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Gulf Employers Choosing Africans Over Indians
- By Bobby Castro
- Published 01/4/2012
- Destinations
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Bobby Castro
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Gulf Employers Choosing Africans Over Indians
In an alarming tend, many Gulf States are opting to employ Africans instead of Indians, Pakistanis, Nepalis and Bangladeshis. This may adversely affect the remittances of many NRIs to India and neighboring countries.
According to the Migration and Remittance Expert at the World Bank, Dilip Ratha, "Migration from Africa to the Gulf region will increase significantly in coming years. The Africans are giving tough competition to our expatriates."
He added that many Gulf state governments have directed companies and institutions to diversify the source of workers employed in their companies as many have become sensitive to the recent issues in other Arab countries.
According to recent statistics, Indians are the largest expatriate community in many Gulf countries and they are projected to number around six million. In many other countries, such as UAE and Qatar, the number of Indian nationals are greater than the indigenous population. Many of middle management workers also are held by Indian workers in many countries throughout the region.
The demand for Indian workers increased tremendously after the oil boom of the 1990s. Many firms and officers in Gulf companies find it easier to deal with Indian nationals but the diversification is not only the major issue that make other firms seek elsewhere for skilled workers. Many Indians seek higher wages because of the better opportunities available back in the Indian subcontinent.
Another major factor is the strengthening of ties between Gulf States and African governments especially regarding liberalization of employment laws. Dilip continues, "In Africa, the migration is mostly intra-regional. Almost two thirds of international migration from Africa is within Africa. As a result, remittance flows to African countries have remained largely unaffected due to the global slowdown."
According to the latest statistics from the World Bank, remittance flows to Sub-Saharan Africa have increased significantly in 2011, despite the Arab Spring issues and the financial crises in Europe, the United States and some Gulf state countries. On the other hand, India ranks first in terms of remittances to the home country, which the World Bank has estimated to increase to $58 billion in 2011 alone compared to just $55 billion in 2010.
Despite such issues, Indians remain one of the top choices because of the low cost and high education and skills. One of the drawbacks from Africa is the lack of consistent skilled workers being available owing to the many generations of civil unrest and the communication barriers between employers and prospective employees.
According to the Migration and Remittance Expert at the World Bank, Dilip Ratha, "Migration from Africa to the Gulf region will increase significantly in coming years. The Africans are giving tough competition to our expatriates."
He added that many Gulf state governments have directed companies and institutions to diversify the source of workers employed in their companies as many have become sensitive to the recent issues in other Arab countries.
According to recent statistics, Indians are the largest expatriate community in many Gulf countries and they are projected to number around six million. In many other countries, such as UAE and Qatar, the number of Indian nationals are greater than the indigenous population. Many of middle management workers also are held by Indian workers in many countries throughout the region.
The demand for Indian workers increased tremendously after the oil boom of the 1990s. Many firms and officers in Gulf companies find it easier to deal with Indian nationals but the diversification is not only the major issue that make other firms seek elsewhere for skilled workers. Many Indians seek higher wages because of the better opportunities available back in the Indian subcontinent.
Another major factor is the strengthening of ties between Gulf States and African governments especially regarding liberalization of employment laws. Dilip continues, "In Africa, the migration is mostly intra-regional. Almost two thirds of international migration from Africa is within Africa. As a result, remittance flows to African countries have remained largely unaffected due to the global slowdown."
According to the latest statistics from the World Bank, remittance flows to Sub-Saharan Africa have increased significantly in 2011, despite the Arab Spring issues and the financial crises in Europe, the United States and some Gulf state countries. On the other hand, India ranks first in terms of remittances to the home country, which the World Bank has estimated to increase to $58 billion in 2011 alone compared to just $55 billion in 2010.
Despite such issues, Indians remain one of the top choices because of the low cost and high education and skills. One of the drawbacks from Africa is the lack of consistent skilled workers being available owing to the many generations of civil unrest and the communication barriers between employers and prospective employees.