OIL PRICES IMPACT JOBS

Companies in the Gulf countries cutting salaries, number of job offers

The plummeting cost of crude oil has not only hit the Gulf economy hard but also lakhs of Indians working in those countries.

Highly qualified engineers and other technically skilled professionals, besides migrant Indians working in semi-skilled jobs, are facing the brunt.

Mr K.V. Shamsudheen, chairman of Pravasi Bandhu Welfare Trust, said that Indians in top positions are either being asked to leave or work for less pay. The majority of the work force comprises people from states like Kerala, Telangana, UP and Bihar, he said.

“Earlier, an Indian engineer employed in a petroleum company in UAE used to draw 15,000 dirhams (1 dirham = `18) per month. But at present they are being asked to work for 8,000 dirhams. Some companies are also asking senior employees to quit so they can recruit fresh candidates with a pay of 6,000 dirhams per month. The price of crude oil was in the range of $145 a few years back but is now around $40. Imagine its impact on Gulf countries like Saudi Arabia, UAE, Qatar etc.

“The costly war in Yemen and rising US interest rates are also not helping the situation with small and medium-sized businesses already closing down because of increasing capital costs.”

Mr Shamsudheen stated that there are nearly 29 lakh Indians in Saudi Arabia, around 26 lakh in UAE, 12 lakh in Kuwait, 10 lakh in Oman, 9.5 lakh in Qatar and another 5 lakh in Bahrain.

Due to this extraordinary situation, Indian expatriates have cut down on their expenditure and are spending very carefully.

The situation was unlikely to improve until 2017, he predicted.