Impact of the Financial Crisis

on Indian Migrant workers in theUAE

Presented by
Venu Rajamony, Consul General of India to Dubai
July 22, 2009
 Indians in the Gulf
• Centuries of contacts

• Around 5 million Indians in the Gulf

• First phase of inflow after oil boom

of 70’s

• Second phase in the 90’s( post

Iraq’s invasion of Kuwait)
 Indians in UAE
• Estimated around 1.5 million with 1.2 million in Dubai and Northern
Emirates

• 29.6 % of total population of 5.066 million people

• Guesstimates – Information available in public on UAE’s 2005

population census does not include nationality wise figures

• Mostly from the South Indian states - Kerala, Tamil Nadu and
Andhra Pradesh ( Estimate by Embassy based on information
provided by Exchange houses, banks and school admission
statistics )

• Around 65% belong to blue collar category

• Constitute 42.5% of the labor force in UAE

(Source: Media reports quoting National Human Resource
Development and Employment Authority, 2008)
 UAE most important destination for
Indian workers
• In 2008, UAE remained single most important
destination for Indian workers
– followed by Saudi Arabia, Oman, Qatar, Kuwait,
Malaysia and Bahrain

• Migration of workers monitored by the Indian

Protector of Emigrants rose 11.87 % in 2008 over
2007

• Inflows have kept pace with the economic growth of

UAE
SN  Country 2004 2005 2006 2007 2008 2009
(upto
30.06.2009)

 1 U. A. E. 175,262 194,412 254,774 312,695 349,827 66090

2 Saudi Arabia 123,522 99,879 134,059 195,437 228,406 151766

3 Qatar 16,325 50,222 76,324 88,483 82,937 23668

4 Oman 33,275 40,931 67,992 95,462 89,659 37632

5 Kuwait 52,064 39,124 47,449 48,467 35,562 24799

6 Bahrain 22,980 30,060 37,688 29,966 31,924 11227

All countries 474,960 548,853 676,912 809,453 8,48,601 Under

compilation

(Source: Protector General of Emigrants, New Delhi. Figures only include Indians who have not completed
school education and who obtained clearance from the Protector of Emigrants in India. Educated persons,
those who travel on visit visas to seek employment etc. are not included in these figures)
 % Variation in emmigration patterns

35.00%

30.00% 31%
25.00% 22.70%
23.30% UAE
20.00% 15.55% 19.58%
%variation

15.00% 11.87% Total of all

10.90%
countries
10.00%

5.00% 4.87%

0.00%
2005 2006 2007 2008
Years
 Emmigration to UAE as a subset of total

1,400,000
848601
1,200,000 809453

1,000,000 676912

800,000 548853
474960 All other countries
600,000 UAE

312,695 349,827
400,000
254,774
175,262 194,412
200,000

0
2,004 2005 2006 2007 2008
 Amnesty of 2007

Federal Naturalization and Residency Department

No. of persons who left the country : 174,366
Persons who legalized their status : 95,000

Indians who availed Amnesty (Dubai & Abu Dhabi)

Indians who left UAE : 95,000
Indians who regularized their status : 45,000
Impact of the Financial crisis
• 50,000 – 1,50,000 Indians are estimated to have
returned – MOIA’s statement in Parliament- airport
footfall
• NORKA – around 1100 Registered online
• Exact numbers difficult to obtain, workers do not
need to report to Consulate or Embassy before
they return
• Anecdotal accounts - number of people have
returned, many sent on leave, more likely in
coming months as projects wind down
• No signs of sudden exodus, slow flows back,
outflows will continue but at reduced pace
• Government of India closely monitoring the
situation
 Survey Results- The National
Daily
• Economic survey conducted by You Gov, an
International Research Organization
• Sample size – 821 UAE residents of mixed
nationalities, period 1st to 7th July 2009
• One in Ten report job loss, 58 % plan to stay on and
look for an another job in UAE
• Hardest hit are construction and property sectors
• 59% report freeze in salary, 88% do not expect salary
hikes this year.
• Out of the unemployed, 20% plan to return to home
country,6%will look for job in another GCC country
and 8% plan to set up business in UAE
 Informal Sector

• First impact on labor in the informal

sector

• Number of people without proper

travel documents approaching the
Consulate shot up in Jan- Feb 2009
 Informal Sector
Emergency Certificate issued in 2008 & 2009

2500
2035
2000 1732
No. of TC's issued

1500
2008
2009
1000 678 612
485
369
500
308 272 136287
188 198 200 192
0
Jan Feb Mar Apr May Jun Jul
Months

*Emergency Certificates are documents issued in lieu of missing

passports that permits one way travel to India
Emergency Certificate issued in 2008 &
2009
Months 2008 2009

Jan 188 678

Feb 198 2035

Mar 200 1732

Apr 308 369

May 272 612

Jun 192 485

Jul 287 136

Total 1645 6047

     
 Emergency Certificates issued in 2008-2009
State-wise Comparison
1000

900
AP 2008
AP 2009
800
TN 2008
700 TN 2009
Kerala 2008
600 Kerala 2009
UP 2008
500 UP 2009
Bihar 2008
400
Bihar 2009
Punjab 2008
300
Punjab 2009
200 Others 2008
Others 2009
100

0
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
 Emergency Certificates issued in 2008 &
2009 of different states
State AP   TN   Kerala   UP   Bihar   Punjab   Others  

Months 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009

Jan 82 169 51 305 27 51 9 33 6 41 3 25 1 54

Feb 87 466 63 944 29 226 6 106 4 92 5 73 4 128

Mar 65 578 72 673 36 145 7 117 9 79 2 52 9 88

Apr 120 120 111 167 55 27 8 19 6 13 3 9 5 14

May 119 203 77 256 39 46 12 31 8 22 5 17 12 37

Jun 55 162 46 145 58 39 9 36 11 41 7 27 6 35

Jul 144 47 43 35 38 23 14 7 21 11 14 5 13 8

Aug 132   33   41   11   8   4   7  

Sept 189   79   81   23   22   13   19  

Oct 71   77   56   24   29   18   22  

Nov 148   98   72   28   25   19   27  

Dec 185   62   42   31   38   27   27  

Total 1397 1745 812 2525 574 557 182 349 187 299 120 208 152 364
 Labour approvals
• Approvals by the Consulate for group
recruitment witnessed steep fall in Jan/Feb 2009
• Marginal pick up in March/ April, flat since then
• Spikes in group recruitments generally coincide
with commencements of major projects
• Minor fall in individual recruitment between
2008 and 2009
 Comparision between Group Recruitments and
Individual recruitments for the years 2008 and
2009
3500

3000
Recruitments
2500 2009
Recruitments
2000 2008

EMI 2009
1500

EMI 2008
1000

500

0
Jan Feb. Mar. Apr May Jun Jul Aug Sept Oct Nov Dec
 Comparison of Group and Individual
Recruitments for the years 2008-2009
Month 2008 2009 2008 2009

Jan 2988 162 422 79

Feb. 2286 77 195 173

Mar. 1468 436 246 166

Apr 1006 494 176 133

May 568 137 162 123

Jun 2061 147 117 114

Jul 734 162 136 48

Aug 1587   105  

Sept 256   179  

Oct 206   306  

Nov 736   175  

Dec 265   111  

Total 14161 1615 2330 836

 Transfer certificates
• Survey of Indian schools reveal that
issue of TCs increased for some,
decreased for others

• No discernable trend

• Fees more important factor than

recession
 Transfer Certificates issued by various schools in
Dubai and Northern Emirates
1200

1000

800

600

400
2007-2008
200 2008-2009

0
 Transfer Certificates issued by various
schools in Dubai and Northern Emirates
Name of School 2007-2008 2008-2009
Indian School, RAK 45 76
Our Own Indian School, DXB 140 286
New Indian School, RAK 69 9
New Indian Model School, DXB 878 758
Gulf Asian School, DXB 508 300
Indian High School, DXB 580 345
Delhi Private School, DXB 329 331
Gulf Model School, DXB 225 252
Our Own English High School, DXB 789 1089
Sharjah Indian School, Shj 878 685
The Millennium School, DXB 117 172
Delhi Private School, Shj 310 309
The Central School, Dxb 117 194
Gulf Indian High School, DXB 84 190
New Indian School, 38 42
Total 5107 5038
 Labour complaints
• Marginal decrease in numbers;1290
complaints received between January
and June 2009 as against 1570 for the
same period in 2008
• Monthly break up of labour complaints
for 2009: 241(Jan), 249 (Feb), 216 (Mar),
179 (Apr), 169 (May), 236 (Jun)
• Number evenly distributed around the
pro-rata figure of 224 in 2008
 Facts and Figures
No. of Labour Complaints received by Consulate

3000

2693
2500
N o . o f C o m p la in t s

2000 1972

1500
1408

1000
760
500

0
2005 2006 2007 2008
 Cases of acute distress
• Some instances of workers abandoned
without food or shelter

• Being addressed by Embassy/

consulate using Indian Community
Welfare Fund

• Indian Community Welfare Committee

on stand by
 UAE Official Figures
• 6,62,000 new labour Visas issued between
October 2008 and March 2009
• Only 4,05,000 cancellations during the same
period (Source: Ministry of Labour)
• Senior Government functionaries acknowledge
effect on real estate and construction sector
• Point to recovery in retail, tourism, hospitality
industries
• Companies confirm fresh recruitment, especially
in Abu Dhabi
 New Projects under way

• Masdar City
• Saadiyat Island
• Dubai Metro
• Dredging and reclamation of Khalifa Port,
Abu Dhabi
• Dubai Airport 3rd Concourse
• New Dubai International Airport
• Many other projects slated for completion
between 2012 and 2015
• Public spending given fillip by stimulus
packages, USD 70 bn infusion
 Lead employer’s prognosis
• 73725 strong workforce, 77 nationalities; 71% = 51623
Indians.
• Normal attrition rate in 2008 - 11%; 2009 till date, marginally
higher at 13%
• Recently recruited 2000 personnel for airport third
concourse project
• Outlook: 5000 workers required for same project in the next
few years; 900 for group company for new order in janitorial
services, opportunities for Indian drivers
• Huge opportunities reported in Qatar, KSA, Libya and Abu
Dhabi
• Only change - conservatism in recruitment: recruit against
awarded projects as against anticipated project earlier
• Changes in metro and coastal India, people no longer eager
to migrate - GCC jobs still attractive in rural India
 A reality check
• Unemployment at 4 % in 2008 (3.45% in 2007) source:
Ministry of Economy survey

• 12.7% - 40,000 qualified Emiratis jobless

• Debate over presence of foreigners diluting national

identity

• Efforts at Demographic Balancing will affect India

• Discussions on ban for workers after six years

•
• Permanent residency for migrants not under consideration
 Opportunities in India more
important
• Pace of India’s economic growth and rise in salaries in
India more important in long term than recession
• Reverse migration had begun even before recession
• Attractive salaries and opportunities for professionals
and knowledge workers in India
• Rising cost of living in UAE, especially Dubai - Cost
of accommodation, services, education
• Efforts of both Governments to curb illegal recruitment
• Boom in Real Estate, Construction, Retail sectors in
India- areas in which Indians in UAE have skills and
experience Many Indian Companies have been
recruiting in the Gulf in recent years
• India has shortage of professionals and skilled
manpower in many sectors and regions
 Return of Migrants- some
suggestions
• Need for better data base
• Guild data bases can be created for meeting
existing supply deficits in specialized labour
markets in India
• Extension components to central schemes
like NREG and state initiatives like
Kumdumbasri can be explored
• Entrepreneurship training/Literacy/Computer
skills/English language skills while in UAE
Measures to deal with the crisis by the
Embassy/Consulate
• Monitoring situation
• Facilitating quick return to India of workers who
want to return and don’t have the means
• Close Interaction with major employers of Indian
workers, UAE Ministry of Labour / Departments of
Immigration and Police
• Financial assistance to individuals for food, shelter,
medical expenses and repatriation to India through
ICWF
• Coordination with MOIA / authorities in the sending States
• Intervention with employers, Banks etc to resolve
disputes
Indian Government and Missions playing pro-
active role for some time now

• Comprehensive measures already in

place – can deal with any situation
Measures undertaken by Embassy/ Consulate in
UAE
 Indian Community Welfare Committee

 Counseling for persons prone to

depression/ suicide
 Free legal counseling

 Hotline/Shelter for women in distress

 Organization of free medical camps

 Visits to labor camps, hospitals, prisons

 Indian workers abroad must be able
to live and work with dignity
• General consensus that Indian workers should stay abroad
only if :
– Rights are protected
– Can live and work with dignity
– Assured of reasonable wages

- Workers who lose jobs and cannot find alternative

employment should return
- Government will support their return and re-integration
 India’s advantages
will remain
India large reservoir of high quality human
resources in immediate neighborhood

Workers have reputation of being competent,

hardworking, sincere and law abiding

Cultural compatibility/ Language skills

 Two way flows will become more
common

India’s GDP anticipated to grow by 6-7%

despite the financial crisis

Sectors with most promise – Infrastructure,

real estate, retail and hospitality, areas where
UAE has made a mark
 Summing Up
• Migration from India has been a natural and
spontaneous flow in response to economic need of
host countries in the Gulf

• Financial crisis has had some impact but no cause for

panic or alarm

• UAE leadership and Government engaged in task of

re-energizing their economy- growth expected to pick
up

• Migration from India to UAE will continue, albeit at

lower pace
Thank you