Food Expenditure Patterns for Saudis and Resident Foreigners in the Kingdom of Saudi Arabia

The purpose of this study is to analyze the differences between Saudis and resident foreigners in the pattern of expenditure on food commodities in the Kingdom of Saudi Arabia. The economic indicators provided by the study may help decision makers when they decide policies concerning the reduction of foreign labor in the Saudi economy. The study relied on cross sectional data from the family budget survey conducted in the Kingdom. Quantitative analysis and statistical tests were utilized. The results of the study showed that the average expenditures for Saudi household on bread and cereals, meat and poultry, dairy products, cooking oils and fats, and drinks were higher than those for foreign resident households. However, the average expenditures on smoking, food and drinks away from home were higher in foreign households than Saudi households, single and aggregate semi-logarithmic consumption-expenditure functions were estimated for each food commodity for Saudis and foreigners. The test of homogenity of regression was applied. Food commodities were categorized in two main groups according to the results of the test. The first group included the food commodities with consumption-expenditure functions which were different between Saudis and foreigners. These commodities were: bread and cereals, meat and poultry, dairy products, cooking oils and fats, fresh vegetables, pulses, fresh fruits, drinks, tobacco, and food away from home. The second group included the food commodities with consumption-expenditure functions which were homogenous for Saudis and foreigners. These com¬modities were fish and shell, fish, eggs, preserved and tinned vegetables, tubers, preserved and tinned fruits, sugar and sugar products, nuts, and other foods. Even though the consumption-expenditure elasticity on food, drinks, and tobacco for Saudis was equal to 0.54 which was larger than that for foreigners (0.49), yet the situation varied between com¬modities. It is expected, according to the results of this study that the reduction of foreign labor in the Kingdom of Saudi Arabia would result in a decrease in food consumption as well. The pattern of change would vary according to the commodities. The consumers of restaurants would be highly decreased. The consumption of tobacco - and accordingly its imports - would decrease. The changes in the levels of total expenditures would be accompanied with lower response in the expenditure on cooking oils and fats, and food and drinks away from home. It would also be accompanied with a higher response in the expenditure on bread and cereals, meat and poultry, dairy products, fresh vegetables, pulses, fresh fruits, and drinks