UAE domestic staff deserve more support



The push for the standardisation of domestic help contracts by the Federal National Council is a sound one. As The National reported yesterday, the FNC has been told that this could be the answer to sponsors' dissatisfaction with the hiring fees set by recruitment agencies, which many of them perceive to be too high. Sultan Al Mansouri, head of the Higher Committee for Consumer Protection at the FNC, told the council that there should be more collaboration between the ministries of labour and interior to address the issue.

Indeed, there are several issues that need to be addressed. One is whether the recruitment cost includes the proper training of domestic staff before they come to the UAE. If this is the case, then higher fees are justifiable because employers should expect a certain basic skill level from their domestic help. For example, an unsophisticated person coming from a poor rural village in the Philippines could struggle to adapt to life in a typical UAE household, and any money spent on their education and training would be a good investment for both them and their employer.

However, it seems that some recruitment agencies are raising their fees without spending any more on training. As Ali Al Nuaimi, an FNC member from Ajman, noted, fees tend to rise and fall at different times of the year, and there is no transparency in this process. That provides a good argument for the regulation and monitoring of those agencies, and for the introduction of a standard contract.

Another important issue is the minimum wage set out in contracts. Domestic staff usually work long hours, with various responsibilities ranging from cleaning and cooking to looking after children. Without them, many women would not be able to work outside their homes and some households simply would not function. Unfortunately, some employers don’t seem to value the work of their maids and other staff. Despite their invaluable contribution to society and the economy, domestic staff often do not get the respect they deserve.

The proposal to have a nationwide standard contract for domestic staff from all nationalities is one step towards improving their conditions and bringing stability to the relationship between them and their employers. It should be followed by more legal protections according to intentional standards. Domestic staff deserve more appreciation and support.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Humaira Tasneem (c), Chamani Senevirathne (vc), Subha Srinivasan, NIsha Ali, Udeni Kuruppuarachchi, Chaya Mughal, Roopa Nagraj, Esha Oza, Ishani Senevirathne, Heena Hotchandani, Keveesha Kumari, Judith Cleetus, Chavi Bhatt, Namita D’Souza.

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Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.