Labor market globalization threatens Gulf economies
A recent Emirates banking study has warned that the Arabian Gulf states’ efforts to nationalize the expatriate workers may collapse. According to an Al-Hayat newspaper report, the reasoning offered for this bleak outlook was that these states are implementing the labor standards dictated by the developed countries in the World Trade Organization (WTO).
The Dubai National Bank has reported that the WTO will demand that Gulf States grant equal employment opportunities and compensations to expatriate workers. This will prevent the Gulf governments from executing labor globalization policies based on the specifications and standards of the WTO. The Bank added that the globalization of local labor markets based on the WTO principles requires excessive spending, which is not affordable for the Gulf economies. ¯ (Albawaba-MEBG)