Qatar crisis may curtail South Asian migrant labour

Subject

The Qatar crisis has an impact on South Asian migrant labour

Significance

On June 5, Saudi Arabia, the United Arab Emirates (UAE), Bahrain and Egypt cut diplomatic relations with Qatar and imposed a blockade, claiming that Qatar supports terrorism and interferes in the internal affairs of its neighbours. On June 23, Qatar was presented with a list of 13 demands to be fulfilled for relations to be restored. With Qatar unlikely to be willing or able to meet those demands, the Gulf faces a prolonged stand-off with economic and social ramifications for Qatar’s South Asian labour force.

Impacts

• The future of the Gulf Cooperation Council (GCC) is in jeopardy.
• Heightened regional tensions are likely, with military confrontations between Saudi Arabia and Iran possible.
• Qatar may increase exports of liquefied natural gas (LNG) to South Asian countries.