(MENAFN- The Peninsula) An unprecedented fall in oil prices and reports of key projects being shelved in the energy sector are causing some concern among expatriate communities. The price slump and its possible impact on their future plans are hot topics of discussion in community forums and family gatherings. Qatar Petroleum's (QP) decision to scrap its $6.4bn mega project has aggravated the concerns.
Industry sources told The Peninsula that some companies in the energy sector have already imposed an 'unofficial freeze' on hiring. A 'de-mobilization' of employees is in place in some energy companies. Some companies have announced a freeze on hiring in the 'non-production' departments. A foreign energy company operating in Qatar has shelved nearly a dozen mid-term to long-term projects, sources said.
Insiders say some big energy companies are currently busy preparing a restructuring of their staff pattern. "There is a fear in the air of a possible retrenchment and job cuts. I do not know whether it is real or the fears would prove wrong in the coming months," a middle-level executive at a leading energy company said.
The decline in oil prices is giving more worries to families who joined their spouses recently expecting a job. "Getting a job for qualified lady professionals was not a big problem until recently. But things have changed and I know many of them, who recently arrived here with significant years of professionals experience in their respective home countries, have been desperately looking for a job. Now, QP's announcement has further dampened the spirit of expatriate job market," an Asian community leader told The Peninsula, requesting anonymity.
"Yes, the declining oil prices and its possible impact are a serious concern among our community. Almost 32 percent of our compatriots are directly or indirectly working in the energy-related fields," he added.
There is no doubt that the steep oil decline will hit corporate budgets and the local economy. A section of expatriates also fear that a prolonged decline in prices of crude could bring to an end the tax-free easy life. Their worry is that the government might come out with a plan to impose some tax on their remittances to balance the dwindling revenues, an idea some neighbouring GCC countries have been toying with, of late.
There are unconfirmed reports that a major energy conference scheduled to be held in Doha in the coming weeks has been cancelled after the main sponsor, incidentally a top energy company, backed out from the event.
According to a popular Indian news portal, the decline in oil prices and its possible impact on Indian community in the GCC was one of the key topics debated at the just concluded Non-Resident Kerala meet held in Kochi in southern India. Indian expatriates make up the largest workforce in Qatar. The diplomatic missions of some Asian countries are closely watching the dynamics of fast declining oil prices.
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