The Gulf States’ Expat Dividend
The extraordinarily high proportion of foreign labor in the Gulf states is often considered problematic, because it threatens local cultures and national identities, holds down wages, and impedes the development of domestic skills and talent. But the Gulf States’ large foreign populations aren't just workers; they're also consumers.
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PARIS – How should policymakers in the Middle East’s Gulf States manage their countries’ large expatriate workforces? In Saudi Arabia, foreign nationals account for roughly one-third of the population. In Qatar and the United Arab Emirates, nine out of every ten residents is an expatriate. Should these countries’ governments continue to invest heavily in developing indigenous labor forces, with the aim of decreasing dependency on foreign workers?