UAE; Key Destination For Labor Migration: Huntr Report
Economic growth and development have been critical factors in attracting migrant workers in the UAE
A recent report by Huntr, Transforming Migrant Workforce Management through Data Analytics, highlights the United Arab Emirates' growing prominence as a destination for labor migration. The study, focusing on "Labor Migration in the United Arab Emirates: Challenges and Opportunities," reveals significant trends and impacts of this phenomenon on the UAE's economy and society.
The report indicates that the UAE has become an attractive destination for workers from various countries, with India leading the way. Approximately 3.4 million Indian migrants currently reside in the UAE, forming the largest expatriate community in the country. This is followed by 1.6 million Pakistani workers and 1.2 million Bangladeshi workers, underlining the diverse nature of the UAE's migrant workforce. Salaries in the UAE are often higher than those in migrants' home countries, and the tax-free income makes it a particularly attractive destination for expatriate workers.
Economic growth and development have been critical factors in attracting migrant workers. The UAE's rapid expansion in sectors such as construction, hospitality, healthcare, and retail has created a high demand for both skilled and unskilled labor. Major infrastructure projects, including Expo 2020 and various real estate developments, have been significant drivers of this demand.
The impact of labor migration on the UAE's economy has been substantial. Migrant workers have played a crucial role in the country's infrastructure development, including iconic projects like the Mohammed Bin Rashid (MBR) City, Etihad Rail, and the 2000 MW Solar Photovoltaic IPP at Al Dhafra. Their contribution has also enabled the UAE to diversify its economy beyond oil, fostering growth in tourism, retail, and logistics sectors.
The report also sheds light on recent improvements in migrant worker welfare. Notably, 99% of workers now have medical insurance, reflecting the UAE's commitment to providing essential healthcare access. There has been a 30% decrease in labor violations and a 25% reduction in workplace accidents, indicating enhanced focus on worker rights and safety.
Samuel Joy, CEO, Huntr, said, “UAE continues to attract a diverse international workforce, and it's interesting to see the country’s commitment and positive trajectory in managing the challenges and leveraging the opportunities presented by labor migration, contributing significantly to the country's economic growth and development across various sectors. 99% health insurance coverage for migrant workers combined with a 30% drop in labor violations signals well-thought plans in implementing policies to protect workers' rights and enhance their living conditions”.
Furthermore, the study reveals a 50% increase in training program participation among migrant workers, highlighting growing opportunities for skill development and career advancement. This trend is supported by both employer-sponsored training initiatives and government programs aimed at upskilling the workforce.
