Impact of Iran Conflict: Job Losses Begin Among Nepali Workers in Gulf Countries, Which Sectors Are Affected?
Image source, Reuters
As the conflict in the Gulf countries involving Iran intensifies, Nepali workers employed there are starting to feel the impact.
Particularly, Nepali workers in the energy sector have begun to experience effects of the war, according to a Nepali businessman based in Qatar.
However, officials from Nepali missions in the Gulf countries have reported no significant job losses so far.
The Gulf countries affected by the current conflict employ a large number of Nepali workers across skilled, semi-skilled, and unskilled categories.
Following attacks by the United States and Israel, Iran has targeted Israeli cities and US military installations in various Gulf countries.
Reports indicate that Iran has attacked buildings and facilities belonging to US military forces in countries including the UAE, Saudi Arabia, and Qatar.
Leaving Old Jobs, Losing New Opportunities
Pushpakumar (name changed), a 27-year-old from Saptari, had been working as a chef in a UAE restaurant for less than a month.
He had received better salary and benefits compared to his previous job, but has recently lost this new employment due to the ongoing conflict.
“I left my old job for a better opportunity. But because the war has immediately impacted the tourism and hospitality sectors, the company has not continued my employment,” he said over the phone.
“The probation period was six months, after which I was to receive salary and a ticket back home, but I have received nothing,” Pushpakumar added.
Two other Nepali workers at the same restaurant have also lost their jobs, according to Pushpakumar.
“Around a hundred workers have lost their jobs where I was working. The company has paused recruitment until the situation normalizes,” he noted.
One of Pushpakumar’s Indian colleagues returned home on Tuesday, while he remains hopeful of resuming work once the conflict ends.
“I’m currently managing household expenses with last month’s salary. I tell everyone that the situation is normal. We’ll see what happens next,” he said.
Relief Measures for Existing Workers
According to Kuber Lawar from Nepal working in the UAE, hospitality companies have started offering options to work on minimum wages.
“Due to a slowdown in hospitality and retail sectors, workers have been affected. Some Nepali workers have reported reduced working hours and being placed on unpaid leave,” he explained.
However, companies in the UAE are trying their best to accommodate existing workers, Lawar stated.
“They are not letting go of old workers; even with half salary, they are retained because they may be needed in the future,” he added.
Lawar also mentioned that the UAE government is covering the expenses of stranded tourists affected by the conflict.
Ramesh Shrestha from Nepal, working in outsourcing and tourism in UAE, noted that the Gulf conflict has impacted the service sector.
“I am also involved in the travel business which is facing difficulties, including delays in visa issuance,” he said.
According to him, hotel and restaurant workers have started losing jobs.
“Some have been asked to take unpaid leave or return home,” he added.
Further Clarity Expected Soon
Ramesh Bhatt, who works at Saurabh Project and Services in Qatar, states the company provides services in plumbing, scaffolding, and hospitality sectors.
Some energy sector companies in Qatar have placed workers on unpaid leave but are providing food and accommodations.
“Out of approximately 250 workers, 90 have been idle without work for three weeks. We are arranging food and housing for them,” Bhatt shared.
“We work in scaffolding and collaborate with French and Indian companies, subcontracting work to laborers,” he explained.
Bhatt noted that the situation will become clearer once factories reopen after the Eid holiday on Tuesday.
Image source, Getty Images
Limited Official Information Available
Officials from the Ministry of Foreign Affairs have stated they have not received formal reports of job losses among Nepali workers due to the conflict.
“According to information from our missions, the number of Nepali workers losing jobs due to the war is minimal,” said Foreign Ministry spokesperson Lok Bahadur Paudel Kshetri.
Some officials at Nepali missions in the Gulf have heard reports but have not received formal confirmation.
“We have asked, but no Nepali has formally reported losing employment,” stated one labor cooperative official at a mission.
Nonetheless, with the ongoing conflict, many Nepali workers in the Gulf face the risk of job losses.
There are reportedly more than 600,000 Nepali workers in the UAE alone, a number confirmed by Nepali associations.
Gulf countries remain attractive destinations for skilled, semi-skilled, and unskilled workers from Nepal.
This report is also available in video format.