Stany Bela
Daijiworld Media Network – Mangaluru
Mangaluru, Jul 7: There was a time when youth said goodbye to Mumbai and started to migrate to Gulf countries for better jobs. Even though they were not highly educated, the better pay packages attracted them to the Gulf.
As per records, it was in the 80s more people started entering Gulf countries for jobs. But in the mid 90s, the flow increased and a mentality was created in India especially among the people of South India that NRI status is the only solution that will help them overcome financial burden.
Facts
As per government agencies, more than seven million Indians currently live and work in the oil-rich Gulf nations. The vast majority of them are in Saudi Arabia, UAE and Kuwait while the others are spread across Oman, Bahrain, and Qatar. However, the agencies also indicate that in recent years, there is a huge decrease of expats. Unfortunately for them (and their families), foreign lands have not ensured a brighter future.
While Kerala, Tamil Nadu and southern parts of Karnataka have the highest number of migrant workers in Dubai, a drop in spending and remittances reflects how Dubai is no longer the dream destination for Indians.
A Kerala migration survey conducted by the Centre for Development Studies, based in the region, first spotted the dip in remittances and drop in local migrants to the Gulf in 2016. Of an estimated 6 million Indians who have migrated for employment, 2.5 million are from Kerala, most working in the six Gulf countries of Bahrain, Kuwait, Qatar, Saudi Arabia, United Arab Emirates and Oman. Gulf remittances had dropped by at least 15% in the last year, with rising cases of loan defaults. Last month, in Jeddah, nearly 4,000 Indian families did not get their children re-enrolled for the next academic year. In 2014, the number of Indian migrants fell from 2.4 million to 2.24 million.
The concern of job security among the migrant community in the Gulf Countries is not exclusive to people working in MNCs. In a 2018 study conducted by the United Nations (UN) and commissioned by Democrance, an insurance technology start-up, amongst the low-income migrant workers in the UAE who earned an average salary of Dhs 4,000 and remitted money at least once every two months, revealed that job loss, and with it the worry of being unable to support families back home, were among the most frequently cited concerns by the study participants, with 35% identifying it as their number one worry, followed by stagnant salaries (19%) and health issues (13%). The survey had collected responses from 762 workers in the UAE, out of which Indians were 49% and Filipinos were 51%.
While work permit renewal fees and taxes in the Gulf have increased, ‘nationalization’ policies now give preference to locals in recruitment in some industries. The Nitaqat policy in Saudi, local preference in Kuwait, and VAT in UAE, are forcing Indian migrants in these countries to return to their motherland. However, good education and better financial condition and interest in self-employment, also attracts South Indian migrants from the Gulf region.
Challenges
Jonathan, who has been working in Kuwait for a decade now, has decided to come home says, "Now the market is slow. Sales are down, so we are not earning much commission outside our salaries. While our income has been fluctuating, our expenses are rising steadily. In Indian currency, my daughter’s school fees are close to Rs 2 lac a quarter. It is huge for us.”
Sohail, who has been working in Dubai since 2011 says, "I have been earning a handsome salary here and have invested money in India. But now I see how banks are changing rules. We need to hire three new people, but there are specific instructions to prioritize Arab nationals in recruitment. It makes us question our own job security, which is why it seems like a good idea to consider moving back to India or some other country. The rent, fines, and other expenses never allow you to save for tomorrow.”
Sadiq, who runs a hotel in Bahrain says, “Majority of Indians particularly from Kerala and Karnataka who come here for jobs have good education. Of course, in the UAE, they can get job, depending on their education. But here it is very difficult. How many days a master degree holder could adjust with a job and salary in a grocery store? After one or two years stay, they feel India is better than this country for earning. Then they leave permanently.”
Conclusion
As per the survey of GCC special committee on expats, UAE faced 33% decrease in Indian migrants while Saudi faced 74%, Kuwait 15%, Oman 37%, Qatar 58%, and Bahrain 26%. In total, it is 50% in all GCC countries. After revelation of these figures, Gulf countries are planning to introduce some policies which benefit expats, especially in employment and health sector. Meanwhile, many countries have made some changes in their visa policies to attract expats. The UAE already has declared their business policy for small scale industries by making easy licensing methods and low fees. Even then, the returning of expats continues and youth are more interested in finding jobs in new locations like African countries, Europe and the United States.