It is fair to claim that Gulf Cooperation Council (GCC) states are uniquely cosmopolitan by global standards judging by the extraordinary proportion of foreign nationals among local populations.
To be sure, foreign nationals make up more than half of total population in three GCC countries that is, 87 per cent in the UAE and Qatar and 69 per cent in Kuwait.
Still, the representation of foreign nationals tends to be relatively high in the other GCC countries. It is 49 per cent in Bahrain, 30 per cent in Oman and 27 per cent in Saudi Arabia.
It is believed that nationals of more than 100 countries work in Dubai.
Still, immigrant workers who work in regional economies remit funds to their countries or wherever their loved ones live, thus further strengthening the international dimension of GCC economies.
By one account, some $40 billion (Dh146.9 billion) is remitted annually from the GCC economies.
Of this, $20 billion comes from Saudi Arabia a country with more than seven million immigrant workers. In fact, Saudi Arabia ranks second in the world after the United States in terms of the size of outgoing remittances.
In reality, Saudi Arabia alone accounts for some 4.5 per cent of total global remittances.
Still, the UAE is ranked second amongst GCC economies. Immigrant workers resident in the UAE remit nearly $9 billion annually.
The balance is divided into $5 billion from Kuwait; Qatar, $4.5 billion; Oman, $900 million; and Bahrain, $600 million.
According to the World Bank, total global remittances amounted to $443 billion in 2008, with some $338 billion destined for developing countries, which was sent by some 192 million workers.
This translates into GCC countries accounting for 9 per cent of total global remittances and nearly 12 per cent of money destined to developing countries.
Concurrently, funds remitted from GCC countries comprise a sizable share of local economies.
More specifically, the $40 billion or so makes up nearly 4.5 per cent of GCC's gross domestic product (GDP).
Latest statistics put the size of GCC GDP at $880 billion. Conversely, remittances make up nearly 0.3 per cent of the United States' GDP.
India is the largest recipient of global remittances having attracted some $45 billion, according to the latest available statistics.
Lifeline
Undoubtedly, GCC economies, notably Saudi Arabia and the UAE, contribute handsomely to this amount, which provides a lifeline to millions across India.
It is believed that the total amount is higher than actually suggested, as some tend to avoid well-known sources, sending money through unofficial channels like relatives and friends leaving for home. The reasons differ but they include a desire to avoid paying fees.
Still, cash carried by workers returning home is not accounted for.
In the absence of a tax system, it is not possible to gauge the significance of amounts expatriates remit versus earned income.
However, the presence of foreign exchange houses and offices of wire services throughout GCC cities suggests that the money transfer market is significant in size. Some such offices open seven days a week. Money exchange offices earn funds from applied fees and exchange rate differentials.
Undoubtedly, expatriates should have the freedom to remit money.
In fact, many work in the region in order to guarantee the financial well-being of their loved ones in their respective countries. There are no restrictions whatsoever on the repatriation of funds in all GCC countries.
Yet, GCC governments need to adopt measures capable of encouraging foreign nationals to invest some of their earned funds in places where they work.
Money spent and invested in local economies helps address economic challenges such as job creation and satisfactory economic growth levels.
Dr Jasim Ali is a Member of Parliament in Bahrain
