BEIRUT: With the Arab region hosting the most “significant stock of migrants,” experts and research fellows from the Economic Research Forum (ERF) convened to discuss the impact returning migrants to the Middle East and North Africa (MENA) have on the region.
In 2010, the stock of emigrants in the Middle East was 18.1 million, or 5.3 percent total of the MENA population.
“Migration needs to be utilized properly. We can’t just expect migrants to do their work, we have to reduce cost of money transfers for them in order to get more out of remittances and we have to ease business regulations,” said Jackline Wahba, an expert from the University of Southampton in the UK.
Wahba conducted an extensive study on labor market outcomes of return migrants in Egypt.
In the case of Egypt, the region’s most populous country, studies show that about 61 percent of migrants are more educated.
In fact, alongside of tourism and Suez Canal revenues, remittances in Egypt are among the top three largest foreign currency generators.
“Educated returnees who come back to Egypt tend to earn 20 percent more than locals when they decide to seek employment,” she said.
The paper, which uses a unique set of data where current migrants are observed, found strong evidence that shows return migrants are more likely to become employer/self-employed — even after controlling for all those selection biases — and that overseas temporary migration can result in a wage premium after return.
Studies have shown that Egyptians who have lived overseas are more likely to start up their own businesses upon returning to their homeland.
The report also showed that Egyptians are more likely to migrate temporarily in order to save up money for marriage, for example.
“For Egyptians, it is mainly to save up to get married,” said Wahba. “They tend to prefer consuming in their own country. Their preference is to save up money and come back home, the economic term is ‘home consumption.’”
For Arab emigrants, visiting their home countries always seems to be a priority, with about 90.1 percent visiting annually.
Comparing Egyptian emigrants to Moroccan, although both studies have proven that more educated citizens tend to emigrate, the trend for Moroccans has changed since the 1970s.
Those emigrating from Morocco tend to be disadvantaged groups and young men. Unskilled and educated citizens both tend to emigrate. For them, it is sometimes a temporary move, circular, or permanent. It was proven, however, that Moroccans migrate for longer periods than Egyptians.
“Return migration in Morocco is not as important as in Egypt,” said Bachir Hamdouch, an ERF researching fellow and professor from University of Mohamed V Morocco.
Morocco, which witnessed a massive emigration wave in the 1960s, has a diaspora that accounts for 10 percent of its population, 85 percent of which immigrated to Europe.
In 2010, 8 percent of Morocco’s GDP came from remittances.
According to the ERF researchers, many Arabs have been migrating in search of better lives because they are not finding better options in their home country, therefore, their migration is somewhat “forced.”
If these citizens left and went to countries where they also had no rights and better opportunities, not much would differ. Therefore, they would be forced to remain in their home countries.
Egypt for example, ranks 108 among the best countries to do businesses, while Syria ranks at 136, and Tunisia ranks at 40.
All of these low numbers when compared to the countries’ economic potential.
“We need governments creating the better structures and the right social and economic institutions that returning emigrants need to do business,” Wahba concluded.
The purpose of the conference was not only to engage in discussions regarding the findings of the research on Arab migration, but to also reach out to policymakers, showing them the importance of engaging the region’s diaspora in the economy as well as social aspects.
