Why the GCC’s green economy depends on fair wages

The Gulf region’s economic ascent has long been underpinned by access to low-cost labour. Migrant workers have powered the construction of skylines, serviced booming hospitality sectors, and supported households across the region. For decades, this model provided a competitive advantage: rapid development at low cost.

But as Gulf Cooperation Council countries transition toward diversified, knowledge-based economies—and increasingly engages with global Environmental, Social and Governance (ESG) expectations—questions are emerging about whether its labour market structures are fit for the future. Among the most pressing: should countries in the GCC define and enforce a minimum or living wage?

The current landscape

Today, wage regulation in the GCC is patchy. Some countries such as Qatar and Saudi Arabia have introduced minimum wages for certain categories of workers. While in some countries, like Saudi Arabia, these policies only apply to nationals, in others they also include migrant labour. However, implementation remains uneven, and no country in the region has adopted a universal standard aligned with local cost of living.