Okay, we don't know this guy, but is it possible he just likes you. LIKES, not lust, not crush, not anything else... You know how screwed-up relationships are in the Dubs. No natural affection. Is it possible that he just feels comfortable having a natural (maybe even sibling-like) relationship with you? You two obviously have a rapport, and it doesn't sound like you're getting weird vibes from anyone but the wife.
And also, alot here have said that men (married or not) don't go around hugging women. I don't believe that. I know quite a few men who are very huggy. Several are married, and it's not inappropriate, and they aren't doing it for lust or to come on to anyone, just being affectionate. I am not naive, I know the difference between a "feel you up" hug, and a friendly one.
I don't know, it just seems like many people on this thread are too quick to assume baser motives to this guy. I say trust your gut brown-eyes. Remember that, more than anything, this guy probably doesn't have proper nurturing and genuine friendships in his current situations. You and your co-workers are providing something he needs, maybe desperately.
I do agree, though, that his wife is suspicious. Hell,. they are trained to be suspicious. They just call it being "on guard." She probably thinks she is "protecting" her husband from "worldly influences." Bottom line, she is suspicious, or jealous, or both. I'd watch out for her, she has your number. Probably knows where you live by now. You handled her well though. Good luck with it all.
O