Iran conflict disrupts $124 billion Gulf remittance flows

Migrant workers in the six Gulf Cooperation Council countries sent an estimated $124 billion home in 2024. The funds support families across Asia, the broader Middle East, and Africa. The conflict has disrupted travel, tourism, and exports through the Strait of Hormuz. Import costs have risen and supply chains have faced strain.

Worker accounts and regional data Steve Geoffrey, a Kenyan national working in Qatar's hospitality sector, sends about 150,000 shillings ($1,159) home each month. He said he plans to remain in Doha despite the conflict. Western Union reported an acceleration in outbound remittances from the Middle East during the early phase of the conflict.

In India, money sent home by overseas workers rose more than 28 percent in the three months through March.

Country-level remittance shifts Remittances to the Philippines grew at their slowest pace in almost four years in April. Inflows account for about 10 percent of Philippine GDP, and roughly 2.4 million citizens work in the Middle East. Central Bank of Kenya data show private transfers from Gulf states rose in March before falling 18 percent in later months.

Bangladesh and Sri Lanka also recorded increases during the initial period. Economists expect growth in the region's major economies to slow this year even as talks between the U.S. and Iran continue toward a potential 60-day peace framework.