9 Million Indians in the Gulf: What the Middle East Conflict Means for Your Business, Property and Career

The Middle East is in active conflict. Since 28 February 2026, the United States and Israel launched military operations targeting Iran. Iran retaliated with hundreds of ballistic missiles and drone strikes, with the UAE among the countries affected. Lebanon has been drawn into active conflict with over 820 killed and nearly one million people displaced. The Strait of Hormuz — through which 20 per cent of global oil flows — has been directly impacted. This is not a distant crisis for India. Nine million Indians live and work in the Gulf Cooperation Council. Their businesses, properties, and careers are at the centre of this emergency.

The Scale of Indian Presence in the Gulf

More than 66 per cent of India's 1.34 crore overseas population lives in GCC countries. The United Arab Emirates alone hosts 3.6 million Indians — the largest Indian diaspora in any single country. Saudi Arabia has 2.65 to 2.74 million Indians. Kuwait has nearly one million. Qatar, Oman, and Bahrain account for another 1.8 million. The GCC hosts nearly half of all Indian out-migrants globally. (Source: Business Standard, RTI reply; Arab News.)

The scale of this exposure is not theoretical. It is the jobs, savings, businesses, and homes of millions of Indian families. A sustained disruption to Gulf employment and business activity directly impacts tens of millions of people in India who depend on remittances from these workers. India received $135 billion in remittances in FY2025. The Gulf contributed approximately $51.4 billion of that — 38 per cent of the total. (Source: RBI Remittances Survey 2025.)

What the Conflict Has Disrupted So Far

The verified disruptions as of mid-March 2026 include: 52,000 or more Indian nationals evacuated from UAE and Gulf countries in the first week following 28 February; Air India, Air India Express, and IndiGo suspending most Gulf routes, with only one Delhi-Dubai round trip operating by 15 March; the Dubai Financial Market real estate index falling 30 per cent in two weeks; shipping costs from India to Europe surging 250 per cent as Houthi attacks on Red Sea shipping resumed; and maritime war-risk insurance premiums jumping from 0.2 per cent to 1 per cent of ship value in 48 hours, with major insurers cancelling Gulf war-risk coverage effective 5 March 2026. Dubai is estimated to be losing $500 million daily in tourism revenue. (Sources: Travel and Tour World; Al Jazeera; Atlas Institute.)

Indian Businesses in the UAE

More than 2,300 Indian companies operate from the Jebel Ali Free Zone alone, employing over 15,000 people. In 2024, 283 new Indian companies registered in Jafza — a 28 per cent year-on-year increase. Indian businesses are the largest community by trade volume in the world's largest free zone. Beyond Jafza, Indian businesses operate across the Dubai International Financial Centre, Dubai Media City, Dubai Internet City, DMCC, and Abu Dhabi's free zones. The collective exposure of Indian business capital in the UAE runs into billions of dollars. (Source: India Trade and Logistics Network.)

These businesses are now facing compounded pressure: physical disruption due to conflict, inability to fulfill contracts, staff unable to return to work, and insurance claims that may take months to resolve. Business owners who have not yet reviewed their contracts for force majeure clauses, notified counterparties of non-performance, or begun FEMA-compliant repatriation planning are already behind.

Indian Property in Dubai: Rs 2.4 Trillion at Stake

35,000 Indians own approximately 69,000 properties in Dubai worth $30 billion — approximately Rs 2.4 trillion. This represents 20 per cent of Dubai's total real estate market. Indian investors account for 22 per cent of all foreign real estate transactions in Dubai. Between 2015 and 2023, Indians invested over AED 120 billion in Dubai real estate. The attraction has been strong: rental yields of 6 to 9 per cent in Dubai compared to 3 to 4 per cent in major Indian cities, combined with the stability of AED-USD peg and absence of capital gains tax in the UAE. (Source: Sunday Guardian Live.)

The Dubai real estate market is now under acute pressure. Transaction volumes have dropped sharply. Indian property owners face decisions about whether to hold, sell, or renegotiate their obligations — and each choice has specific legal, tax, and FEMA implications under Indian law.

Indian Workers: The Human Dimension

The 9 million Indians in the Gulf include millions of workers in construction, hospitality, oil services, retail, transport, and professional services. UAE has 3.41 million Indian workers. Saudi Arabia has 2.59 million. Kuwait has 1.02 million. Qatar and Bahrain together account for another million. Many of these workers — particularly in the ECR (Emigration Check Required) category — are in lower-skilled roles with limited legal awareness of their rights and entitlements. They are among the most vulnerable in any Gulf employment disruption. (Source: Brookings Institution.)

For Indian workers affected by the conflict, the Indian government has established a dedicated MEA control room. Indian embassies and consulates in UAE, Saudi Arabia, Kuwait, Qatar, Bahrain, and Oman are in active contact with Indian nationals. The Pravasi Bharatiya Bima Yojana insurance scheme covers death, disability, and hospitalisation. The e-Migrate portal provides a formal government channel for tracking and supporting migrant workers.

What You Should Do Now

For business owners: Do not wait. Review your contracts now for force majeure clauses and issue formal notices within the contractually prescribed window. Begin FEMA compliance planning before any repatriation is triggered. Understand what the India-UAE Bilateral Investment Treaty (2024) provides in terms of asset protection. If you have an Indian parent company with a UAE subsidiary, your Companies Act and RBI obligations have been triggered.

For property investors: Map your property against the three options available — hold with FEMA compliance, sell and repatriate under FEMA Section 6, or renegotiate mortgage and lease obligations using force majeure provisions. Each option has a different tax treatment under the India-UAE DTAA and different documentation requirements under FEMA.

For workers and employees: Contact the Indian Embassy in your country. Secure copies of your employment contract, salary records, and visa documents. Know your end-of-service gratuity entitlement under Gulf labour law. Understand the Indian government support channels available to you.

In each of these situations, Indian law provides a structured legal framework. The challenge is knowing how to use it — and doing so before limitation periods run or compliance windows close.

How Sansa Legal Can Help

Sansa Legal is an Indian law firm working with Indian nationals, businesses, and investors navigating the legal and strategic consequences of the Middle East crisis. We advise on FEMA compliance and asset repatriation, India-UAE BIT protection, Companies Act obligations for overseas subsidiaries, force majeure and contract frustration, DTAA tax planning, employment rights and re-entry structuring, and reinvestment in India for returning entrepreneurs.

If you are a business owner, property investor, or professional in the Gulf — or if you are an Indian family member of someone in this situation — please reach out. The legal framework is there. What you need is the expertise to use it correctly and at the right time. Contact Sansa Legal at info@sansalegal.com or visit sansalegal.com.