I wrote in an earlier blog , I think last year sometime.. about the Lending business in KSA.
You see, people who cannot get loans from banks now get loans from loan sharks..who are not such vicious sharks anymore. A friend of mine who lends has payments from people he lent money to.. 27 BOUNCED cheques.. !
Yes, of course he took legal action after 6 months of waiting. But, do you know what legal action is? A vigorous , tiring, time-consuming, money consuming exercise and add to this TRAFFIC.
So these guys lend money at 10% MONTHLY return. Get this: MONTHLY. If you borrowed 100,000… you pay 10,000 each month until you return the 100k. What do you think about that? And hey, this was last year. I was just informed yesterday that people are even offering 12% return monthly on loan!
Of course: it’s RIBA
Why are we doing this to ourselves? You do realize that all of this will blow up into chaos sooner or later. I gave you money, you did not pay back and then I did not pay someone I owed too.. and a chain reaction started. Either we all wait indefinitely for each other, or we sue and live in resentment and conflict!
Add to this a few more things: Rising cost, reduced and sometimes NO income, a sharp decrease in foreign investment AND foreigners, high labor costs and sometimes NO labor..
Where will this lead to YA BABA!!!
People OWE me money. Lots of it. I can do a lot… but I will not. They have kids, families and I know no income.. they cannot pay me back even if they want to. So, why make it worse for them? Heck, I don’t even call them .. so they don’t feel bad.
You know what I think? I think , we need to start from SCRATCH again.
Honestly, I don’t know a single person who does not have account receivables or account payable or BOTH pending…
So I told you the problem. And , we all know that’s the current major problem around here.
Here is the solution:
Allow the remaining and newly arrived expats to do ANY legal business, job, work unconditionally at low FEE and be VERY flexible with Saudis running small companies. The target should be: ALL EARN AND PAY. The MOTTO should be: IF YOU EARN AND SPEND HERE, THANK YOU.. you are VERY legal.
Just a suggestion..