Monday 15 February 2021

Gulf expat exodus could continue until 2023, S&P says | Reuters

Gulf expat exodus could continue until 2023, S&P says | Reuters

The population in the Gulf Cooperation Council (GCC) states declined by about 4% last year due to an exodus of expatriates after the coronavirus crisis and lower oil prices, S&P Global Ratings said in a report on Monday.

The oil producing region was hit hard last year as COVID-19 restrictions impacted non-oil economic sectors, and lower oil prices and crude output cuts weighed on its main income source.

“We expect the proportion of foreigners in the region will continue to decline through 2023 relative to the national population, because of subdued non-oil sector growth and workforce nationalization policies,” S&P said.

Gulf states rely heavily on foreign workers in sectors ranging from financial services to healthcare and construction, but efforts to nationalise the workforce to fight rising unemployment among nationals have accelerated in recent years.

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