Middle East War to Weaken Job Market and Remittances in MENA Region
Jobs, remittances to shrink in region as firms delay hiring due to Middle East war, says report

Image: Khaleej Times
The job market in the Middle East and North Africa (MENA) is expected to weaken significantly by 2026 due to hiring delays linked to the ongoing regional war. A report indicates that this will adversely affect remittances from Gulf Cooperation Council (GCC) countries, with 74% of chief economists predicting weak employment growth.
- 0174% of chief economists foresee weak or very weak employment growth in the MENA region over the next year.
- 02The ongoing Middle East conflict is disrupting trade, tourism, and investment, exacerbating job losses.
- 03The International Labour Organization warns that millions of jobs are at risk, particularly in conflict-affected economies.
- 04Job cuts in GCC countries will negatively impact remittances, crucial for many recipient nations.
- 0588% of chief economists now predict weak growth for MENA, a stark decline from earlier optimism.
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The World Economic Forum's Chief Economists' Outlook report warns that the job market in the Middle East and North Africa (MENA) will face significant challenges by 2026 due to delays in hiring linked to the ongoing regional war. A staggering 74% of chief economists predict weak or very weak employment growth in the coming year, citing disruptions in trade, tourism, and investment. The International Labour Organization has highlighted that instability threatens millions of jobs, especially in conflict-affected areas where supply chains and foreign investment are severely impacted. Despite this, Gulf Cooperation Council (GCC) economies like Saudi Arabia and the UAE show some resilience, with ongoing demand for talent in various sectors. However, the report notes that job cuts in these wealthier nations will still affect remittances, which are vital for many economies reliant on migrant workers. The overall outlook for MENA has notably deteriorated, with 88% of economists expecting weak growth, a significant shift from previous optimism earlier in the year.
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The anticipated decline in job opportunities and remittances will place additional financial pressure on households in recipient countries reliant on these funds.
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