The National

A better future for blue collar workers

A Dubai-based nonprofit has given blue collar workers the tools to lift themselves up to the next bracket of financial stability. But labour reforms can¿t rest on the shoulders of volunteers alone.

National Editorial

February 14, 2011

  • English
  • Arabic

Sagar Lamichhane is an ambitious man, just like Amit Gurung and Musharaf Seeni Mohammed. All three hail from South Asia, make less than Dh2,000 a month doing hard labour in the UAE, and yearn for a way to climb the more lucrative corporate ladder.

Now, thanks to the efforts of a group of professionals in Dubai, they may have found one.

As we reported yesterday, SmartLife, a Dubai-based nonprofit that provides expatriate labourers with informal training and assistance, has expanded its presence in the Emirates. First launched in India, the UAE offshoot aims to provide low-paid labourers with the skills they need to lift themselves up to the next bracket of financial stability.

Rajalingam Thathaiah, a labourer originally from the Indian state of Tamil Nadu, is proof of the programme's success. Once a low-level employee of a Dubai cleaning firm, Mr Thathaiah was recently promoted to an office position, a move he credits to a six-month computer course facilitated by SmartLife.

The point of the SmartLife training programme is to increase interaction between the white collar public and the country's blue collar workforce.

But that doesn't mean they should bear the burden alone. As we have frequently reported on these pages, the list of challenges that labourers in the UAE face is massive; grievances range from withheld passports and unsafe work conditions to contract breaches and unpaid salaries.

The Government has worked to close these gaps. New rules have made it easier for employees to change jobs and put into place rules requiring monthly paycheques be deposited directly into bank accounts. But because enforcement of existing laws is inconsistent, many workers fall through the cracks. Other segments of the foreign workforce, notably domestic help, are almost overlooked entirely. Human rights groups have frequently raised alarm bells, concerns that can't be ignored.

At its website, www.adoptalaborer.com, SmartLife offers a portal to link potential mentors with UAE-based labourers, and a 16-word statement of mission: "They build our homes, offices and venues of pleasure," SmartLife founders observe. "But what do we do for them?"

It's a question one group in Dubai is trying to answer.

Ziina users can donate to relief efforts in Beirut

Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”

The most expensive investment mistake you will ever make

When is the best time to start saving in a pension? The answer is simple – at the earliest possible moment. The first pound, euro, dollar or dirham you invest is the most valuable, as it has so much longer to grow in value. If you start in your twenties, it could be invested for 40 years or more, which means you have decades for compound interest to work its magic.

“You get growth upon growth upon growth, followed by more growth. The earlier you start the process, the more it will all roll up,” says Chris Davies, chartered financial planner at The Fry Group in Dubai.

This table shows how much you would have in your pension at age 65, depending on when you start and how much you pay in (it assumes your investments grow 7 per cent a year after charges and you have no other savings).

Age

$250 a month

$500 a month

$1,000 a month

25

$640,829

$1,281,657

$2,563,315

35

$303,219

$606,439

$1,212,877

45

$131,596

$263,191

$526,382

55

$44,351

$88,702

$177,403

 

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

While you're here
What is hepatitis?

Hepatitis is an inflammation of the liver, which can lead to fibrosis (scarring), cirrhosis or liver cancer.

There are 5 main hepatitis viruses, referred to as types A, B, C, D and E.

Hepatitis C is mostly transmitted through exposure to infective blood. This can occur through blood transfusions, contaminated injections during medical procedures, and through injecting drugs. Sexual transmission is also possible, but is much less common.

People infected with hepatitis C experience few or no symptoms, meaning they can live with the virus for years without being diagnosed. This delay in treatment can increase the risk of significant liver damage.

There are an estimated 170 million carriers of Hepatitis C around the world.

The virus causes approximately 399,000 fatalities each year worldwide, according to WHO.

 

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