Problems Faced By Expatriates On The Gcc Economics Essay

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The chance of coming to UAE or any other GCC province looks fantastic and attractive to an foreigner. But there is another side to this glamor and glister of GCC. UAE is considered as a favourable finish for many exiles. Due to this popularity of UAE, the expat population is supposed to lift at 84.5 % of the entire population in 2030 harmonizing to a study published by euro proctor international. The passage of Exiles from their place state to UAE is non ever smooth. Tough challenges are faced by them on the first twenty-four hours that they set foot UAE ‘s land ( BENSON, 2012 ) . These challenges can be high cost of life, expensive wellness attention, jobs of socialisation, cultural differences and solitariness. Harmonizing to recent statistics the population of exiles stood around about 7. 316 million, accounting for a sum of 88.5 % of the UAE ‘s entire population. The rate of inflow of exiles in expected to lift at an increasing tendency for old ages to come.

Such high Numberss of exiles are faced with legion jobs which halt their advancement temporarily in these provinces. The GCC is seeking to assist these exiles in seting them in their provinces.


Goal 1:

Establishing proper community centres for exiles where they can interact and socialise.

Goal 2:

Creation of authorities funded undertakings to assist absorb exiles into their civilization and societal environment.

Goal 3:

Provision of inducements by the authorities to expats in different sectors such as wellness attention and employment sector.

Policy Options:

P1: No policy

The current wellness attention cost is non attractive plenty for exiles and comes with strings attached. Ongoing programs for the constitution of community centres ( Baltaji, february ) ; the current aim of the authorities is to set up community centres for expat population to assist them in seting to this environment.

P2: Eliminating cultural clangs.

The authorities should present different educational plans for exiles to assist them understand the civilization of GCC. Every state in the universe has a different civilization ( KUNJHIBAVA, 2011 ) which might ensue in a cultural clang. That is why it is of import to assist expat understand the GCC civilization to do their accommodation procedure smooth and self-generated.

P3: The authorities should diminish the cost associated with health care.

Health attention is a really expensive sector in the GCC which poses a major job particularly for exiles. Health attention is considered the most of import sector in any economic system and is considered a necessity for people. By presenting public assistance and fiscal inducements along with the exile even the native population can acquire benefit.

P4: The costs associated with belongings, particularly places and flats should be managed.

The major part of life cost comes due to expensive lodging and existent estate in GCC. For exiles who are looking to settle, they find it as a major hurdle. Government should work on this facet to assist these exiles.


Problem background

Problem background

UAE is among the biggest expatriates community of the universe, and is known for offering fantastic installations to the aliens. There are huge chances for exiles in these types of provinces. Due to this ground more than 80 % of the UAE population consists of exiles. The ratio of exiles compared to the ARAB subjects populating in these provinces is well high. This high inflow of exiles into these provinces creates legion jobs for them. For these exiles who are going to these provinces the accommodation process into this whole new environment proves to be a monumental undertaking ( NEWS, 2012 ) . For a normal individual populating outside these provinces it might look to him or her that expats live a really fancy life at that place. Although this holds true for some instances, it is non a norm for all of them. There are people who being exiles are really rich and so there are those exiles who sometimes sleep on the benches in the park. The whole life chance depends upon the kin vitamin D of chances that were available to them at that peculiar clip ( NUMBEO, 2013 ) . Some exiles capitalize on these chances while others are left behind ; this creates a serious rift between the expat communities in these provinces. As a consequence the whole “ Adjusting in ” process becomes a really difficult undertaking.

This is non ever the instance in all of the states around the universe. Welfare provinces like Canada and United Kingdom really offers huge chances and prepositions for people who are looking to settle at that place, or in simpler footings for exiles. In relation to these states GCC provinces does non offer much chances to the Expats. Harmonizing to the agency of statistics states like Canada, England and Australia who are amongst the universe ‘s biggest public assistance provinces ( News, 2011 ) , are really capitalising on the inflow of exiles in their systems. Therefore by looking at these conditions it would look that exiles in these mentioned states do non confront much challenges, the instance is different in chance of GCC provinces. Although GCC capitalizes in immense beginnings of manual labour that is provided by the exiles, but it still does non wholly extracts the benefits from these workers like those states. This issue is snowballing twenty-four hours by twenty-four hours into a much larger and serious job.

By looking from the position of exiles these jobs propose a major reverse for them. If these jobs or challenges are non treated or remedied, they might go a major negative facet of these provinces that can be them a immense loss ( annabelkantaria, 2011 ) in footings of human resource. Every job has a solution that can assist in its riddance. If the challenges for jobs faced by these exiles are investigated and probed on decently so it will show a aureate hereafter for both the province and the Expat. It is a win-win state of affairs.

2. The Seriousness of the Problem

In order to measure the deductions of this job, we foremost need to find how serious it is. The job for the challenges faced by exiles is merely non related to a individual factor instead this job shoots off in several different waies ( BENSON, 2012 ) that encompasses factors from societal, political and economic environment. This means that the range of this job is immense and it needs to be dealt with instantly.

Several factors that are portion of these challenges faced by exiles include


When an exile leaves his place state behind the major job that he faces in GCC provinces is of solitariness. Harmonizing to study performed 38.71 % of the people voted the facet of solitariness as a major job for the exiles ( KUNJHIBAVA, 2011 ) . There are many different factors that contribute to this job of solitariness includes cultural differences, different communities, separate societal interactions, absence of household, and the other highs and depressions present in the societal environment. When an Expat does non set in himself or herself harmonizing to the factors he or she faces a dull emotional province that is called solitariness.

Many of the people are tempted to travel overseas for employment chances and money without proper readying and research into that state ‘s Torahs and ordinances. Those people who instantly land a occupation when they get in these provinces might non experience loneliness nevertheless, those people who have left their households behind and they do non set down a occupation instantly ( NEWS, 2012 ) might endure turns of utmost solitariness. It is non frequently necessary that solitariness means being entirely sometimes people feel loneliness even in crowded assemblages. These jobs present a major obstruction in the advancement of these persons. On top of that if there are no societal plans for these exiles it might go a immense job for them.

Cost of Life

When expats come to these GCC provinces fundss are a major concern for them. A new life overseas and the cost of life associated with it amounts to a bulk if their disbursal or expenditures. It does non count what sort of services the exile is looking for. These factors might include belongingss, maintaining up with a societal life, public-service corporation services, and shopping measures. These are the factors that need to be earnestly investigated ( News, 2011 ) before coming to a GCC province, because cost of life is high in these provinces. That is why 27.42 % of exiles say that cost of life is a major concern for them.

In today ‘s clip one issue is going a common happening and that issue is related to unpreparedness of people when they are doing a move to another state, and it besides implies on the state itself for non supplying proper budgeting for life cost in the state. Due this misinformation most of the people assume that they are traveling to a state where costs of life ( annabelkantaria, 2011 ) might non be much different from their place state. In world life in GCC is really expensive because their economic environment and societal construction promote heavy outgos. Therefore it is truly of import that a authorities of the several GCC provinces should do such policies that project their income coevals rate for the indigen and the exile and the outgo rate for the consumers shacking in that state. This will assist in the fiscal planning of those people who are interested to go an exile at that place.

Sometimes due to the difference in economic systems the things that our cheap in exiles ain states may be reasonably expensive in the GCC provinces. This normally happens when the authorities of a GCC province fails to print a consumer monetary value index on major consumer goods. In footings of engineering the GCC provinces are extremely developed and include such services like high velocity cyberspace, high definition Television service, impressive public conveyance system ( BENSON, 2012 ) and other such installations which might non come cheap. These are besides one of the major subscribers in the outgos of an Expat.

By looking at the above Pie chart it becomes clear that how much heavy disbursals are in the GCC provinces. This pie cart depicts the normal consumer outgo for the UAE province. The pie chart clearly shows that the lodging costs form a major part of the entire budget of an Expat in the UAE.

3. Past Policies and Programs to work out the job:

The past policies of the respected GCC part did non concentrate much on the challenges faced by the expat population, because there were no specific sections in the ministry that handled or focused on these types of instances. Some of their past policies used to cover with these sorts of jobs ( KUNJHIBAVA, 2011 ) on a whole degree, and were non differentiated into any specific classs like jobs for exiles or jobs of native population. The lone worth adverting here was that the authorities was looking to set up community centres for its Expat population. The authorities planned to extinguish any societal jobs that were being faced by the exile community using this policy. The policy covering with these community centres would hold been extremely effectual if the undertaking was wholly seen through the terminal. Social imbalances that an exile faced could hold been reduced by big border.

Harmonizing to the recent statistics the societal job faced by the exile community rated as the 3rd most common job. 11.29 % voted these societal jobs as a major hurdle in their colony to these GCC provinces. This undertakings the deduction of this job on La big graduated table. Typically most of the states in the universe have a separate ( NUMBEO, 2013 ) and charted sections in the authorities that concept and invent policies for expat population of their state. Same is non the instance with all the GCC provinces. Although these GCC provinces have an exile that deals with the ailments and suggestions of them, nevertheless the job lies with the process that is used to cover with these ailments. Most of these ailments are non seen excessively properly and are lost in the procedure of follow up.

Sing the information presented above it would look that old policy of the GCC province authorities were non rather successful because no positive application was of all time recorded as a consequence of these activities. With the old policy neglecting to do a base on the issues of exiles ( annabelkantaria, 2011 ) , this policy is normally considered a failure by major economic experts. In visible radiation of this instance it would surely look better that alternate policies should be introduced that can clearly undertake the job faced by the exiles in the GCC provinces. Successful chartering of policies and their practical application would vouch positive response for whole the exile community every bit good as the GCC authorities.

The list of the stakeholders and the nature of each:


The primary stakeholder in this issue is the exile himself. Every job or every struggle that arises due to this issue is straight related to the exile and has direct effects on his immediate milieus. The status of the exile has an reverse relation ( BENSON, 2012 ) with the current exile jobs in the GCC. This statement means that if a job is eliminated so the status of the exile improves. The actions of the exile are the consequence of the effects of this job.


The authorities is besides a primary interest holder in this scenario. Expat jobs are sometimes the consequence of incompetence of the authorities. On the other manus the authorities is besides responsible for supplying solutions to these types of jobs ( KUNJHIBAVA, 2011 ) particularly if it is created by its ain incompetence. The authorities has comparatively more of import than any of the other stakeholders because of its direct engagement in the whole apparatus of this expats issues.


Industry is besides a stakeholder in this expat issue. Expat are normally a beginning of inexpensive manual labour and if the exile influxes lessening due to the jobs faced by these exiles in the GCC province so the companies or the industries lose on a good beginning of manual labour. This can get down a concatenation of events which means that the production of these companies will diminish which will take to instabilities in the economic system.


Health attention is a really of import facet of an economic system, and therefore it is a stakeholder in most of the major facets of the economic system. If wellness attention system becomes wholly authorities funded maintaining ( NEWS, 2012 ) in respects the demands of exiles and their native population so the wellness attention system might really acquire benefit from this. Health attention is normally really expensive in the GCC provinces and most of the people can non afford private medical examinations. An debut of subsidized health care system will intend influx of patients in the infirmaries which will profit the health care system of the peculiar GCC province.

Definition and diagnosing of the job:

An exile is a individual shacking in a state temporarily or for good other than that of individual ‘s upbringing or the place state. The jobs of this subject trade with these exiles, and they are besides considered a beginning of gross and labour for the states that they are shacking in.

Exiles hold a comparative importance in the economic system of their finish states because a big figure of exiles are normally associated with industrial ( NUMBEO, 2013 ) and corporate sector of that state. Exiles are besides beginning of big sum of remittals for their place and parent states. This is how valuable and expat truly is.


The GCC receives a batch of exiles from all parts of the universe due to the figure of employment chances it represents. The job of exiles in GCC provinces is present since the 1970 ‘s when the oil roar happened. GCC provinces were the figure one precedence for many exiles who were looking for a bright hereafter, but a big figure of inflows of these exiles created a serious job for both the province and the exiles.

Political Analysis






















+ = Highly Acceptable

– = Not Acceptable

? = Ill Acceptable

Solution Analysis

Evaluation standards

The policies discussed in this research shall be evaluated on the followers mentioned standards.

Social Circle

Social circle means that how fast an exile can set in the GCC province environment. Does the authorities have any societal undertakings traveling on to better the societal stableness of the exiles?


What is the life costs associated of an exile in the GCC? Is his outgo greater than his income coevals?


Are the employment perspectives adequate to maintain the exile economically sustainable?

Health Care

Is the healthcare installation in the GCC province approachable to the exiles? Are at that place any strings attached to this service?


C4 ( Healthcare )

C3 ( Employment )


( Cost )


( Social Circle )


Expensive intervention



Less socialisation

P1 no policy ( current policy )


Moderate addition

No consequence

High socialisation

P2 ( extinguishing cultural clangs )

Very Effective

No consequence

Less dearly-won

No consequence

P3 ( cut down health care costs )

No consequence

No consequence

Less dearly-won


P4 ( manage belongings costs )

P2, P3

P2, P3

P3, P4

P2, P1


Major findings:

Harmonizing to the end policy matrix performed above P1 and P4 possess the most negative features out of the four policies. They are expensive, less low-cost ; do n’t possess much alteration and uneffective ( annabelkantaria, 2011 ) . These features eliminate these two policies from the choice.

Policies 2 and 3 remain in consideration due to the positive deductions they possess. Now when they are compared with each other policy 2 comes out to be the best because it is practical, cost effectual, possesses societal justness and provides healthcare inducements. These properties when combined makes the policy figure 2 stands out more.

Therefore P2 is the best alternate policy because it has the best properties in its rating standards.