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Dubai 'Emiratisation' May Threaten Expat Jobs

by Lorys Charalambous, Tax-News.com, Cyprus

06 May 2003

Dubai, and the United Arab Emirates (UAE), of which it forms a part, are making a determined push to increase the participation of locals in the work-force under a policy known as 'emiratisation'.

The emiratisation policy does not necessarily mean that all expatriate workers will be retrenched, but it does entail an increase in UAE nationals in the workforce, said a senior official recently. However, expatriates with special skills and talents will continue to play a role in the development of the UAE.

Just 30% of the Dubai Internet City's (DIC) workforce are UAE nationals. "The DIC also has a strategy to increase the percentage of national workers," said Dr Omar bin Sulaiman, CEO of the City.

The UAE is considering 'intervention policies' that will secure the interests of employers and ensure the job stability of UAE nationals in the private sector.

"The underlying objective behind such laws and restrictions is to create a favourable work environment in the private sector for UAE national employees, that will positively affect their productivity and improve their attitude towards working in this important sector," said Matar Al Tayer, UAE Minister of Labour and Social Affairs, at the inauguration of a four-day Careers UAE 2003 exhibition last week.

Al Tayer said employing UAE nationals in the public and private sector will ultimately lead to economic stability and growth. "The government is totally committed to emiratisation, but the private sector has been given the freedom to choose their employees."

Dubai Islamic Bank (DIB) aims to increase the current level of emiratization within its staff to 34% through the Career Fair. DIB has one of the highest levels of emiratisation in the financial sector with over 31% of its staff UAE nationals. Mr Ahmed Al Sirkal, Head of the Human Resources and Administrative Affairs Department at the bank noted: “DIB has made a concerted effort to foster local talent and believes in creating the right opportunities to attract highly qualified, skilled UAE nationals. We aim to increase the percentage of UAE nationals at the bank from the current level of 31% to 34%.”

Dr Omar bin Sulaiman, CEO of Dubai Internet City, noted that while the Dubai Internet City is devoted to emiratisation, it does not mean that all UAE nationals will be guaranteed a job there - only those who are dedicated and hard-working will be absorbed. "Nationals must not take for granted that jobs are waiting for them at DIC, which will scour the market to hire the most dedicated individuals irrespective of nationality. Dubai is a cosmopolitan city and we will look at all individuals of various nationalities to recruit the best. You will secure a job not because you are a citizen but because you are a hard-working citizen."

Offshore jurisdictions, particularly in the Caribbean, have frequently attempted to increase opportunities in their financial sectors for local inhabitants, but with only mixed success. The difficulty of creating effective specialist training units in a small economy is a hard barrier to overcome, and affirmative action employment programs often have the reverse effect to that which is intended. It remains to be seen whether Dubai will prove an exception to a rather unfortunate rule.

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