Migrant Workers in the Gulf

Why millions of workers from India and other countries work in the Gulf, how the sponsorship system shapes their lives, and recent reforms.

The Gulf states depend heavily on migrant workers. In the UAE and Qatar, foreign residents make up the large majority of the population, and in several other Gulf states they are a large share of the workforce. Millions come from India, Pakistan, Bangladesh, Nepal, the Philippines, Egypt and other countries.

Why workers go

Wages in the Gulf, especially for construction, domestic work, retail and service jobs, are often several times what workers could earn at home. Money sent back home, called remittances, supports families and entire regions. Kerala’s economy, for example, has long been shaped by Gulf migration.

The kafala system

Many Gulf states have used the kafala, or sponsorship, system. A worker’s legal residence is tied to a sponsor, usually the employer. Under traditional rules, workers could not change jobs or leave the country without the employer’s permission. This gave employers great power and made abuse more likely.

Problems workers face

Recruitment fees: many workers pay large fees to agents at home, often borrowing, and arrive in debt.
Wage theft: late or unpaid wages.
Passport confiscation, though it is illegal in many Gulf states.
Heat stress in outdoor work.
Crowded housing.

Reforms

Several countries have introduced reforms. Qatar, under international scrutiny before hosting the 2022 FIFA World Cup, introduced a minimum wage in 2021 and allowed most workers to change jobs without employer permission. Saudi Arabia eased some sponsorship rules in 2021. Many Gulf states use wage protection systems that require salaries to be paid electronically so authorities can track them. Midday outdoor work bans during the hottest summer months are common. Implementation remains uneven, and rights groups continue to report abuses.

The cost of a job

A young man from a village pays an agent the equivalent of several months' wages for a construction job in the Gulf, borrowing from a moneylender. He spends his first year abroad repaying the debt before his family sees much money. Recruitment fees shift the cost of hiring onto the poorest party. Some origin and destination countries now try to enforce "employer pays" rules for recruitment.

Thinking migration to the Gulf only benefits employers

Many migrant workers and their families gain substantially from higher earnings and remittances. The problem is not migration itself but abusive practices, such as recruitment debt and restrictions on changing jobs, which reduce workers' gains and bargaining power.

Key takeaways

Gulf economies depend on migrant workers, who form most of the population in some states.
Higher wages and remittances draw millions from South Asia and elsewhere.
The kafala system has tied workers to employers, enabling abuse.
Reforms like Qatar's 2021 minimum wage and job mobility rules have helped, but enforcement varies.