Political System

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Introduction

In 1999 the United Nations Human Development Index (HDI) placed the UAE forty-third in its list of countries with high human development and the fourth most developed of Arab states. The HDI measures overall achievements in 174 countries on the basis of life expectancy, education and general standard of living.

Since its inception, the UAE has seen remarkable progress in health care. Today, the UAE has a comprehensive free health service funded by the government, and a developing private health sector.

State-funded educational opportunities have also blossomed since the establishment of the federation, when only a tiny minority of the population had access to formal education. A comprehensive free education system is now available to all students, male and female. In addition, the UAE's youth have ready access to higher education, both federally funded and at the many internationally accredited private institutions that are being established throughout the UAE. Generous grants are also available for those wishing to study abroad.

Free access to education has meant that women in the UAE have been able to play a significant role in development with the complete support and commitment of Sheikh Zayed and the UAE government. The belief that women are entitled to take their place in society is grounded in the UAE Constitution. These constitutional guarantees have been carried through into implementing legislation.

By the end of 1998 the wholesale, retail restaurant and hotel sector constituted 22 per cent of the work force, pushing construction into second place with 14 per cent. Forty-one per cent of the workforce is based in Abu Dhabi, followed by Dubai with 30 per cent; 15 per cent work in Sharjah, 6 per cent in Ras al-Khaimah, 4 per cent in Ajman, 3 per cent in Fujairah and just 1 per cent in Umm al-Qaiwain. A major change since the early 1970s has been the huge increase in the numbers of educated nationals who are entering the workforce every year: by the year 2000 an estimated 200,000 high school students will graduate in the UAE with a further 46,000 graduating in higher education. The challenge is to develop a dynamic labour policy to absorb this large outflow of national graduates and to tap both human and natural resource s for the welfare of the country. A key element of this policy is a renewed focus on educational curricula and training so that graduates are equipped with the specialties and skills required in the job market. Emiratisation of the workforce, a process which has already commenced in the public sector, is also a high priority on the national agenda.

Development and training

Development and training of the UAE's youth is a major focus of Government policy. With over half of the UAE's citizens under 18 years of age, there is an urgent need to create new employment opportunities. This is coupled with a recognition that high quality training is essential if the country's growth is to continue. Besides conventional training opportunities in institutes of higher education, industry-based training is growing rapidly in the oil industry and in organisations like telecommunications firm Etisalat, Emirates Airline and the Gulf Aircraft Maintenance Company, GAMCO, the largest dedicated overhaul facility in the region. The Abu Dhabi-based Centre of Excellence for Applied Research and Training, CERT, provides channel through which modern technological skills can be transferred to the UAE, through joint venture training arrangements with leading international academic institutions and industrial corporation. A special Cabinet Manpower Committee supervises the development of the UAE's human resources, with the objectives of maximising local employment and reducing dependence on expatriate labour.

EMIRATISATION

The process of emiratisation has been pursued aggressively by the Ministry of Labour and Social Affairs over the last two years with some success, as we have seen, in sectors such as telecommunications and banking. In April 1999 an agreement giving priority to graduates of the Higher Colleges of Technology (HCT) in recruitment for jobs in both the public and private sectors was signed between HCT and the Ministry of Labour and Social Affairs. However, the Ministry is in favor of simultaneous development of the economy and human resources and is reluctant to alienate the private sector by forcing a quota for employment of nationals.

Nearly 1,000 nationals seeking work registered with the ministry in 1998, of which approximately 80 per cent were women. The difficult task ahead is to assist jobseekers in finding suitable employment. In the past national graduates have shown a reluctance to enter private sector employment. This was borne out by a recent study entitled 'Attitudes to the Private Sector' which showed that 96.5 per cent of students at Abu Dhabi Women’s Higher College of Technology wanted to work after graduation, of which 62 per cent favored the oil sector, a further 48 per cent said they would like to work in the government sector and only a meager 11.5 per cent opted for the private sector. Most students cited high salaries, greater benefits, job security and shorter working hours as their reasons for preferring the state and semi-state sectors.

PANDE

The Government has sought to tackle the employment issue by setting up the Public Authority for National Development and Employment (PANDE), an autonomous body under the supervision of the Minister of Labour and Social Affairs. Established in mid-1999, the authority is responsible for matching the real needs of employers to the qualifications of UAE nationals seeking employment. The Labour Market Information System (LMIS), also under development, will advise nationals on emerging job opportunities and trends in the employment market. The service will be free of charge.

EMIRATISATION

will collect information about the UAE's labour market, track changes and carry out planning and research.

Job website

The Ministry of Labour and Social Affairs is also launching a new website, comprising a data bank on job vacancies in the country's private and public establishments and on available job seekers. The site will provide potential job applicants with a chance to file their application forms and CVs directly with the website. Alternative l y, private companies or government establishments looking for employees in specific specializations will be able to access the data bank. The ministry will not be actively seeking jobs for the unemployed registered in its system.

However, job seekers will also be able to access the Ministry's site looking for job vacancies advertised on the site by companies registered with the Ministry. The service for both job seekers and companies is free of charge. Although the Ministry will not be directly involved in the recruitment process it plans to allocate a computer at its premises to enable job seekers to visit its site and submit their applications. In addition to the recruitment service, the site will also provide information on UAE Labour Law. Queries on labour related issues can also be submitted.

Reorganization of the workforce

Another significant difference between the 1970s and the 1990s is that today there is a surplus of unskilled manpower in the UAE. The Ministry of Labour and Social Affairs has started a major reorganization of the labour market in order to discourage a further influx of foreign unskilled manpower and to try to absorb the present surplus of manual workers. New guidelines have been issued to all visa committees for processing applications to import foreign manpower. In 1996 the Government granted an amnesty to all those foreigners who were staying illegally. They were given a chance either to obtain new employment under a sponsor or leave the country without facing a fine or punishment. As a result 150,000 expatriate workers found new jobs and sponsors, and 170,000 left with the help of their embassies. Despite all these efforts there are still violations of the labour law, a situation which the Ministry is addressing, for example with the introduction of new high-tech labour cards. These cards will help the Ministry update its files and obtain an accurate picture of the labour market.

PENSIONS AND SOCIAL SECURITY

From September 1999 UAE nationals working for private companies are entitled to the same social security and pension benefits as UAE nationals working for the Government. Through the provision of benefits in the private sector, the Government hopes to attract m o re nationals to non-government jobs, there by speeding up emiratisation of the work force. Under the new national pension and social security scheme, which took effect in the public sector in May 1999, nationals who have contributed to the scheme will be eligible for retirement benefits, disability benefits and compensation on death. Current end-of-service entitlements for government employees have been transferred to the new programme.

The General Authority for Pensions and Social Security (GAPSS), an independent entity which invests employer and employee contributions to fund the social security programme , was set up to operate the scheme. The Government allocated the required capital of Dh 500 million in the 1998 budget for the establishment of the authority, which commenced functioning as an investment body from 15 December 1998. Detailed information on the scheme is available on the following web site:

www.uae.gov.ae/gpssa/index.htm

SOCIAL WELFARE

Recognizing that even in a prosperous country such as the UAE there will always be vulnerable members of society who need assistance, the Government has instituted a comprehensive social welfare system operated by the Ministry of Labour and Social Affairs. The Ministry also makes specific allocations to the country’s women’s organizations to ensure that all those in need, particularly women in rural areas, have access both to an economic safety net and to assistance in adapting to a fast-changing world. Social welfare assistance is extended in accordance with the Social Security Law which came into effect in 1977. According to official statistics the Ministry of Labour and Social Affairs spent Dh 5,860 million on social welfare from 1986 to 1997. The total cost in 1997 was Dh 660 million. Of the families receiving social assistance, 25 per cent were in Abu Dhabi, 23 per cent in Dubai, 21 per cent in Sharjah, 7 per cent in Fujairah, 5 per cent in Ajman and 3 per cent in Umm al-Qaiwain. Among those who benefited fro m the assistance the elderly we re the largest group re p resenting 43 per cent of the total. They were followed by widows, divorcees, the deserted, the unmarried, expatriate wives, orphans, families of prisoners and married students. Today almost 40,000 nationals benefit from social security and nearly 9,000 receive pensions totaling Dh 720 million annually.

In July 1999 the Federal National Council approved new legislation regulating social security benefits. Under the new law people entitled to monthly social benefits include national widows and divorced women, the disabled and handicapped, the elderly, orphans, single daughters, married students, relatives of a jailed dependent, estranged wives and insolvents. Under the law all widowed and divorced national women who were married to foreigners are also eligible for social security benefits. The Social Security Committee may also consider an application from a national woman whose foreign husband is unable to earn a living for reasons beyond his control or if his income is less than that needed to run the home (Dh 5,000).