Filipino Labor in the Middle East - Historical Drivers and Modern Issues
By Zach Willis
Filipino migrant workers are an integral if seldom discussed segment of the labor force in Middle Eastern countries. While there are no exact figures on the number of Overseas Filipino Workers (OFWs) present in the Middle East and North Africa (MENA) region, recent estimates range between 2 to 3 million with roughly 90% of this population split between the gulf states of Saudi Arabia, Qatar, Kuwait, and the UAE. This article will give a brief explanation of the history of OFWs, their importance to the Philippines itself, the struggles they have faced, and what is being done to assist them.
In the early 1970s gulf coast countries were beginning to recognize the potential power of their oil reserves. Tapping into these reserves could give them not only immense wealth but also the chance to greatly increase their sway on the world stage. This power was especially paramount given that many of these countries had only recently merged from European colonialism and felt a strong need to assert themselves as independent actors on the world stage. However, largely speaking, the gulf countries lacked the manpower to properly exploit their oil resources with domestic labor sources and instead looked abroad for help in staffing their oil sectors.
This period saw a remarkable change in the internal dynamics of the MENA region. Egypt had long been the nexus of the Arab world. While Nasser held power, he was undeniably the greatest arbiter of influence in the region. Egypt also boasted a larger population and economy than its immediate neighbors. Yet Egypt lacked the oil resources of other states, and as drilling increased in the gulf and wealth accrued, many Egyptians relocated to states with better employment prospects. They immigrated to Saudi Arabia, the UAE, and most prevalently, Iraq. This migration heralded a change in power dynamics in the Middle East. Egypt was no longer the unquestioned nexus of the Arab world, and the stage was set for new wielders of influence to take the stage. This shift is well remembered in literature on the region, however, lost in this narrative is another story of labor migration that has greatly impacted history and continues to affect the world of diplomacy today.
In 1973 the Philippines was struggling financially. Economic expansion could not keep pace with population growth. The nation was also hobbled by balance of payments debts, importing far more than it exported, draining foreign currency reserves and negatively impacting the Philippine peso. In other words, the Philippines had too many people, not enough jobs, and too few exports (sources of foreign currency). In 1974, the Marcos government passed the Labor Code of the Philippines which, “Established the framework for what became the government's overseas employment program” the framework streamlined the emigration process and eased the path towards labor-based relocation. These short-term migrant laborers would come to be known as OFWs.
In response to government support for migration, Filipinos flocked to where high paying, relatively low skill jobs were abundant. Simultaneously, gulf countries were searching for a labor force to help expand drilling. Supply met demand and in the flow of Filipino workers to Saudi Arabia, Kuwait, and the UAE. This first generation introduced the term “Katas ng Saudi” [fruit of Saudi] to the Philippine vernacular to refer to the increase in quality of life they experienced as a result of jobs in Saudi Arabia.
From the initial, relatively small crop of roughly 12,000 OFWs that came to the Middle East in 1975, the population expanded and by the mid-80s there were over 380,000 OFWs in the region . There were two main factors behind this expansion. First, as pathways became more established and knowledge of the opportunities in the gulf spread, Filipinos were increasingly enticed to seek employment in the region. Second, the nature of work common for OFWs expanded from mostly heavy construction and drilling to work in the service industry. Along with this change came a dynamic shift in terms of OFW demographics.
Previously, OFWs seeking employment to the Middle East had been almost entirely male as there was minimal female employment in the oil sector. With expansion into the service sector female employment skyrocketed.
With the expansion of OFW labor came a related increase in remittances. These are the funds sent by Filipino workers in foreign countries back to the Philippines. While these funds had always been important for families of workers, as the number of OFWs increased remittances began to have more impact on the Philippines’ general economy, it became imperative to protect them as a source of funding.
Simultaneously, the entry of women into the ranks of OFWs prompted increased domestic pressure to ensure the safety of migrant workers. Domestic Filipinos feared that by sending their daughters abroad they would expose them to potentially abuse or violence. As the OFW population has increased, these concerns have remained salient and become a major driver of the Philippines’ foreign policy, particularly in the Middle East. This domestic pressure, along with the need to protect remittances has persuaded the Philippines to conclude multiple agreements with Middle Eastern governments concerning protections for workers’ rights.
For example, over the last 8 years the Philippines has engaged in multiple rounds of talks with the UAE over worker protections. After numerous “cases of negligence” in 2014, the Philippines banned the entry of OFWs into the UAE for the purpose of domestic work. This policy proved ineffective though as Filipinos still traveled to the UAE on tourist visas then transitioned to work permits once in the country. As a first step to tackling the problem of unsanctioned recruitment and unregulated work, in 2017 the Philippines and the UAE agreed on an official memorandum of understanding “In the field of manpower”. Among many other provisions, the MOU states that “Recruitment of manpower in the Philippines and its workers’ entry into the UAE will be regulated in accordance with relevant laws, rules and procedure of the parties” and that all OFWs must work under contracts “authenticated by the UAE ministry of labor.”
While these provisions protect OFWs directly, it is also a priority of the Philippines’ government to protect the flow of remittances from OFWs back to the Philippines. This is observable in Article 8 of the MOU which states, “Workers will have the right to remit all their savings to their country of origin or elsewhere in accordance with the financial regulations of the UAE.”
However, even with these enhanced protections, working conditions under the MOU were still deemed insufficient to protect domestic laborers and the ban remained in place. Despite the ban, employment of Philippine domestic workers in the UAE continued, reaching over 200,000 employed just in household service alone 200,000 employed just in household service alone. Due to the continued failure to ban domestic work and the minimal protections under the 2017 MOU, the government of the Philippines sought to reach a new, more comprehensive labor agreement.
Concluded in March of 2021, the new agreement stipulates that household workers will be guaranteed eight hours of rest, a paid day off every week, and a month’s paid annual leave. Additionally, employers cannot take the worker's passport or ID and workers must be given access to a mobile phone. Employers will also undergo verification by the government of the Philippines before hiring OFWs as domestic workers and any extensions of contract or change of employer must go through the same verification process.
This agreement is indicative of the increased efforts of the Philippines to protect OFWs, particularly those engaged in household work in the Middle East.
In the same month as the agreement with the UAE, the Philippines came to a similar deal with Kuwait which had also been a banned destination for household service workers. The relative shortage of workers created by the ban had pushed the employment of maids and other service workers onto the black market, where Filipino workers experienced inhumane conditions and Kuwaitis were forced to pay exorbitant prices to middle men to obtain workers. Under the new agreement the ban was lifted, and employment could reemerge into the formal economy.
Lastly, on June 21st, the Philippines put out a press release on the benefits of Saudi Arabia’s Labor Reform Initiative (LRI), with President Rodrigo Duterte touting it as a significant step towards addressing issues with the existing sponsorship system currently in place.
Filipinos make up a vast labor force in many countries in the MENA region, with a particular emphasis in the gulf coast countries. The funds OFWs remit back to the Philippines also make essential contributions not only on family level but also macroeconomic areas such as balancing of payments and currency stabilization. However, due to the nature of much of the work OFWs undertake, they have often experienced exploitation and inhumane working conditions. While this is beginning to change on an official level with new agreements being put in place between the Philippines and numerous middle eastern countries, it is yet to be seen whether these agreements will protect workers in practice.