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Will Possible Labor Policies by Gulf Countries Affect Remittances to South Asia?

Ceren Ozer's picture

My entry last week gave a quick profile of the South Asian overseas workers and discussed the crucial role of remittances received from the Gulf Cooperation Council (GCC) countries (Saudi Arabia, the U.A.E, Kuwait, Qatar, Bahrain and Oman) for South Asian economies. Today I’d like to discuss whether changes in the labor market policies of the GCC countries could jeopardize job prospects for South Asian migrant workers.

Creating jobs for GCC citizens is already on the top of the agenda in some of these countries and is bound to gain more momentum with the youth bulge. Efforts to create jobs for nationals through the “nationalization of the labor market” have been further intensified as a response to the recent events in the Middle East. Across the GCC, additional policy measures are being announced highlighting the need to replace expats with nationals in private and public sector. These messages have been the strongest in Saudi Arabia, but also in the U.A.E. and Kuwait.