News NRIs Corner Top Stories

Hard time for Indians in Gulf as economic crisis grips Arab world

Hard time for Indians in Gulf as economic crisis grips Arab world

Chennai: The free fall in crude oil price in the Gulf countries are moving toward a situation of severe economic crisis, thereby Gulf nations are planning to impose tax on expatriate’s income to increase the cost of fuel locally.

Tax-free salary is the main attraction for jobs in these Gulf nations. Therefore, tax on expatriate’s income and because of increased living expenses, most of the Indian expatriates are sending back their families to India.

Electricity and water and other utility charges have also increased, making it tough for Indian expatriates.

The sharply fall in crude prices also have an effect on the economies of the Gulf Cooperation Council (GCC) countries, as per Times of India reports.

According to a Dubai-based KV Shamsudeen of the Pravasi Bandhu Welfare Trust, there were no new projects and several projects across the region were cancelled which also led to job cuts.

A number of companies have either cut down the staff or salaries with no question of granting increments.

“Dubai, Qatar and Kuwait have projects worth $100 billion to complete,” said.

“One of the main reasons families are returning to India is high rents and difficulty in getting admission for their children in schools. Though Dubai has eight new schools it is next to impossible to get a seat and the only alternative is to move back to India,” he said.