The Gulf remains an attractive region for jobs

It is true that expatriates struggle to save money nowadays, but that also reflects on certain realities, as to how the changing global economic dynamics are beginning to have an impact on people. Two or three decades ago, Asian expatriates in the Gulf found it rather easy to save enough for their future, even after building a house and supporting their children’s education. The economic liberalisation in India for instance, has seen multinational corporate companies setting up their businesses there, which resulted in the real estate sector booming and prices of land going through the roof. Expatriates then found it extremely hard to buy a piece of land in India, especially in the southern state of Kerala. However, their salaries mostly continued to remain the same. The cost of living also increased, with the rapid urbanisation and the shrinkage of agricultural land, thus causing the price of food supplies to go up.

The economic liberalisation during the 1990’s also witnessed an unprecedented volume of outsourcing activities being established in South Asian countries, which brought considerable financial freedom to many young graduates. The global economic recession also witnessed many companies firing their employees and in the Gulf, many expatriates found it hard to regain their previous salaries after they were fired.

The falling oil prices have now begun to contribute to a worsening situation and will likely take a toll on the savings of many. However, it is important to note that it is not only about the stagnant salaries, but also the incremental costs in home countries that cast a dull shadow on the earning power of workers.

The declining oil prices have not brought any benefits to Asian countries because their governments are keen on using this opportunity to pay off their overdraft debts and are also keeping the excess fund to restart projects. Still, it may not be all doom and gloom for expatriates, since the stability of Gulf currencies are still stronger and reserves have long-term value.

With the governments in the Gulf always working towards new initiatives, expatriates will always find this region as an attractive job market.

— The reader is an Indian business development coordinator based in Dubai.