Despite regional political turmoil and global economic slowdown, demand for foreign workers remains high in the Gulf region, according to a study by Western Union, a leader in money transfer and global payment services.

The study titled ‘The Economic Impact of the Uprisings in the MENA Region’ said economic forecasts for Gulf Cooperation Council (GCC) countries are much better that those for the Middle East North Africa region (MENA) as a whole, and in fact have been positive. GCC countries are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

“Despite the political uprisings and civil unrest in some parts of the Middle East and North Africa, the region is still witnessing moderate growth, and in the Gulf countries there is an even stronger imperative to sustain economic growth and meet social needs. We expect opportunities for international workers to remain strong and with that remittance flows from host to home countries.” said Jean-Claude Farah, Western Union’s senior vice president for the Middle East and Africa.

“The Asia Pacific region has been a significant source of labour for Gulf countries — led by India, Philippines, Bangladesh, Indonesia, Sri Lanka, Malaysia, Thailand and Nepal. This study should instil greater confidence for global workers seeking employment in these countries”, said Drina Yue, Western Union’s managing director and senior vice president, Asia Pacific. The study’s lead author, Ahmed Farouk Ghoneim, professor of economics at Cairo University, said the real GDP growth in the GCC was expected to remain strong despite short-term disturbances.  According to Ghoneim, countries in the region have limited exposure to the international financial crisis. “In relative terms, the financial crisis and oil and food price increases have had only mild effects on MENA economies, owing to their limited integration into the world economy,” he said.

Published on: 29 June 2012 | The Kathmandu Post