Attacks drive out foreign workers

An exodus would hurt the Saudi economy, experts say.
CHRISTIAN SCIENCE MONITOR
JIDDA, Saudi Arabia -- Larry Thaxter returned to Saudi Arabia in August after being evacuated with the other Western staff of the Saudi Arabian International School last spring.
He thought last year's car-bomb attack on Western compounds in the capital Riyadh, which killed 35 people, was an isolated case. But despite a massive security crackdown since then, Westerners continue to be targeted by suspected Al-Qaida militants, most recently at a grisly shootout in the industrial city of Yanbu on the Red Sea over the weekend.
The attacks are intended to sow fear and are causing many Western workers to consider whether the higher pay and perks of living here are worth it. If an abrupt exodus of foreigners occurred, the Saudi economy would suffer, economists say.
"We thought the Saudis had things under control. But it seems the situation is bigger than they thought it was," said Thaxter, the school's principal, who comes from Alberta, Canada.
Since last May, there have been two major attacks, on a housing compound and on the police headquarters in Riyadh last month, followed by a two-day shootout in Jidda.
Details of shooting
But the most disturbing of the attacks was Saturday morning's strike in Yanbu at a refinery project owned by Exxon-Mobil and Saudi petrochemical firm Sabic. Gunmen entered the offices of ABB-Lummus, a subsidiary of a Swiss engineering company, and started firing.
Two Americans, two Britons, an Australian and a Saudi were killed. Four of the attackers were later killed in a shootout with police after a car chase across Yanbu in which they also shot at a McDonald's. According to the local press, one of the dead Westerners was tied to a car and dragged for more a mile through the streets of Yanbu.
The attack, widely reported, has had an impact. All 90 employees of ABB-Lummus have decided they want to go home.
"We offered them heightened security, we offered to take over security ourselves, but every single one preferred to leave," said Bjorn Edlund, spokesman for ABB, speaking from Zurich.
The group, mostly Americans, with some Australians, Europeans, Indians and Filipinos, will depart with their families over the next couple of days.
The benefits
Most foreign citizens who work for multinational firms in Saudi Arabia earn tax-free salaries and get overseas premiums. Their children attend private schools at company cost, and employees here get other generous benefits not found at home. But that may no longer be enough to keep some Americans here.
If others follow the trend of ABB-Lummus' employees, the Saudi economy could be seriously hurt, economists say.
"There are an estimated 38,000 Westerners working mostly in management or as experts in the oil, banking and finance, and medical sectors," said Omar Bagour, a professor of economics at King Abdul-Aziz University.
These sectors are the main income generators in the Saudi economy, and oil alone accounts for 80 percent of Saudi income, he said. "If they [Westerners] decide to leave in the span of one month, it would cause a drop of about 50 percent in estimated economic growth for 2004."
Bagour said there are very few Saudis available to replace the expertise of departing Westerners, both in the energy sector as well as in other areas such as the medical field.
By local estimates, several thousand foreigners left after last year's compound attack, and last month about 25 nonessential personnel and families of American diplomats returned home after an ordered departure.
But so far there hasn't been a mass exodus. Many know that such threats come with the territory. They know that the Saudi government and their companies are bolstering security. But another major attack targeting foreigners could change minds quickly.