Iran war puts South Asia's Gulf remittances at risk

As the rich Arab states of the Persian Gulf are targeted by Iranian drones and missiles, protracted economic disruption brought on by the Iran war could threaten the hundreds of billions of dollars in remittances sent home every year by millions of South Asian foreign workers in the region. Most of them come from India, Pakistan and Bangladesh, and for decades they have helped drive the Gulf nations' economic boom, taking jobs in construction, hospitality, tourism and health care.

Their remittances have not only provided families at home with essential income, but also become a major source of foreign currency inflows for India, Pakistan and Bangladesh, acting like a financial cushion for their economies, and helping cover trade deficits.

With energy infrastructure under attack and oil and gas transit blocked in the Strait of Hormuz, the combination of prolonged high energy prices and a drop in remittances could pose a double threat for these developing economies.

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