Foreign workers in the Gulf pay the price of war

Millions working in the Gulf are worried about their livelihoods and the impact on their families, while their employers are worried that they will leave

Axel Rangel Garcia

Foreign workers in the Gulf pay the price of war

To empty the Gulf states of their expatriate populations would be to change them fundamentally and detrimentally. For a century, since the dawn of the oil era, migrants have poured into the Gulf from every quarter in search of jobs and opportunities in countries whose hydrocarbon wealth raised living standards. Resident populations are now increasingly reliant on this foreign labour, both at home and at work, which is why the US-Israeli war on Iran has caused such concern, with suggestions that millions could end up leaving.

According to the Gulf Statistical Centre, the total expatriate (or ‘expat’) population across the Gulf states stands at 35 million. Of these, Saudi Arabia has the most by number (16.4 million). In the United Arab Emirates and Qatar, expats comprise up to 90% of the population. In Kuwait, they make up 70%. In Saudi Arabia and Oman, it is not quite half.

The number of expats across the Gulf rose sharply during the early 21st century, driven by economic growth, with an expanding private sector, including service industries, and rising demand for domestic labour. Expats have lived through the Iran-Iraq War in the 1980s, Iraq’s occupation of Kuwait, two Gulf Wars, Gaza, and now the US-Israeli war against Iran. Although conflict creates fear among all, for expats, the anxiety is felt on a deeper level, since so much depends on the work they perform in Gulf states.

BRENDAN SMIALOWSKI / AFP
Sir Tim Clark, President of Emirates Airline, speaks during a press conference at the National Press Club 30 June 2015 in Washington, DC.

Essential roles

Expats work across a broad range of institutions and facilities. Many distinguish themselves with professionalism and expertise, holding positions of genuine importance in both the public and private sectors, employed in areas that are increasingly indispensable within the rentier economies of the Gulf. Education and healthcare rely heavily on expat labour, which often bridges domestic skills gaps. Expats also have an outsized influence in engineering, banking, and construction.

Across the Gulf, expats constitute an important source of income for their countries of origin, where their remittances account for a significant share of sovereign income in those states. In 2023, these were estimated to be worth more than $130bn. Expat fears over the US-Iran war of 2026, including its duration and consequences, are shared by their countries of origin, with several having made plans to evacuate their nationals from the Gulf if needed.

Expats are being reassured. Daily life in the region goes on, despite the damage inflicted on infrastructure from Iranian attacks and a limited number of deaths and injuries. For the Gulf states, that continuity relies on expats not returning to their countries of origin, not least because they will be needed to help repair damaged facilities once the bombing stops.

Saudi Arabia is among the most important sources of remittances to Pakistan, while the Philippines depends heavily on transfers from the UAE

In many areas, expats perform work that would otherwise go undone. Many bring their families, and a considerable number own businesses. Operating in a variety of sectors, these firms generate employment and contribute towards the Gulf states' gross domestic product (GDP).

Expat remittances

Remittances rose in 2025. In Saudi Arabia, workers sent home around $44.1bn over the course of the year, up 15% from 2024. In Kuwait, remittances during the first half of 2025 were around $8.3bn, up almost 24% from the corresponding period in 2024. India is among the biggest recipients of remittances, followed by Egypt, Bangladesh, the Philippines, and Pakistan.

The value of remittances varies from one Gulf state to another, depending on the destination country. Saudi Arabia is among the most important sources of remittances to Pakistan, for instance, while the Philippines depends heavily on transfers from Saudi Arabia, the UAE, and Kuwait (remittances account for 7% of GDP in the Philippines).

AAMIR QURESHI / AFP
A Pakistani money dealer counts US dollars notes at a money market in Islamabad on 20 April 2009. Pakistani expatriate workers wired home a record 739.4 million dollars last month.

Even if the US-Israeli war against Iran ends promptly, expats fear that the institutions in which they work may be affected, with signs that economic life has already slowed. Others think those fears may be exaggerated, with a Gulf economic rebound equally realistic once the damage caused by Iranian attacks has been repaired.

Iranian expats are particularly anxious. Around half a million Iranian expats work in the UAE alone, often in construction, mechanical trades, vehicle repair, and durable goods. The Iranian community there includes many small business owners, often with restaurants and shops. Several have amassed substantial wealth and expanded into areas like banking, finance, and hospitality.

Some worry they may be affected by decisions taken by Gulf states regarding residency and businesses, but most think there is nothing to fear. Those Gulf states know how to distinguish between those who seek an honest livelihood and those who pursue harm and destruction. They will continue to welcome the former.

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