International Migration and Development in the Arab Region: Financial and Social Transfers François Farah Chief, Social Development Division ESCWA Economic Commission for Africa (ECA-NA) Expert Group Meeting on International Migration and Development in North Africa Rabat, March 2007

2 Levels and trends of International Migration in the Arab Region Arab countries have experienced a significant rise in international migration in recent years. The region is characterized by important south to south migration flows too. RegionMigrants (millions) 1990 Migrants (millions) 2005 Increment (millions) Increment (%) World More developed Less developed Arab Region Maghreb Mashreq GCC Source: UN Population Division, Paper submitted to the EGM on International Migration and development in the Arab Region, Beirut May 2006 (UN//POP/EGM/2006)

3 Trends in international migrant stock Source: UN Population Division, Trends in total migrant stock, 2005

Migration flows in the Arab region are mainly dominated by the large volume of labour migration to the GCC The GCC countries are major receivers of migration: Six of every 10 migrants in the Arab region live in the Member states of the GCC Saudi Arabia, United Arab Emirates, and Jordan are among the 20 countries in the World with the largest number of migrants All Arab countries had become sending and receiving countries to different degrees Due to geographical proximity and restrictive work policies, Transit migration (North Africa to Europe) and Irregular migration (GCC) are on the rise Undocumented migration often occurs over short distances, while skilled migration increases with the increase in distance, impediments and cost Since 1980, the proportion of migrant workers in the GCC countries originating is Asia increased while those originating in other Arab countries has decreased Migration stock and flows in the Arab region

5 According to the place of birth, there were about 8.3 million Arab emigrant worldwide in The main countries of origin were Morocco, Egypt and Algeria Source: UN Population Division, Paper submitted to the EGM on International Migration and development in the Arab Region, Beirut May 2006 (UN//POP/EGM/2006)

6 Where Do Arabs Migrate? Europe is the most favorable destination of first-generation Arab emigrants, hosting 59% of emigrants worldwide. The oil-rich countries of the GCC rank second followed by USA. Data on foreign-born population in OECD countries show that in 2000, 4.9 million Arab lived in OECD states, constituting 11.8% of the total migrants in these states, predominantly France, Spain, Netherlands, Denmark, Belgium and Italy. Skilled migration is underpinned by large student flows. France attracts 50% of the Arab students The largest number of emigrants to Europe originate in Maghreb countries while migrants from Mashreq are mainly destined for oil- rich countries

7 Emigrants from the Mediterranean Arab countries according to most recent data of destination countries Source: Census data on foreign residents by country of nationality, most recent data (Philippe Fargues, paper submitted to the EGM on international migration and development, Beirut May 2006; UN/POP/EGM/9)

8 Emigrants from Arab Countries by major countries of residence, 2000: Absolute numbers and as percentage of the total foreign-born population Source: OECD database on foreign-born and expatriates (J.C.Dumont, paper submitted to the EGM on international migration and development, Beirut May 2006 – UN/POP/EGM/2006/11)

9 Characteristics of Arab Immigrants Emigration from Gulf States to OECD countries is relatively young due to large inflows of student migration (50% are <25years) With the exception of Morocco, Emigration from North African countries is much older and dates back to the 60s and 70s Emigration from Lebanon and Jordan is more balanced in terms of age structure Source: OECD database on foreign-born and expatriates (J.C.Dumont, paper submitted to the EGM on international migration and development, Beirut May 2006 – UN/POP/EGM/2006/11)

10 The gender dimension of international migration Current estimates show that only 36% of international migrants in the region are females. Source: UN Population Division, Trends in Total Migrant Stock, the 2005 revision

11 Today, Women account for 34.5 % of the foreign workforce in Oman, 19 and 22% in Bahrain and Kuwait and less that 15% in Qatar and Saudi Arabia. Domestic work is the most important occupation among women migrants in the GCC countries, Jordan and Lebanon. Indonesia, Philippines and Sri Lanka are the major source of female migrant outflows to each of SA, UAE, Kuwait, Jordan and Lebanon. The demand for female migrant workers is less likely to respond to policies of “nationalization” of the labour force in the future, as demand for domestic workers and care givers will increase due to the increase of labour force participation among national women. Despite the increase in educational attainment of Arab women and the importance of family reunification, as well as the growing demand for women-focussed labour such as health care, 45% of Arab emigrants are women compared to 47% worldwide.

Working Population Children Youth Population Elderly Demographic transition, employment and international migration The Arab region is undergoing a major demographic change. The decline in total fertility and infant mortality coupled with the increase in longevity, caused an imbalance in the population age structure and boosted the population in the working age group (15–64) Source: Batool Shakoori, Paper submitted to the International Symposium on International Migration. Turin June 2006

13 Arab countries have the highest unemployment rate in the world. Unemployment rate ranges between 13.2% and 20%.Youth unemployment constitutes 53% of total unemployment. As a result of the demographic changes, labour markets in the region have to absorb the gains in the first time job seekers on top of those already unemployed and seeking work Unless effective policies are undertaken to make employment rates grow faster than the working-age population, open unemployment will further escalate causing more people in the working age group to migrate in search for employment opportunities and better income The major challenges Arab countries are expected to face is the political and social pressures resulting from the unemployment rate on one hand, and the unmet growing demand by people to emigrate (demographic pressure of migration) Demographic transition, employment and international migration Source: Batool Shakoori, Ibid.

14 Labour migration in the GCC States Migration flows in the Arab region are mainly dominated by the large volume of expatriate labour to the GCC countries In 2005, the total migrants in GCC States were estimated at 12.8 million. In 1975, Intra Arab migration represented 74% of the total migration in the region. It declined to 28% in 2005, partly due to changes in political alignments after the Gulf war. Other major sources of migrants for the GCC and Mashreq include the Philippines, Sri Lanka, Bangladesh, India, Indonesia and Pakistan The use of the concept migrant workers for contractual expatriate workers in GCC countries continues to be contentious and problematic. The “ temporary ” concept does not imply the actual demand and supply of foreign labour in these countries

15 Percentage of nationals and expatriates in the population and labor force of GCC countries, 2000 PopulationLabour force Country Total Population (000s) % expatriates Total Population (000s) % expatriates Bahrain a 61.9 Kuwait (2004) 2, , b Oman 2, Qatar a 81.6 S. Arabia 20, , UAE 2, , All GCC countries 29, , Source: Nasra Shah, Paper submitted to the EGM on International Migration and development in the Arab Region, Beirut May 2006 (UN//POP/EGM/2006/3)

16 Challenges imposed by international migration in the GCC states Imbalance of the population structure: large proportion of foreigners which sometimes exceeds national population (UAE 71%, Kuwait 62%) Rising unemployment of non-nationals Abuse of the practice of “ sponsoring ” Indirect negative impact of remittances of foreign workers on investment and payment balance in the GCC states

17 Impact of international migration on countries of origin and destination A.Macro Level: 1. Impact on sending countries: Diasporas and Return Migration Improving the links between migrants abroad and their communities of origin could have positive impact for the transfer of knowledge, ideas and funds between countries of origin and destination. Return migration programs have not been successful, despite the support provided by some receiving and sending countries. Return is encouraged when conditions in home countries improved, including the role of law, democratization, political stability, and a responsive investment climate

18 Number of emigrants in each country of destination Number of emigrants by village or town of origin Total number of emigrants by year. Economic, social, political, cultural, emigrants activity abroad Actual data on remittances per year Actual data of capital transfers per year The type of economic activity and investment of returnees The contribution of emigrants to public infrastructure, housing, education, health, social welfare, transfer of knowledge, political life Information about Diaspora is challenged by inadequate information on:

19 2. Impact on sending countries: Remittances Migrant remittances have become the largest, fast growing and most stable capital flow to the region. Remittances in Arab region are higher than Foreign Direct Investment (FDI) and ahead of Overseas Development Assistance (ODA) Remittances are significant contributors to the GDP in many countries of the region and believed to have made major contributions to poverty reduction, health improvement and educational attainment of many households Among the countries receiving large remittances from their migrant workers are Morocco (US$ 4.3 billion), Egypt (US$ 2.9 billion), Lebanon (US$ 2.3 billion), and Jordan (US$ 2.2. billion) in Jordanian expatriate remittances, which rose from 19.5 percent of GDP in 1998 to 22.6 percent of GDP in 2003, are the highest in the Arab region, followed by Yemen, 16.1 percent of the country’s GDP, Lebanon 13.8 percent, and Morocco 9.7 percent. Remittances may trigger additional migration flows Remittances can have a negative impact including: inflation, effect on balance of payments and increase in real estates prices

20 Saudi Arabia is the most important source of workers ’ remittances, accounting for 15% of the world total in 2004 Source: UN Population Division, Paper submitted to the EGM on International Migration and development in the Arab Region, Beirut May 2006 (UN//POP/EGM/2006)

21 Lebanese workers remittances and their contribution to GDP at current prices Remittance as a % of GDPGDP in US $Remittances en US $Year % % % % % % % % % % % Source: Boutros Labaki, Paper submitted to the EGM on International Migration and development in the Arab Region, Beirut May 2006 (E/ESCWA/SDD/2006/W.G.1/7)

22 Impact of international migration on countries of origin and destination (contd) 3. Impact on sending countries: Brain drain The question of brain drain arise when people who migrate are more educated than the native population. On the other hand, when both native population and migrants are highly educated then the economic impact of migration is not likely to be negative on sending countries. Large expatriates states, poor states and politically unstable countries suffer most from brain drain in the Middle East and North Africa. In contrast, brain drain is not problematic in GCC countries. The majority of students return to their home countries after studying abroad, due to the high demand for highly educated nationals in the labor market. Migrants who contribute to brain drain are mainly educated adults (>22 years) who migrate to USA, Canada and Australia after completing their college degrees in their home towns (87% Algerians, 68% Moroccans and 73% Egyptians). The pattern is different in Europe, particularly France where 60% of maghrebian migrants arrived before 18 which indicate they are descendents of older migrant communities and thus do not contribute to brain drain in their original countries

23 Brain Drain: Distribution of highly educated immigrants to OECD by country of origin Source: Caglar Ozden, Paper submitted to the EGM on international migration and development, Beirut May 2006 – UN/POP/EGM/2006/10)

24 Impact of international migration on countries of origin and destination (contd) B. Impact on receiving countries Increasing productivity Bridging knowledge and values gaps Creating economic and social tension due to increased unemployment among non-nationals C. Micro Level: Impact on individuals and households Decompressing unemployment and attracting foreign currency in sending countries (safety valve) Acquiring new skills Reduction of poverty and improving situation of families Improving health status and educational attainment buying real estate, getting married, paying debts, including costs of emigration, saving, investing in income generating activities Changing in life styles and practices

25 Skilled Migration in the Arab Region There exists large migration flows of skilled workers within and to outside the region however it is generally lower than in some other developing regions. Around one million highly skilled Arab emigrants live in OECD area. France receives 40.2% of highly skilled Arab migrants while USA and Canada receive 23% and 10.2%, respectively Migration from Maghreb countries is relatively low-skilled. 15% to 18% of Maghrebian emigrants living in the OECD countries had tertiary education, while the proportion of highly educated emigrants from the Mashreq ranged between 21% and 51% of total emigrants (highest originate in Egypt) Highly skilled migration from the region is underpinned by large student flows that do not return to the sending countries. Around 135,000 students or 7% of foreign-born students in OECD states originate in the Arab region. Morocco account for 40% of these students Integration of low-skilled migrants in destination countries remains difficult. One of the main factors for successful integration in the host countries' labour market is to be educated in the country of destination rather than home countries

26 Distribution of Arab emigrants to OECD countries by educational level, 2000 Source: OECD database on foreign-born and expatriates (J.C.Dumont, paper submitted to the EGM on international migration and development, Beirut May 2006 – UN/POP/EGM/2006/11)

27 Government policies on international migration Most if not all GCC countries want to lower immigration and dependency on foreign labour. The reason for these restricted migration policies are the rising unemployment of nationals and the large proportion of foreigners in the total population There are marked deficiencies in policies, programs and institutions to help settle and integrate migrants in the host countries in the region. The Maghreb countries have a well defined policy that encourages emigration in order to manage unemployment levels and acquire hard currency

28 Immigration Policies in the Arab Region

29 Conclusion  Evidence-based research and producing reliable and comprehensive data on international migration is imperative  The demographic transition in the region is leading to a rise in the economically active population. Employment and appropriate policy-responses are and will therefore be major concerns for many countries in the region.  There is a need to develop international migration policies in both sending and receiving countries and integrate these policies with the overall social and economic goals taking into account the needs of the labour market, the outputs of the education system and the rights of the migrants to be integrated in the host countries and to return to their home countries  Labour migration policies in the Arab region are in need of reform in the light of rising unemployment among nationals, demand and supply of skills, demand for the respect of human rights of migrants, globalization, and the demographic transition that the region is undergoing.  Improving the overall investment environment and increasing access to formal sector transfer services will enhance the development aspects of remittances  Investments by migrants in their home countries should be promoted by building bridges between migrant communities and countries of origin. Remittances are not only financial, but also include values, knowledge and ideas.