudi Riyals for each dependent every month. An employee living with wife and two children, in 2020, will have to pay 1200 riyals (Approximately ₹21,000 with present exchange rates) every month as dependent fee.

Saudi Arabia gives family visa to anyone with a salary of 5000 riyals (approximately ₹90,000) and above. The average employee would hardly be able to afford keeping his family in the Kingdom.

There are nearly 41 lakh Indians in Saudi Arabia, the largest expat group in that country. This is also the largest number of Indians living in a single country abroad. Ten lakh of them are from Andhra Pradesh and Telangana.

An Indian expat living in Dammam recently said that some families have made plans to return to Hyderabad as they cannot afford to stay there any longer.

According to migrant rights activist Bheem Reddy Mandha, several families have already returned to India in the past four months. He was quoted saying “the men have become forced bachelors”.

Reports indicate that life in Saudi Arabia is becoming tougher. From July 1, the day when GST will be implemented in India, prices of beverages will increase by 100 percent. Heavy Gunah (sin) tax on tobacco products has also been recently implemented.

In recent months a large number of foreign workers were laid off because of the fall in crude oil prices. Thousands of workers from India, Pakistan, Bangladesh and Philippines faced hunger due to non-payment of salaries. Indians employed in construction, Information Technology, medical infrastructure and other sectors are believed to be rethinking their plans on staying back in that country.

To a query on the probable impact on Indian expats a senior official in the Ministry of External Affairs said nothing could be said as yet. But it will affect all expats, he added.

Ironically, the hit to Indians comes after Prime Minister Narendra Modi’s April visit to Saudi Arabia where King Salman conferred him country’s highest civilian award – the King Abdulaziz Sash. During the visit Modi also addressed Indian workers and heard their grievances.

The new taxes were announced weeks after US President Donald Trump visited Saudi Arabia signing bilateral deals worth tens of billions of dollars. A Saudi citizen, most probably living outside, criticized “Trillions for Trump and taxes for citizens”.

Saudi activist Essam al-Zamel wrote on his twitter account “after the selective tax, which come into effect in a few days, whoever smokes two packs of cigarettes a day will pay around 1500 riyals a month, equivalent to a car payment”.[/vc_column_text][/vc_column][/vc_row]

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Trump approves nearly $9 billion weapons sales to Israel, UAE and other allies amid Iran tensions

The US has fast-tracked nearly $9 billion in weapons sales to Israel, UAE and other allies as tensions linked to the Iran conflict continue despite a fragile ceasefire.

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Donald Trump statement

The United States has approved nearly $9 billion worth of weapons sales to key Middle Eastern allies, including Israel and the United Arab Emirates, amid ongoing tensions linked to the Iran conflict.

The decision, cleared by the administration of Donald Trump, includes expedited military transfers to Israel, the UAE, Qatar, and Kuwait. The approvals were granted under an emergency provision, allowing authorities to bypass the usual congressional review process.

Emergency clearance amid ongoing conflict

Officials said the move was necessary due to the evolving security situation in the region, particularly as the conflict involving Iran continues despite a fragile ceasefire. The war, which began earlier in 2026, has heightened instability across West Asia.

US Secretary of State Marco Rubio invoked emergency powers to fast-track the deals, citing urgent defence requirements for allied nations.

What the arms package includes

The approved package includes a mix of advanced defence systems and precision weapons:

  • Patriot missile defence replenishments worth over $4 billion for Qatar
  • Precision-guided weapon systems for multiple countries
  • Integrated battle command systems for Kuwait
  • Additional advanced weapons support for Israel and the UAE

The total value of these deals is estimated at over $8.6 billion, often rounded to nearly $9 billion.

Timing linked to iran war

The approval comes nearly nine weeks into the conflict involving the US, Israel, and Iran, with tensions still high despite a ceasefire that has been in place for several weeks.

Analysts note that the move signals continued US military backing for its regional allies, particularly in strengthening air defence and precision strike capabilities during uncertain conditions.

Criticism and concerns

The decision to bypass congressional oversight has drawn criticism from some quarters, particularly over transparency and the broader implications of increasing arms supplies in a conflict-prone region.

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Trump and Putin hold over 90-minute call, discuss Iran war and Ukraine conflict

Trump and Putin held a 90-minute call focusing on Iran tensions and the Ukraine conflict, with warnings over escalation and talks of ceasefire.

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Vladimir Putin and Donald Trump

US President Donald Trump and Russian President Vladimir Putin held a phone conversation lasting more than 90 minutes, focusing on escalating tensions in the Middle East and the ongoing war in Ukraine.

According to official statements, the discussion was described as “frank and businesslike,” with both leaders addressing key global security concerns. A major part of the conversation centred on the situation involving Iran and developments in the Persian Gulf.

Putin supported Trump’s decision to extend the ceasefire related to Iran, suggesting that continued restraint could create space for negotiations and help stabilise the region. However, he also issued a strong warning, stating that renewed military action by the United States or Israel could lead to “extremely damaging consequences” not only for Iran but for the wider international community.

Ukraine conflict also discussed

The leaders also discussed the ongoing war in Ukraine, which has continued for several years since Russia’s invasion in 2022. During the call, there were indications of potential efforts toward a temporary ceasefire, although no final agreement has been confirmed.

Reports suggest that the idea of a short-term pause in hostilities was explored, possibly linked to upcoming symbolic dates, but significant differences between the parties remain unresolved.

Focus on diplomacy amid global tensions

The call highlights ongoing diplomatic engagement between Washington and Moscow at a time of heightened geopolitical tensions involving both the Middle East and Eastern Europe.

While both sides acknowledged the importance of dialogue, the situation on the ground in both conflict zones remains complex, with no immediate resolution in sight.

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Trump rejects Iran peace plan as tensions rise, Tehran signals military readiness

Trump rejects Iran’s peace plan, keeping focus on nuclear concerns as Tehran signals readiness and tensions continue to rise.

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Donald Trump statement

U.S. President Donald Trump has rejected a proposal from Iran aimed at easing ongoing tensions, signaling a continued deadlock between the two countries.

The proposal reportedly included steps linked to easing restrictions around the Strait of Hormuz, a key global oil route. However, the United States declined the offer, maintaining that any agreement must address concerns related to Iran’s nuclear programme.

Washington has made it clear that resolving nuclear issues remains a priority and that partial measures without broader commitments will not be accepted.

Nuclear issue remains central

The U.S. position continues to focus on preventing Iran from advancing its nuclear capabilities. Officials believe that without a comprehensive agreement, temporary arrangements could delay a long-term resolution.

The rejection of the proposal indicates that negotiations remain stalled, with both sides holding firm on key demands.

Iran issues warning

Following the rejection, Iranian officials have issued strong statements, indicating readiness to respond if pressure from the U.S. continues.

Reports suggest that Iran has asserted its military preparedness, warning that any escalation could lead to serious consequences. The remarks reflect growing tensions as diplomatic efforts struggle to produce results.

Rising geopolitical tension

The situation remains volatile, with both countries engaged in a prolonged standoff. Measures such as restrictions on trade routes and strategic pressure points continue to impact the broader region.

The Strait of Hormuz remains a critical factor in the conflict, given its importance for global energy supplies.

Outlook uncertain

With no immediate breakthrough in sight, tensions between the United States and Iran are expected to persist. The lack of agreement on key issues, particularly the nuclear programme, continues to hinder progress toward de-escalation.

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