Indians in The United Arab Emirates - Economic Contribution

Economic Contribution

Foreigners constitute 99% of the UAE's labour force, of which Indians are a sizable majority. In addition to employment-based migrants from India, many Indian entrepreneurs in the UAE have established successful national franchises such as Landmark Group,Lulu Group, Jashanmal, Jumbo Electronics, Choitram's, the Varkey Group, Alukkas, Lal's and New Medical Center. By 1996, at least 150 Indian companies were operating in the Jebel Ali Free Zone (JAFZ), and even today, more than 50% of work force are Indian only in one of the most successful and role model Free Trade Zone of world. Over 35% of Indian workers in the UAE were engaged in manufacturing, transport and related professions, while 20% were engaged in professional and technical fields. A study conducted in 2004 found the median salary range of Indian migrants to be between Dh 1,001—1,500 (between US$ 270—408) per month (or US$ 3,240—4,896 per year), considerably below the national per capita income of US$ 55,200. Only 9% of those surveyed earned a salary of Dh 5,000 (US$ 1,360) or more per month. However, a 2005 Merrill Lynch report estimated that there were approximately 33,000 Indian millionaires living in the UAE. Indian works typically save most of their earnings through employment benefits on accommodation and transport, and income tax free provisions of the UAE. As a result, a majority of the money is remitted for the maintenance of migrants' households in India. In 2005, an estimated US$ 7 billion was remitted, about half of which was sent through informal hawala channels. About 70% of all remittances from the UAE (or US$ 5 billion) was sent to India, with 60% alone being remitted to Kerala.

A small number of Indian migrants have been involved in criminal activities in the Middle East, including smuggling, trade in narcotics, extortions and other activities. Dubai, in particular, has been associated with the smuggling of gold, precious metals and electronics. Dawood Ibrahim, head of the organised crime syndicate D-Company, is estimated to have smuggled 20 to 30 tons of gold to India annually. On January 19, 2003, Sharad Shetty, one of Dawood Ibrahim's associates who controlled a vast cricket betting empire was shot dead by rival gangmembers while entering the India Club in Oud Metha, Dubai.