Emiratization in the uae and its impact on unemployment sample essay

Monday, 8 June 2015.

UAE and its impact on the unemployment rate

At present, the population of the UAE is more than 8 million people. It is estimated that 87 per cent are expatriates. According to the statistics of the Ministry of Labour (2009, cited in Koji, 2011), 99% of the labour force in the region is expatriates. There is no doubt that these figures are very disturbing. The policies of the emirs are the response of the UAE government to the demographic imbalance noted in the labor market. The policy of emiryeration, in this regard, is aimed at increasing the participation of Emirati citizens in the labor market, as well as reducing the country’s dependence on the labor and experience of expatriates. This document assesses the policies of the Emirate as well as their impact on the state of unemployment in the region (SCCI, 2009; Koji, 2011; Stuart, 2011; Forstenhner, et al., 2012)

As noted above, the policy of emiratization has always been aimed at increasing the participation of citizens of the United Arab Emirates in the labor market. In this regard, the government is also trying to solve the problem of low employment among UAE citizens. In 2009, for example, only 38.7 per cent of UAE nationals were employed in the region, compared with 76.8 per cent for expatriates (Stuart, 2011)

In accordance with these policies, the Government has already introduced a quota system in the banking sector. According to the system, employers in the banking sector are obliged to increase the number of employees of the UAE by 4% per year and by 5%. However, in 2010, the quota system was changed as a response to the challenges that emanate from national policies. The amendments were published by the Ministry of Labour. Consequently, the private sector was forced to “apply a specific emanation through a quota-based system” (SCCI, 2009, p. 14). In this regard, it is expected that companies should reserve at least 15% of their positions for UAE citizens in private sectors. However, the companies are known to try to fulfill the requirements by trying to fill these positions with “the fact that they are not, in fact, tasks or ghosts, which are only to meet government quotas” (Stuart, 2011, p.1). In this case, the Government is following closely that such behaviour is such as “additional penalty rates in labour cards” (Stuart, 2011, p.1)

Despite this, however, politics still faces many challenges. For example, according to Koji (2010)

But ultimately, the question is whether the Emirate policy helped to improve the rate of employment among the emirates (that is, reducing unemployment). This paper focuses on the financial and banking sectors. The statistics and indicators of the emanation cited in Al Tayer (the head of the financial and banking sector UAR) show the results, which are the contrast. For example, in June 2009, of the 36,516 employees in the banking sector, 11,188 were Emirati men and women. In other terms, UAE citizens make up only 6% of the workforce. Almost, at the same rate, UAE citizens account for only 6.5% and 10.6% of the labor force in exchange for financing and business respectively (SCCI, 2009)

It is expected that Al Tayer will account for 35% of the bank sector in the end of 2009 (which is the target percentage). Al-Thayer argued that the global crisis could not affect the process of nationalizing the sector workforce

Although there are encouraging figures in the financial and banking sectors, the reality is quite different. For example, in 2008, December, UAE citizens in the financial and banking sectors were 53, 575. By 2009, the number decreased by 1,468 to 52, 107. This is partly because the citizens of the UAE are citizens of the United Arab Emirates from their positions. Between June 2008 and June 2009, there were 1,388 UAE citizens. In the end, the process of emmiramatization fell by 0.5 per cent, 0.1 per cent and 0.35 per cent in the financial, insurance and banking sectors, respectively, by 2009. These indicators additionally showed that the bank’s branches in the country grew by 27 branches, reaching 784 branches. However, the percentage of elitization has decreased by the same duration (SCCI, 2009)

Indeed, these figures are not a satisfactory justification for emanation. But again, the numbers should not be read in order to say that the emiration in no way affects the growing participation of UAE citizens in the labor market of the country. At the same time, there are many factors explaining the contrast, factors that not only relate to the emanation

A possible explanation for the ongoing demographic imbalance has much in common with the transition to the non-oil sector, which aims to reduce the government’s dependence on oil revenues. The new sector (production, construction and services) has been expanded. Unfortunately, just as the government was forced to attract a large number of foreign workers in the 1970s due to the lack of skilled and unskilled national workers, such new sectors have prompted the massive arrival of expatriates taking part in the work with UAE citizens

Moreover, citizens of the UAE do not like to carry out duties in unskilled sectors: “these sectors create jobs mainly for expatriates, as citizens tend not to work there due to working conditions” (Koji, 2009b and p. 71-72). Another factor is the increase in the number of young people in the country. The country’s population (15 -24 years) is estimated at about 230,000 people. This is about 25% of the total population. Statistics show that 15,000 graduates (young people) enter the labour market every year. Thus, while the efforts of nationalization are ongoing, the overwhelming number of young people looking for work undermines the potential of the emanation policy. Other aspects include the development of human resources in the post-oil period (that is, significant revenues from inadequate human resources) and globalization among others (Koji, 2011; Forstenberg, et al., 2012)

In conclusion, the document, in accordance with the statistics, justified the government’s desire to increase the participation of its citizens in the labor market. However, these efforts have not been paid because it was initially affected. The attitude of UAE citizens to certain types of working conditions and work, the increase in the number of young people in the country, the development of human resources in the post-oil era and globalization among others are factors that contribute to the contrasting effects of the emanation in the country. As the policy is not binding, it may be the victim of other circumstances such as those mentioned above. Time, it may be that politics is effective

Forstenberg, I., Madi, M.T., Selim, H.M. & Rutledge, E.J. (2012)

Factors influencing the decision to hire employers in the UAE are determined

Koji, N. (2009b),

Koji, N. (2011). Controlist over labour policy and its dilemmas: 40 years

Amiratization in the United Arab Emirates

Shariah Chamber of Commerce and Industry (SCCI) (2009). AgAutomation

The drawing of the National Economy of the Economy

(…) (…)

What you can read next