Shortage of Indian workers in UAE

Nearly 43 per cent of all foreign workers in the UAE are Indians and a large number of them work as contract labourers in the construction industry.     

In the last few years, Asian countries, and in particular India, have seen rapid economic growth, improved career opportunities and higher wages.     

According to Hewitt Associates, salaries in India in 2007 were expected to grow at 14 per cent, with a similar increase in 2006. The UAE, in comparison, saw a salary increase of 10.7 per cent in 2007, a marginal rise from 10.3 per cent in 2006.     

Based on the estimates of MEED magazine, in 2005 an Indian worker earning Rs 3,000-5,000 in the Gulf could earn twice as much as he could at home by signing up to a three year contract in the GCC.     

In 2008, the same worker could earn Rs10,000 a month in India, while wages in the GCC have been fixed at the original contracted amount, thus reducing the incentive to work overseas.     

Essentially, the wage gap between India and the Gulf is closing as the declining value of the UAE Dirham against the Indian Rupee is compounding the issue.     

Regional and international competition is also making it increasingly difficult for construction companies in the region to find both skilled and unskilled workers, said the report.     

Since mid 1970's, a large number of foreign workers have been migrating to the Gulf for substantially higher salaries than they could expect in their home countries.     

The UAE is home to 3.1 million foreign workers, of which around 1.5 million are Indians, accounting for more than 90 per cent of the private sector workforce.