This photo taken on Nov 19, 2020 shows the skyline of Dubai in the United Arab Emirates, with a view of Burj Al Arab (right) and Burj Khalifa (center), the world’s tallest building, in the background. (GIUSEPPE CACACE / AFP)
Sweeping reforms to visa programs and labor laws will prove crucial for the United Arab Emirates if the nation is to realize its goal of becoming one of the world’s biggest economies in the next five decades, experts say.
The UAE, which is celebrating its golden jubilee on Dec 2, must press ahead with reforms that will strengthen its position in retaining and attracting qualified foreign workers, who currently make up 90 percent of the labor force in the country, they said.
Scott Livermore, chief economist at Oxford Economics Middle East, said being open to the global labor pool will help the UAE manage skills shortages that may occur within the country
In October, the Abu Dhabi Government Media Office reported that the Abu Dhabi Department of Economic Development has recognized more than 500 doctors who obtained the so-called Golden Visas. UAE media reported in November that at least 44,000 residents in Dubai have received their Golden Visas since the launch of the program.
The UAE implemented a new visa system for long-term residence in 2019 — the Golden Visa — allowing foreigners to live, work and study in the UAE without a national sponsor, including 100 percent ownership of their business. These visas, the UAE government website states, “will be issued for 5 or 10 years and will be renewed automatically”.
The UAE government has, for a long time, recognized the importance of investment in human capital, said Froilan Malit, Jr, managing director of Rights Corridor, an online human rights and migrant policy research platform.
Malit believes the reforms will continue to be a “testing point” for the UAE as it is to be seen how these would evolve.
The migration expert said “sending countries” – like some of those from Asia, Africa and some Arab countries – are also “desperate to facilitate” exporting labor, as their economies have become weak and cannot support all the workers.
Scott Livermore, chief economist at Oxford Economics Middle East, said being open to the global labor pool will help the UAE manage skills shortages that may occur within the country.
The UAE has taken a twin-pronged approach to allowing foreigners to contribute to the economy, Livermore said, and this is to attract and retain foreign talent as well as investment.
In September, the UAE rolled out “Projects of the 50”, which aimed to fast-track the nation’s development in various sectors, globally and domestically, highlighting support for the digital space. In the same month, it also launched a $6.4 billion Emirati Competitiveness Program.
The program mandates private sector companies to ensure that 10 percent of their workforce, or 75,000 new private sector jobs, are filled by Emiratis in the next five years.
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Trying to nationalize or offer the jobs to locals is “always problematic”, especially if a country is dependent on oil and the locals do not have incentives to get high education or highly skilled vocational training, noted Moamen Gouda, a board member of the Middle East Economic Association, a non-profit organization based in Ohio in the United States.
“We have seen this happening in many Arab countries. In the 1990s… 2000s, they are always talking about nationalization, but they could not do it,” said Gouda, who is also an associate professor of Middle East Economics at the Graduate School of International and Area Studies at Hankuk University of Foreign Studies, or HUFS, in South Korea.
But Gouda believes the UAE is a “special case” as it has a history of having a service-dependent economy and many nationals who pursued education elsewhere.
“They are highly capable and (are) willing to return to UAE and fill positions in their home country,” the professor said.
Rasha Al Joundy, a senior researcher at Dubai Public Policy Research Centre, said the pursuit of being one of the strongest economies does not mean that the UAE has to give up looking for more local Emirati talents.
“Pushing the private sector to implement a 10 percent quota means employing the right talent within the needs of the company, but it does not interfere with how the company sees its work strategy,” Al Joundy said.
“Giving Emiratis the opportunity to benefit (from) the success of their country is a positive factor for the Emirates and the companies because it gives foreign entities the ability to understand the market they are working on,” said Al Joundy.
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Malit, from Rights Corridor, believes the 10 percent quota for the private sector to ramp up Emirati talent would likely increase, citing the growing number of graduates and local unemployment.
Al Joundy said the UAE is known for its agility to adapt and make the decisions needed in a timely manner. She does not believe that the changes taken so far are the end or meant to be the last decisions towards the Emirates’ vision for the next fifty years.
“There is more to come to solidify its position either on the regional or international economic stage. Being responsive and alert to the technological changes happening in the developed countries and having the capability to utilize these technologies is a significant factor in the UAE success story,” said Al Joundy.
jan@chinadailyapac.com