ABU DHABI // Children from low-income families in the Northern Emirates are three times more likely than pupils in the capital to drop out of school, a study suggests.
Every 1 per cent reduction in family income is associated with a 21 per cent increase in the probability of quitting education early, researchers found.
Other main contributory factors, especially for boys, were poorly educated mothers, fathers with no job and being brought up in a single-parent family.
"Parents' level of education - especially the mother's - was an important factor that determined whether the children continued with education," said Dr Natasha Ridge, executive director of the Sheikh Saud bin Saqr Al Qasimi Foundation for Policy Research and co-author of the study.
The study's findings reinforce recent concerns expressed by senior government ministers over education, employment and Emiratisation. Sheikh Mansour bin Zayed, Minister of Presidential Affairs and Deputy Prime Minister, said last week the education system must better meet the challenge of preparing young Emiratis for the world of work.
And Saqr Ghobash, the Minister of Labour, called on Monday for a national debate on measures to reduce unemployment, particularly among the young.
For the latest report, researchers studied 496 Emirati pupils over two years: 149 left public education without completing high school, and the other 347 went on to university.
About 56 per cent of dropouts said they left to support their families and 11.3 per cent said they could not afford to continue at school.
The mothers of those who dropped out had an average of just over five years' education, and their fathers only six. Mothers of students who continued had spent an average of 11 years studying.
As a result, only 18 per cent of the students said their parents monitored their school work.
Students whose fathers were not working were also at a greater risk of dropping out, Dr Ridge said. Those whose fathers were retired, unemployed or dead were 19 per cent more likely to leave school.
One Emirati student who dropped out in Grade 10 said his parents were illiterate and never asked about school. "Their lack of interest encouraged us to skip class and misbehave at school because no one paid attention," he said.
The report said such experiences should have "wide policy ramifications for the UAE, as retirement ages are based on years of service rather than the age of the person".
"Fathers need to be role models and show them the value of hard work," said Dr Ridge. "There seems to be a lot of hidden unemployment."
Being brought by a single parent, or dysfunctional family situations such as conflicts at home, contributed to boys dropping out of school. "Low socioeconomic indicators are also associated with single parent families," the report said.
Dr Rima Sabban, a sociologist at Zayed University in Dubai, said disturbance in the family can affect children's self-esteem if they develop a feeling of not being cared for, and their education suffers. "If the child feels neglected and the family atmosphere is unsettled they lose interest," Dr Sabban said.
"What the children lack is someone observing them to spot signs of trouble. Schools can play a role through a strong social worker and counselling connection with the family."
Dr Ridge said her research showed a need to make the school environment warm and welcoming. Improving the quality of teachers in boys' schools to prevent them from leaving for lucrative government jobs was also important, she said.
More than 72 per cent of students who dropped out said they did not get along with their teachers and 73 per cent felt the school was unsafe.
"There needs to be a system of early identification because dropouts do not happen suddenly," she said.
"Do they regularly skip school, are their grades dipping? These are all red flags for dropouts. If that is the case, then someone needs to go to, for example, Abdulla's house and see what is happening. Take a personal interest."
aahmed@thenational.ae
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- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
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Reading List
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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.”
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
