This trend creating severe economic strain in remittance earning countries all across. In Bangladesh remittance is one of biggest source of earnings and spending in local economy. There could be some smaller short lived surge in remittance because these returnees bringing their savings along but mid and long term impacts are severe. GCC countries no longer a "continuous" destination for labor force and remittance.
Quarter million Bangladeshi expatriate workers have returned in seven months
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DalalErMaNodi
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Alarmist garbage, the situation isn't bad in the GCC as we initially expected, I know because I'm sitting here right now.
Once air travels rules get relaxed our workers can get back to where they need to be.
A momentary setback, no some end of the world mishap.
Once air travels rules get relaxed our workers can get back to where they need to be.
A momentary setback, no some end of the world mishap.
June 30, 20204:39 AMUpdated 4 months ago
Gulf economies to shrink by 7.6% this year, IMF says
By Davide Barbuscia, Marwa Rashad
2 Min Read
DUBAI/RIYADH (Reuters) - Gulf Cooperation Council (GCC) countries will see their economies shrink by 7.6% this year, an International Monetary Fund official said on Tuesday, revising downwards April forecasts of nearly 3%.
The six GCC nations are, with varying degrees, facing steep economic declines as the slowdown in business activity due to the coronavirus pandemic is amplified by a price drop in hydrocarbons, which are their main source of revenue.
The IMF last week said Saudi Arabia’s economy - the largest in the Arab world - faces a 6.8% contraction this year, sharper than the 2.3% the Washington-based lender had forecast in April.
“We expect the GCC economies to contract by 7.6% this year, the contraction will be across all sectors, oil and non-oil,” Jihad Azour, director of the IMF’s Middle East and Central Asia Department, said on Tuesday at a virtual economic forum.
He said oil-producing countries in other regions were likely to see even larger drops.
Bahrain - one of the smallest Gulf producers - expects its economy to shrink in line with IMF forecasts, said Central Bank Governor Rasheed Mohammed al-Maraj, also speaking at the forum.
The IMF in April had projected Bahrain’s economy to contract by 3.6% this year.
Saudi Arabia’s central bank governor said instead that the kingdom expects its economy to fare better than forecast by the IMF.
Without providing a number, Ahmed al-Kholifey, governor of the Saudi Arabian Monetary Authority (SAMA), said the IMF outlook was “more pessimistic” than Saudi Arabia’s own projections.
Kholifey said SAMA was encouraging commercial banks to lend more to support businesses during the downturn and that banking indicators were reassuring, with banks’ coverage for loans at over 140% in the banking sector.
In a “worst-case scenario”, he said, non-performing loans would not exceed 4% of total loans this year.
www.reuters.com
Gulf economies to shrink by 7.6% this year, IMF says
By Davide Barbuscia, Marwa Rashad
2 Min Read
DUBAI/RIYADH (Reuters) - Gulf Cooperation Council (GCC) countries will see their economies shrink by 7.6% this year, an International Monetary Fund official said on Tuesday, revising downwards April forecasts of nearly 3%.
The six GCC nations are, with varying degrees, facing steep economic declines as the slowdown in business activity due to the coronavirus pandemic is amplified by a price drop in hydrocarbons, which are their main source of revenue.
The IMF last week said Saudi Arabia’s economy - the largest in the Arab world - faces a 6.8% contraction this year, sharper than the 2.3% the Washington-based lender had forecast in April.
“We expect the GCC economies to contract by 7.6% this year, the contraction will be across all sectors, oil and non-oil,” Jihad Azour, director of the IMF’s Middle East and Central Asia Department, said on Tuesday at a virtual economic forum.
He said oil-producing countries in other regions were likely to see even larger drops.
Bahrain - one of the smallest Gulf producers - expects its economy to shrink in line with IMF forecasts, said Central Bank Governor Rasheed Mohammed al-Maraj, also speaking at the forum.
The IMF in April had projected Bahrain’s economy to contract by 3.6% this year.
Saudi Arabia’s central bank governor said instead that the kingdom expects its economy to fare better than forecast by the IMF.
Without providing a number, Ahmed al-Kholifey, governor of the Saudi Arabian Monetary Authority (SAMA), said the IMF outlook was “more pessimistic” than Saudi Arabia’s own projections.
Kholifey said SAMA was encouraging commercial banks to lend more to support businesses during the downturn and that banking indicators were reassuring, with banks’ coverage for loans at over 140% in the banking sector.
In a “worst-case scenario”, he said, non-performing loans would not exceed 4% of total loans this year.
Gulf economies to shrink by 7.6% this year, IMF says
Gulf Cooperation Council (GCC) countries will see their economies shrink by 7.6% this year, an International Monetary Fund official said on Tuesday, revising downwards April forecasts of nearly 3%.
DalalErMaNodi
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More garbage...
Atleast in Kuwait, very few Bangladeshis left, the government of Kuwait hand locked down flights and only those people were able to leave for whom their national carriers sent planes or ships.
Bangladesh didn't do any of that, so almost 90% of all Bangladeshis are still here.
Recession or not, gulf states need us to run their countries, people will go back, wait and watch.
Atleast in Kuwait, very few Bangladeshis left, the government of Kuwait hand locked down flights and only those people were able to leave for whom their national carriers sent planes or ships.
Bangladesh didn't do any of that, so almost 90% of all Bangladeshis are still here.
Recession or not, gulf states need us to run their countries, people will go back, wait and watch.
some special people living in the gulf often adapt the camel behaviors, they tend to bury their head in the sand but unlike camel can not pull it in time.
Rest of the world though not keen in adapting camel life style. So they do extensive research and live in reality on the surface
Even Wealthy Gulf Countries Hit by Falling Oil Prices, Continuing COVID Crisis
www.voanews.com
www.spglobal.com
Rest of the world though not keen in adapting camel life style. So they do extensive research and live in reality on the surface
Even Wealthy Gulf Countries Hit by Falling Oil Prices, Continuing COVID Crisis
Even Wealthy Gulf Countries Hit by Falling Oil Prices, Continuing COVID Crisis
Many Arab countries, like Jordan, do not have the financial cushion that oil producers can draw on at this time
www.voanews.com
Industry Report Card: Twin Shocks Of Low Oil And COVID-19 Mean Double Trouble For GCC Corporates
S&P Global Ratings has seen an abrupt and severe global credit downturn caused by the COVID-19 pandemic, with corporates and infrastructure players in the Gulf Cooperation Council (GCC) countries feeling the effects. Since mid-March, we have taken negative rating actions on 16 rated regional...
www.spglobal.com
WebMaster
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Avoid the insults please, point can be made without targeting. You know the rules well.some special people living in the gulf often adapt the camel behaviors, they tend to bury their head in the sand but unlike camel can not pull it in time.
Rest of the world though not keen in adapting camel life style. So they do extensive research and live in reality on the surface
Even Wealthy Gulf Countries Hit by Falling Oil Prices, Continuing COVID Crisis
Even Wealthy Gulf Countries Hit by Falling Oil Prices, Continuing COVID Crisis
Many Arab countries, like Jordan, do not have the financial cushion that oil producers can draw on at this time
Industry Report Card: Twin Shocks Of Low Oil And COVID-19 Mean Double Trouble For GCC Corporates
S&P Global Ratings has seen an abrupt and severe global credit downturn caused by the COVID-19 pandemic, with corporates and infrastructure players in the Gulf Cooperation Council (GCC) countries feeling the effects. Since mid-March, we have taken negative rating actions on 16 rated regional...
Kuwait May Deport 360,000 Foreigners As Gulf’s Expat Exodus Continues
Dominic DudleyContributor
Business
I write about business and politics in the Middle East and beyond
Workers in the Mahboula district of Kuwait City on their way to their jobs after the lifting of ... [+]
Xinhua News Agency/Getty Images
Kuwait is preparing to force as many as 360,000 foreign workers to leave the country, according to local press reports, in the latest sign of how the Gulf expatriate labor force is bearing the brunt of an economic slowdown caused by low oil prices and the coronavirus crisis.
According to the Kuwait Times, the government and parliament are getting close to an agreement on a plan “to drastically cut the number of expats in the country”. Those being targeted include many of the most vulnerable. The newspaper cited MP Osama Al-Shaheen, a member of the National Assembly’s Manpower Resources Development Committee, as saying those at risk of being deported include 90,000 marginal and poorly-educated laborers, 120,000 undocumented workers and 150,000 expats aged over 60, with the latter group including employees, dependents and those suffering from chronic diseases.
As yet there is no clear timetable for this exodus, but it could take several years. At the same time, the government is trying to reassure the country’s own citizens they will not suffer from the economic downturn. On Monday, Finance Minister Barrak Al-Sheetan told the official KUNA news agency the "government has not taken any decisions that impact the pockets of nationals, their salaries or their rights."
Coronavirus jobs crisis
https://www.forbes.com/sites/oliver...d-remote-why-foreign-workers-are-coming-home/
As has been the case in countries around the world, the Gulf has suffered badly from the coronavirus pandemic, with businesses pulling down the shutters and sending their staff home.
The problems have been exacerbated by the collapse in oil revenues this year. But the unusual nature of Gulf societies means the pain has not been evenly distributed. While local citizens tend to be well protected from salary cuts or redundancies, the region’s large expat workforce has few defenses to a recession.
In the past, the oil-rich Gulf was a place where people from all over the world went to look for work, from low-paid laborers toiling in often unsafe conditions, to executives looking for a lifestyle unavailable back home.
Now the tables have turned. A combination of low oil revenues and the debilitating effects of the coronavirus lockdowns means a lot of jobs in the region have evaporated in the hot sun and many people are now leaving, some out of choice, others by compulsion.
In Saudi Arabia an estimated 300,000 have already left this year, according to local investment bank Jadwa Investment. That may just be the tip of the iceberg though. Jadwa says it expects around 1.2 million expat workers to leave the local labor market over the course of 2020.
Back in Kuwait, Prime Minister Sheikh Sabah Khaled Al-Hamad Al-Sabah said earlier this year he wanted to see the proportion of expatriates in his country drop from 70% to 30%, implying some 2.5 million people would have to leave.
That target may be unachievable but, even so, many are going. According to local media reports in Kuwait, some 110,000 expats left the country in a three month period from mid-March to mid-June, although some of those were visitors rather than migrant workers.
Events in Kuwait and Saudi Arabia are being echoed around the rest of the region. More than 113,000 foreigners have left Oman since the turn of the year, according to data from the country’s National Centre for Statistics and Information. Overall, the country’s expat population has shrunk by 262,000 – more than 12% – since its peak in April 2017.
In Bahrain, there was a slight fall in expat workers between June 2018 and June 2019, with a 1% drop to 594,944 at the end of that period, according to the most recent data on the website of the country’s Labor Market Regulatory Authority.
Remodeling the labor market
As the figures from Bahrain and elsewhere suggest, the economic crises of this year have accelerated a trend which had been underway for some time, as governments have tried to encourage more local citizens into private sector jobs (where expats have generally worked) and away from the public sector. That push has had limited success though. In Saudi Arabia, for example, unemployment among locals remains stuck at around 12% despite a decline in expat numbers in recent years.
Events this year mean the pace of expat departures is picking up around the region. What is not is clear is whether many of the people now leaving will come back if and when oil prices rebound and the coronavirus crisis abates. If not, that will leave the economies permanently smaller and with significant labor and skills gaps.
There are knock-on problems for other countries in the region and beyond too. Many of those leaving would have regularly sent money back to their home countries. Such remittances play a vital role in the economies of many poorer countries within the Middle East as well as Asia and Africa. As jobs have disappeared, so too have those cross-border payments.
www.forbes.com
Dominic DudleyContributor
Business
I write about business and politics in the Middle East and beyond
Workers in the Mahboula district of Kuwait City on their way to their jobs after the lifting of ... [+]
Xinhua News Agency/Getty Images
Kuwait is preparing to force as many as 360,000 foreign workers to leave the country, according to local press reports, in the latest sign of how the Gulf expatriate labor force is bearing the brunt of an economic slowdown caused by low oil prices and the coronavirus crisis.
According to the Kuwait Times, the government and parliament are getting close to an agreement on a plan “to drastically cut the number of expats in the country”. Those being targeted include many of the most vulnerable. The newspaper cited MP Osama Al-Shaheen, a member of the National Assembly’s Manpower Resources Development Committee, as saying those at risk of being deported include 90,000 marginal and poorly-educated laborers, 120,000 undocumented workers and 150,000 expats aged over 60, with the latter group including employees, dependents and those suffering from chronic diseases.
As yet there is no clear timetable for this exodus, but it could take several years. At the same time, the government is trying to reassure the country’s own citizens they will not suffer from the economic downturn. On Monday, Finance Minister Barrak Al-Sheetan told the official KUNA news agency the "government has not taken any decisions that impact the pockets of nationals, their salaries or their rights."
Coronavirus jobs crisis
https://www.forbes.com/sites/oliver...d-remote-why-foreign-workers-are-coming-home/
As has been the case in countries around the world, the Gulf has suffered badly from the coronavirus pandemic, with businesses pulling down the shutters and sending their staff home.
The problems have been exacerbated by the collapse in oil revenues this year. But the unusual nature of Gulf societies means the pain has not been evenly distributed. While local citizens tend to be well protected from salary cuts or redundancies, the region’s large expat workforce has few defenses to a recession.
In the past, the oil-rich Gulf was a place where people from all over the world went to look for work, from low-paid laborers toiling in often unsafe conditions, to executives looking for a lifestyle unavailable back home.
Now the tables have turned. A combination of low oil revenues and the debilitating effects of the coronavirus lockdowns means a lot of jobs in the region have evaporated in the hot sun and many people are now leaving, some out of choice, others by compulsion.
In Saudi Arabia an estimated 300,000 have already left this year, according to local investment bank Jadwa Investment. That may just be the tip of the iceberg though. Jadwa says it expects around 1.2 million expat workers to leave the local labor market over the course of 2020.
Back in Kuwait, Prime Minister Sheikh Sabah Khaled Al-Hamad Al-Sabah said earlier this year he wanted to see the proportion of expatriates in his country drop from 70% to 30%, implying some 2.5 million people would have to leave.
That target may be unachievable but, even so, many are going. According to local media reports in Kuwait, some 110,000 expats left the country in a three month period from mid-March to mid-June, although some of those were visitors rather than migrant workers.
Events in Kuwait and Saudi Arabia are being echoed around the rest of the region. More than 113,000 foreigners have left Oman since the turn of the year, according to data from the country’s National Centre for Statistics and Information. Overall, the country’s expat population has shrunk by 262,000 – more than 12% – since its peak in April 2017.
In Bahrain, there was a slight fall in expat workers between June 2018 and June 2019, with a 1% drop to 594,944 at the end of that period, according to the most recent data on the website of the country’s Labor Market Regulatory Authority.
Remodeling the labor market
As the figures from Bahrain and elsewhere suggest, the economic crises of this year have accelerated a trend which had been underway for some time, as governments have tried to encourage more local citizens into private sector jobs (where expats have generally worked) and away from the public sector. That push has had limited success though. In Saudi Arabia, for example, unemployment among locals remains stuck at around 12% despite a decline in expat numbers in recent years.
Events this year mean the pace of expat departures is picking up around the region. What is not is clear is whether many of the people now leaving will come back if and when oil prices rebound and the coronavirus crisis abates. If not, that will leave the economies permanently smaller and with significant labor and skills gaps.
There are knock-on problems for other countries in the region and beyond too. Many of those leaving would have regularly sent money back to their home countries. Such remittances play a vital role in the economies of many poorer countries within the Middle East as well as Asia and Africa. As jobs have disappeared, so too have those cross-border payments.
Kuwait May Deport 360,000 Foreigners As Gulf’s Expat Exodus Continues
Foreigners have been fleeing Gulf countries during the Covid-19 crisis. Will they ever come back?
www.forbes.com
DalalErMaNodi
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Saudi Arabia plans to end ‘kafala’ labour system, report says
Saudi Arabia is set to announce major labour reforms that could effectively end its controversial "kafala" system for foreign workers, reports Arabian Business quoting a news outlet close to the government.
New rules governing foreign labour are scheduled to be unveiled as early as next week and would be applied from the first half of 2021, the online Maaal newspaper reported, citing unidentified sources.
The changes were to be disclosed earlier this year but were delayed by the pandemic, according to the report.
The so-called "kafala" system -- applied to foreign employees in Gulf Arab countries for decades -- has been criticised at home and abroad as a form of indentured servitude. Some economists argue it also entrenches an imbalanced labour market, where private employers hire cheaper and more easily exploitable foreign workers even as Saudi unemployment rises.
Foreign workers in Saudi Arabia currently must be tied to a sponsor whose permission they need to change jobs, open a bank account or even to leave the country on vacation. Several neighbouring countries have taken steps to reform kafala without fully ending it.
The kingdom's Ministry of Human Resources and Social Development didn't immediately respond to a request for comment.
However, the ministry is set to hold a press conference next week to outline reforms to "increase the competitiveness, attractiveness, and flexibility of the Saudi labour market in accordance with international standards," according to the invitation sent to journalists.
Source
But Jamati Heroines will know all about the Mid East while washing cars in America, Its almost as If these BNP bootlickers want the bangladeshi economy to collapse just out of spite that their party isnt in power. pathetic mongrels.
Saudi Arabia is set to announce major labour reforms that could effectively end its controversial "kafala" system for foreign workers, reports Arabian Business quoting a news outlet close to the government.
New rules governing foreign labour are scheduled to be unveiled as early as next week and would be applied from the first half of 2021, the online Maaal newspaper reported, citing unidentified sources.
The changes were to be disclosed earlier this year but were delayed by the pandemic, according to the report.
The so-called "kafala" system -- applied to foreign employees in Gulf Arab countries for decades -- has been criticised at home and abroad as a form of indentured servitude. Some economists argue it also entrenches an imbalanced labour market, where private employers hire cheaper and more easily exploitable foreign workers even as Saudi unemployment rises.
Foreign workers in Saudi Arabia currently must be tied to a sponsor whose permission they need to change jobs, open a bank account or even to leave the country on vacation. Several neighbouring countries have taken steps to reform kafala without fully ending it.
The kingdom's Ministry of Human Resources and Social Development didn't immediately respond to a request for comment.
However, the ministry is set to hold a press conference next week to outline reforms to "increase the competitiveness, attractiveness, and flexibility of the Saudi labour market in accordance with international standards," according to the invitation sent to journalists.
Source
But Jamati Heroines will know all about the Mid East while washing cars in America, Its almost as If these BNP bootlickers want the bangladeshi economy to collapse just out of spite that their party isnt in power. pathetic mongrels.
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