While financial and economic crises are nothing new to global economies, the current crisis resulting from the outbreak of the novel coronavirus is causing many institutions to push countries to reconsider some of their policies and decisions that they deal with at the local and external levels.
In the Gulf region, the issue of financial transfers (remittances) sent by foreign workers to their home countries has once again surface. It comes at a time when GCC States are forced to borrow from international funds to meet their annual financial obligations.
Despite the decline in the number of foreign workers in the private sector in the GCC States over the last decade, their number is on the rise in government institutions, as is evident from a survey by the “Mobaiher “institution. The survey shows the size of the remittances by expatriates in the GCC States over the past decades.
At the end of the first quarter of 2019, the remittances decreased by 9.97 per cent on an annual basis to reach $24.71 billion, compared to $27.44 billion in the corresponding period of 2018.
GCC States have been able during the last decade to issue several decisions to enable local citizens to work in private institutions and companies, and organised programmes of training and rehabilitation for local workers to take their jobs instead of expatriates.
Also they have discussed the subject of financial transfers, among other issues.
The decisions taken by the GCC countries have already led to a reduction in some numbers of migrant workers, except the State of Qatar as a result of the projects undertaken in preparation for hosting the 2022 World Cup.
Remittances from the GCC countries are mostly handled by important official channels including the banks, financial banking institutions, and directly through people travelling by air or through the purchase of gold. Occasionally, smuggling may play a part, although these activities are unearthed from time to time.
The GCC countries are no exception when it comes to remittances. It is commonplace wherever there are expatriate communities.
The World Bank data indicate that workers’ remittances to the low and medium income countries have increased by 9.6 per cent in 2018 to reach at $529 billion, comparing with $483 billion in 2017, of which about $79 billion has gone to India, followed by China with $67 billion, Mexico $36 billion, Philippines $34 billion, and Egypt $29 billion in addition to some other countries.
It is expected to reach $550 billion in 2019. The GCC countries are considered among some other countries through which these funds are transferred annually.
Financial transfers to high - income countries increased 8.55 per cent in 2018 to $689 billion, compared to $ 633 billion in 2017.
The GCC countries have been seeking for several decades to replace national workers in institutions and maintain social stability in the light of the annual educational outcomes for their nationals from colleges and universities, which require providing more work opportunities for the population on the one hand, and maintaining money in the internal financial channels on the other hand.
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