Gulf conflict slashes new job approvals for Nepali workers, leaving many on unpaid leave
New labour approvals for Nepali workers in the Gulf have dropped by more than half since the Iran war began, leaving many migrants on unpaid leave and uncertain about their visas.
The Iran war has triggered a sharp contraction in Gulf labour demand for Nepalis, with new approvals dropping 52.12% to 109,249 compared with the same period last year. Migrants such as Arun Rai, a chef sent home from a five-star Abu Dhabi hotel, are left on unpaid leave and face visa expiry, while similar cutbacks are reported in the UAE (-59.05%), Saudi Arabia (-57.02%) and other Gulf states. The downturn jeopardises remittance inflows that support Nepal’s economy, even though current remittance levels remain high.
Domestic job creation is insufficient to absorb the growing pool of unemployed youths, prompting the government to draft a ten-year employment programme. Experts warn that prolonged conflict could further erode Gulf employment and deepen economic and social tensions in Nepal.
Why it matters
The slump in Gulf jobs reduces income for Nepali families and strains Nepal's already tight domestic labour market.
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