Amna Puri-Mirza
Research Expert covering the Middle East
Foreign workforce in the Gulf Cooperation Council
The workforce of the Gulf Cooperation Council has been shaped by the increased economic prosperity deriving from crude oil and other hydrocarbon products since the early 1960s, as well as the Gulf countries final independence from the United Kingdom in 1971. In order to utilize the revenue from oil to establish and modernize those new states, a workforce from abroad was needed to tackle those tasks.
Most of the migrant workers who came to the oil-rich Gulf countries hailed from the South Asian subcontinent and Southeast Asia. Today the workforce in the Gulf Cooperation Council countries ranges from 76 percent foreigners in Saudi Arabia to 95 percent foreigners in Qatar.
Labor market structure Although all six Gulf Cooperation Council states have implemented in their ruling bodies some forms of democratic procedures, all of those governments are, however, led by monarchs (in the form of kingdoms in Saudi Arabia and Bahrain, a sultanate in Oman, and emirates in the UAE, Qatar, and Kuwait). This is also why those states adopted a national income stream of a rentier state rather than sourcing state income through taxation from citizens. Most migrant workers and expatriates enter the Gulf Cooperation Council countries with work-sponsored visas. For example, most work-sponsored visas in Saudi Arabia were issued for workers in the private sector. The majority of work visas issued in Saudi Arabia were for men.
In general, citizens of the Gulf Cooperation Council countries are employed in the public sector. Furthermore, the female labor participation rate of nationals is among the lowest worldwide. As oil revenues dwindle, the GCC states are looking into diversifying their economies with additional revenue streams, including tax. They are all implementing reform policies to increase the employment rate of their citizens, especially in the private and service sectors. Those policies are known as Saudization in Saudi Arabia and Emiratization in the United Arab Emirates.
Labor market structure Although all six Gulf Cooperation Council states have implemented in their ruling bodies some forms of democratic procedures, all of those governments are, however, led by monarchs (in the form of kingdoms in Saudi Arabia and Bahrain, a sultanate in Oman, and emirates in the UAE, Qatar, and Kuwait). This is also why those states adopted a national income stream of a rentier state rather than sourcing state income through taxation from citizens. Most migrant workers and expatriates enter the Gulf Cooperation Council countries with work-sponsored visas. For example, most work-sponsored visas in Saudi Arabia were issued for workers in the private sector. The majority of work visas issued in Saudi Arabia were for men.
In general, citizens of the Gulf Cooperation Council countries are employed in the public sector. Furthermore, the female labor participation rate of nationals is among the lowest worldwide. As oil revenues dwindle, the GCC states are looking into diversifying their economies with additional revenue streams, including tax. They are all implementing reform policies to increase the employment rate of their citizens, especially in the private and service sectors. Those policies are known as Saudization in Saudi Arabia and Emiratization in the United Arab Emirates.
Expatriate life in GCC
The Gulf Cooperation Council region is also a well-known destination for highly skilled expatriated workers. However, the experience of living and working in the region range from country to country. According to a global survey of expatriates worldwide, the United Arab Emirates ranks among the top five destinations for working abroad and quality of life. At the same, expatriates considered Kuwait as the country with the lowest quality of life for expatriates worldwide.Amna Puri-Mirza
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Feb 27, 2024
Amna Puri-Mirza
Research Expert covering the Middle East
