West Asia conflict clouds cast shadow on India-Gulf labour corridor

Rising tensions in West Asia are slowing recruitment of Indian workers to Gulf countries, potentially delaying over 300,000 overseas job placements in the coming months

The conflict in West Asia is beginning to ripple through India’s overseas labour market, halting recruitment flows to the Gulf and potentially disrupting hundreds of thousands of migration plans. 

With attacks reported across Iran and parts of the Gulf region, uncertainty has slowed the steady pipeline of Indian workers heading to the Gulf Cooperation Council (GCC) countries. Recruiters say the pause could delay more than 300,000 job placements if hiring remains stalled for several months, but the impact is likely to be temporary. 

India has roughly 9 million citizens living and working across the GCC, many employed in sectors such as construction, oil and gas, hospitality and healthcare. While governments in the region have moved to stabilise the situation, the ongoing tensions have forced recruiters and employers to temporarily slow hiring. 

“The current West Asia tensions have caused an immediate halt in movement and recruitment, leading to a significant slowdown for Indian workers,” says Amit Saxena, director of Mumbai-based overseas recruitment agency Ambe International. According to him, between 100,000 and 150,000 Indians migrate to the Gulf every month. “If movement remains stalled for three to four months, more than 300,000 recruitments from India could be affected.” 

The GCC economies have traditionally offered large-scale employment opportunities across infrastructure, energy, and service sectors. In recent years, demand has also expanded to white-collar roles in finance, compliance, artificial intelligence, and e-commerce. Those from the industry say these roles may take longer to recover if the crisis drags on. Infrastructure and energy projects typically resume quickly due to tight timelines, but white-collar hiring often depends on longer-term business confidence. 

The migration process itself takes about three months from recruitment to deployment. “Leading the migration list are Kerala, Tamil Nadu, Andhra Pradesh, Telangana, and Uttar Pradesh, with increasing participation from Gujarat and Maharashtra in skilled roles,” says Pallavi Chawla, founder and chief executive officer of Alliance Recruitment Agency. 

Large-scale industrial projects could also feel the impact of a hiring pause. “Annually, over 10,000 workers go to major refinery projects across the region, particularly in Qatar and the United Arab Emirates (UAE),” says Saxena, adding that a stoppage in hiring could slow progress on significant contracts. However, recruiters say most migrants are not abandoning Gulf opportunities entirely. Instead, they are recalibrating their plans and favouring relatively stable destinations within the region. 

“In such situations, countries like the UAE, Qatar, and Saudi Arabia continue to attract talent because of their relative stability and strong economic activity,” says Dubai-based career consultant Manas Bichoo. 

Recruiters add that hiring markets rarely shift overnight. “Some companies may take a short wait-and-watch approach, but overall demand for talent remains stable,” Chawla says. 

Relief measures 

Governments across the region have also introduced temporary relief measures for workers already present

 in the Gulf. Several countries have eased visa regulations to prevent workers from falling out of legal status during travel disruptions. 

The UAE has waived overstay fines for both tourists and residents unable to leave after February 28. Kuwait has launched a fully digital system allowing a one-month visa extension, with the possibility of further extensions depending on the situation. Qatar has introduced similar temporary measures. 

“These steps help retain workers and reduce forced migration,” says Saxena. 

Recruitment agencies say they remain in close contact with workers already deployed in the region. “We are in touch with many of our candidates. Most of them are continuing their jobs normally. The situation has not created a panic among the workforce,” Chawla says. 

Despite the current disruption, experts say India’s overseas employment market is diversified enough to absorb temporary shocks. 

Opportunities are expanding across Europe, East Asia, and parts of Southeast Asia, Chawla points out. “Promoting alternatives such as Germany, Japan, Russia, and Southeast Asian markets helps mitigate risks from regional disruptions while maintaining overseas employment,” Saxena adds. 

Gulf’s enduring pull 

The Gulf has historically remained resilient, despite periodic geopolitical tensions. Even during regional conflicts, recruitment cycles have tended to recover once stability returns. 

“Demand in sectors such as oil and gas ensures long-term employment opportunities,” Saxena says, adding that hiring in the region typically follows cyclical patterns. 

According to Bichoo, the UAE in particular continues to stand out as one of the region’s most diversified and stable economies. Companies are still actively hiring across multiple sectors, he claims. 

Over the years, Gulf governments have also reformed labour regulations to attract international workers, particularly from India. The UAE updated its Federal Decree Law in 2024 to align with global labour standards, introducing measures such as pay equality, the abolition of unlimited contracts, and clearer work classifications. 

Many of these reforms followed the migration disruptions during the Covid-19 pandemic. In 2021, Qatar introduced a non-discriminatory minimum wage applicable to all workers regardless of nationality or sector — the first such move in the region. Bahrain and Oman followed suit, introducing labour reforms in 2024 and 2023, respectively. 

“There is no indication that global hiring hubs will shift away from the GCC countries,” says Chawla. “International recruitment patterns do not change that quickly.”