India: Gulf crisis causes concern in Kerala state

By NNN-PTI,

Thiruvananthapuram, India : The Dubai financial crisis has fuelled fears among families of over two million migrants from Kerala state working in the Gulf, with worries of massive job losses and its fallout on the state’s economy, heavily dependent on remittances.


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The crisis erupted last week when the Emirate said it would delay payment on debt issued by Dubai World, a leading investment firm, sending waves of panic across global markets.

While experts have forecast job cuts and a steep fall in remittances if the present trend continued, another view is that Dubai is resilient enough to overcome the current bad patch.

State Finance Minister T M Thomas Isaac says he is very “anxious” about the possible slowdown in construction activity in the Gulf, following the crisis which would badly affect migrant workers from Kerala state.

“A majority of workers in the construction sector in the Gulf are from Kerala state”. he said.

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