Debt Before Departure: The Role of Informal Credit in Trapping Migrant Workers

In the last two decades, the prevalence of South Asian migrant workers has significantly increased in the UAE’s construction sector, and they are under huge debt. Although researchers heavily stress the role of employers in migrant workers’ debt, the role of debt before departure has not been investigated. Thus, this study bridges this gap in the literature in the context of South Asian construction migrant workers. The objective of this study is to investigate how informal recruitment fees and debt arrangements contribute to bonded labor and dependency among migrant workers. A qualitative approach was used to conduct in-depth interviews with 30 South Asian migrants employed in the construction sector. This article highlights how pre-migration debt—which is often accrued through informal loans and exploitative recruitment fees—has been underexplored in migration studies. Drawing on interviews with 30 South Asian laborers, this study identifies five interconnected themes: pre-migration debt bondage, exploitative lending practices, lack of legal recourse, emotional manipulation, and a cycle of dependency. While UAE labor policies have improved, the real vulnerabilities lie in the informal recruitment systems and weak oversight in migrant workers’ countries of origin. Consequently, five themes were generated from the analysis: pre-migration debt bondage, exploitative lending practices, no legal recourse, emotional manipulation, and cycles of dependency. This study contributes to our existing knowledge by revealing the experiences of migrant construction workers from South Asia in the UAE. While the UAE has established one of the region’s most progressive legal frameworks to protect migrant workers and set clear labor standards, many exploitative practices occur outside its jurisdiction, particularly in the workers’ countries of origin. This study underscores that the root of the problem lies in weak enforcement and informal recruitment networks in sending countries, not in UAE policy itself. Addressing these challenges requires coordinated international action to ensure that migrant protection begins well before arrival.