The Economic Collision Course of Gulf Migrant Labor


The Iran war foreign workers Middle East double brunt extends far beyond the missile strikes and military escalation. For countries like Bangladesh, Nepal, and the Philippines, the crisis threatens the economic lifeline of remittances—money sent home by millions of workers that sustains entire villages and pays for education, housing, and food. As the conflict grinds on, experts warn of a coming economic shock that could destabilize South Asia's most vulnerable populations.

What is the double burden facing South Asian laborers in the Gulf?

The "double burden" describes the impossible calculus confronting foreign workers: remain in a conflict zone where at least two dozen laborers have already been killed, or return home to countries where war-induced inflation has made basic survival unaffordable. As reported by the Associated Press, Mamun's family in Bangladesh now struggles to recover his wages, with his widow Sadia Islam Sarmin telling reporters: "We don't know what we will do next"

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What happens to remittances when Gulf economies collapse?

A slowdown in key sectors like real estate and construction will hit migrant workers directly, said Shariful Islam Hasan of the Bangladeshi development organization BRAC. Workers from Bangladesh and Pakistan are especially vulnerable, as they are often employed informally and without fixed contracts. The labor coalition has warned that some employers may use the conflict to withhold wages, deny leave, or carry out arbitrary dismissals.

How many foreign workers face potential job losses in the Gulf?

While exact figures remain fluid, the scale is staggering. Approximately 240,000 to 340,000 overseas Filipino workers alone could lose their jobs if the war continues, with a worst-case scenario seeing up to 550,000 Filipinos needing to leave the region. The Philippine government had repatriated nearly 2,000 workers and dependents as of late March, with numbers expected to rise significantly.

Why are Gulf countries unable to fully protect foreign workers?

Despite reforms in countries like Qatar and the UAE, foreign workers often lack basic protections. The Coalition for Labour Justice for Migrants in the Gulf reports that few workers had access to bomb shelters, and many were stranded by the conflict. Work permits remain tied to single employers in some cases, effectively trapping workers who wish to flee but cannot risk losing their legal status.

How does the Iran war affect workers' families back home?

The human cost extends thousands of miles from the conflict zone. Mamun's mother, Shahida Khatun, urged her son to come home when the war began. He had been saving since November, promising his siblings he would pay for their studies and build a larger house. "The pain of losing a child. There are no words to describe the agony," she told the Associated Press. His 6-year-old son, whom he met only once, now faces life without a father.

Frequently Asked Questions About Economic Impact on Migrant Workers

How does the Iran war affect foreign workers' ability to send remittances?
Remittances from the Gulf constitute 3-5% of GDP in Bangladesh, Pakistan, and Sri Lanka, and nearly 10% in Nepal. With Gulf economies contracting and travel disrupted, many workers like Ahmed al-Aliyli, a taxi driver in Qatar, have not sent money home for months.

What is the economic impact of the Iran war on Bangladesh?
Remittances from Gulf workers are a cornerstone of Bangladesh's economy. With workers unable to send money home due to job losses or reduced income, household incomes are strained at a time when war-induced price spikes have made food and fertilizer more expensive.

Why can't informal workers access protections during war?
Workers from Bangladesh and Pakistan are especially vulnerable because they are often employed informally and without fixed contracts, according to BRAC's Shariful Islam Hasan. This makes them ineligible for whatever limited protections exist.

Are Gulf countries doing enough to protect foreign workers?
Qatar enacted reforms before the 2022 World Cup, partially dismantling the kafala system. However, activists say abuses are still widespread and workers have few avenues to pursue justice. The UAE continues to emphasize the safety of all residents on its soil..

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