GCC Expats Sent Less Money Home - What's Behind the Decline?
MUSCAT, March 17: According to a recent report from the Gulf Statistical Center (GCC-Stat), total remittances from workers in the Gulf Cooperation Council (GCC) countries reached USD 131.5 billion by the end of 2023. This marked a slight decline of 0.4 percent compared to 2022, following substantial increases in 2021 (9.2 percent) and 2022 (3.8 percent). Despite this minor dip of approximately $500 million, the GCC remains the largest global source of worker remittances, ahead of the United States.
The report also highlighted that the share of remittances in the GCC's gross domestic product (GDP) has been declining in recent years, dropping from 8.1 percent in 2020 to 6 percent in 2022. However, in 2023, this percentage slightly increased to 6.2 percent. Remittances continue to play a critical role as a major source of income for many developing countries, particularly in South Asia and the Philippines, where millions of expatriates contribute across various sectors such as construction, retail, and domestic services.
In addition to remittance data, the report revealed key insights into the labor force across GCC countries. The total labor force in the region reached 31.8 million, comprising 54.2 percent of the total population. Male workers made up 78.7 percent of the labor force, while female workers represented 17.6 percent. The number of working citizens in the GCC stood at 5.6 million, accounting for 23.4 percent of the total labor force, with 60 percent male and 40 percent female.
The report also highlighted a notable increase in the number of working women in the region, with a 600,000 rise since 2011. The government sector remains the largest employer of Gulf workers, with 83.5 percent of employed citizens working in the public sector, compared to just 14.2 percent in the private sector. Most citizens employed in the GCC work in the services sector, especially in public administration roles.
The data further emphasized the ongoing efforts by GCC countries to localize the workforce and address labor market imbalances. Policies such as the GCC Common Market and the Comprehensive Development Strategy aim to increase the contribution of the national workforce to the industrial sector and improve the overall distribution of labor.
Additionally, the report noted that GCC countries are placing a strong emphasis on gender equality and youth employment. Initiatives are being taken to enhance the role of women in development, balance population and workforce structures, and improve national workforce training programs. The region continues to prioritize young workers, promote economic diversification, and invest in the creation of green and environmentally friendly jobs.
These comprehensive workforce policies are designed to ensure long-term sustainability and address the evolving needs of the region's labor market while supporting economic and social development.
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