Sheikh Dr Sultan bin Muhammad Al Qasimi, Ruler of Sharjah, has set out an action plan to bolster workers' rights in the emirate and improve their terms and conditions.
He issued a law to reorganise the Sharjah Labour Standards Development Authority (SLSDA), a body he established in 2014.
The changes, reported by state news agency Wam on Monday, will include the appointment of a president responsible for shaping the strategies of the organisation and ensuring employers in the private sector meet labour standards.
The legislation lays out the authority's priorities.
These include "ensuring workers' rights and looking after the employers' interests", as well as "striving to achieve a decent life for workers and improve the terms and conditions of their life and work".
The authority's goals also include "strengthening working relationships between employers and employees and motivating them to implement labour legislation and standards" and "ensuring the availability of the required standards in accommodations following best practices".
The SLSDA president, to be appointed by decree, will be granted the power to suggest general policy, put in place strategic plans and propose draft laws which they will present to Sharjah Executive Council.
They will also be expected to supervise the workflow of the authority, issue administrative decisions and follow up on their implementation, prepare the authority's annual budget and submit periodic reports on the authority's work.
The Emirates has strict laws in place to support employees, including those on lower incomes.
In accordance with UAE law, all establishments with more than 50 workers paid less than Dh2,000 ($544) in monthly wages, must provide each worker with at least three square metres of space in a well-lit, air-conditioned and well-ventilated accommodation.
The Sharjah labour authority oversees programmes, projects, training courses and activities to support workers.
It monitors Sharjah businesses’ adherence to labour legislations in co-ordination with the Ministry of Human Resources and Emiratisation and other relevant public departments.
Since its establishment, the authority has organised several educational, medical and recreational programmes with help from other departments in the emirate and the country.
In 2018 it launched its annual sports tournament for workers, providing them with an opportunity to win up to Dh250,000 in prizes in games of football, basketball, cricket, volleyball and hockey.
Last year, it opened a recreational park in Al Sajaa industrial area for more than 100,000 workers.
Spanning 15,000 square metres, the park includes two small cricket pitches, two multipurpose fields, walking paths, green spaces, mosques, shops, cafes, mail boxes and several service rooms.
During the same year, Sharjah labour accommodations were provided with 35 libraries that include books in different languages, as part of the ‘Library in every labour camp’ campaign.
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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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Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
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