The coming times may be quite challenging for millions of Indian expatriates working in Gulf countries. Due to the increasing regional tension between Iran and Israel, it is feared that big economies like Qatar, Kuwait and UAE will be adversely affected. Experts believe that if the war situation prolongs, it will have a direct impact on the jobs and income of the migrants living there. Contrary to the news of massive recruitment going on on social media, the ground reality remains worrying regarding security and economic stability.
What will be the impact on the economy and jobs in case of war?
The biggest impact of regional tension can be seen on the GDP of Gulf countries. Economic experts have issued some main warnings for this:
Due to disruption in the Strait of Hormuz, there could be a huge decline of up to 14% in the GDP of Qatar and Kuwait. The economy of Saudi Arabia is estimated to decline by 3% and that of the United Arab Emirates (UAE) by 5%. This could prove to be the biggest economic crisis since the 1990s, which could bring wage growth to a halt. Countries like Nepal have currently suspended labor clearance for countries like Kuwait, Iraq and Lebanon due to security concerns.
UAE’s new rules and arrangements made for security
The UAE Government and the Government of India have taken some important steps to protect the interests of expatriates. On 14 March 2026, the UAE Ministry of Human Resources (MOHRE) has confirmed the strength of the labor market. Companies have been instructed to use safety protocols and remote work options as per the circumstances. The Government of India has also created a safety net for workers through the Pravasi Bharatiya Bima Yojana (PBBY) and minimum referral wage. In countries without minimum wage laws, a standard of $300 to $600 has been set so that Indian workers can be protected from financial loss in case of any crisis.
