Abu Dhabi – Reuters reported that the United Arab Emirates is under intense economic pressure following the U.S.-Israeli war on Iran. Thousands of expatriates, who form the backbone of the UAE’s non-oil economy, have fled the country.
This has raised concerns about the long-term viability of the UAE as a global financial hub, given its proximity to Iran. Iran attacked Gulf states that provided various logistical support for U.S. military efforts and hosted key American military bases central to the conflict.
Media reports estimate that the UAE’s foreign resident population stands at around 10.4 million out of a total population of about 11.6 million. Foreign nationals make up approximately 88% of the population, with Emirati citizens accounting for just 12%.
Expatriate labor is the driving force behind the workforce in Gulf states, especially in the UAE, where expatriates fill over 95% of jobs in key economic sectors such as the private sector.