Why financial literacy efforts must be inclusive to benefit Gulf migrant workers

The National

3 days ago

Across the Gulf, low-income migrant workers form the foundation of national economies. They build our cities, keep essential services running and support households and businesses alike. Yet despite their contributions, they remain among the most financially vulnerable communities in the region.
The issue is not simply low wages; it is the lack of access to financial education and services that can help workers build more secure futures.
Many blue-collar workers in the UAE and wider region arrive with little to no exposure to formal financial systems. They often earn modest wages, and a significant portion of that income is sent home to support families abroad. But without basic financial literacy, knowing how to budget, save, avoid scams, or access secure digital tools, even those earnings can fall short of their long-term goals.
Low-income earners who lack financial knowledge are obviously more likely to fall into cycles of debt, be targeted by fraud, or rely on informal financial arrangements that offer little protection. But this is not just an individual risk, it has implications for broader economic resilience and financial stability.
While digital banking and FinTech platforms have accelerated across the region, many migrant workers remain excluded from these services. Why? Because the systems were not built with their realities in mind.
Traditional banking often requires documents that many workers do not have, use interfaces in languages they do not speak, or require processes they may not understand. Cultural and digital literacy barriers further widen the gap, while a lack of trust in formal institutions pushes many to rely on unregulated alternatives.
Even in a country as digitally advanced as the UAE, where smartphone penetration exceeds 99 per cent (according to cyber security company CrowdStrike), the benefits of financial innovation cannot be fully realised without deliberate inclusion.
The solution begins with education. By equipping workers with the knowledge to manage their money, how to budget, set goals, use mobile wallets and spot scams, we unlock tools for economic mobility, not just survival.
Moreover, financial education helps reduce reliance on predatory lending practices and informal saving schemes that can wipe out hard-earned income. It also promotes better long-term planning, including health savings, education for children, and early retirement goals.
At a regional level, this means more resilient households and communities. It also means more stable remittance flows, a key economic driver in countries like India, Pakistan, and the Philippines, which collectively receive billions in remittances from Gulf-based workers annually.
Financial inclusion is more than a policy goal; it is a moral and economic imperative. And financial literacy is its foundation.
We must encourage public-private partnerships that embed financial education into onboarding programmes, workplace benefits, community outreach and mobile apps. Employers, FinTech companies, regulators, and NGOs each have a role to play in this ecosystem.
By taking a human-centred approach to financial design and creating multilingual apps, simple interfaces, and culturally sensitive content, we can ensure that the most underserved members of our workforce are not left behind.
The UAE and other Gulf countries are already investing in digital transformation and financial innovation. To truly lead, these efforts must be inclusive from the ground up.
Because a thriving economy does not just depend on how much people earn, it depends on how well they are empowered to manage it.