Dubai FNC member Hamad Al Rahoomi has called for a widening of Emiratisation through all the UAE job market. Victor Besa / The National
Dubai FNC member Hamad Al Rahoomi has called for a widening of Emiratisation through all the UAE job market. Victor Besa / The National
Dubai FNC member Hamad Al Rahoomi has called for a widening of Emiratisation through all the UAE job market. Victor Besa / The National
Dubai FNC member Hamad Al Rahoomi has called for a widening of Emiratisation through all the UAE job market. Victor Besa / The National

FNC members seek reassurance of jobs for Emiratis after new 10-year visa rules


Haneen Dajani
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The Federal National Council has urged the government to broaden its Emiratisation drive to secure more jobs for UAE nationals.

Members sought reassurances that there will be more opportunities for Emiratis, in the same week that 10-year visas for key expat workers were announced by the Cabinet.

Labour minister Nasser bin Thani Al Hamli was asked to expand a national policy in which about 2,000 companies are told to prioritise Emiratis over expats for jobs.

“We need a comprehensive procedure that includes the entire job market - and not just the sector that the ministry covers,” said Dubai member Hamad Al Rahoomi, in reference to 400 job titles that are targeted out for Emiratisation.

“There are other sectors outside the jurisdiction of the ministry, so for all those jobs Emiratis should be given a priority, whether private or public sector.”

The debate in the FNC, which was held overnight on Tuesday into Wednesday as is customary in Ramadan, came days after the most significant changes to residency rules in a decade were enacted on Sunday.

Members stressed they backed the changes, as long as Emiratis were not left behind.

The system brought in in February asks companies to consider citizens first when a vacancy arises.

Companies are not compelled to take UAE nationals on, but should give them an interview or opportunity they may not have otherwise received.

The ministry scans a database of thousands of Emirati jobseekers.

If a suitable candidate is not found, or is found but is rejected by the employer, the company can go ahead and recruit the expat.

But certain government departments, semi-government agencies, banks and many private sector companies do not come under the programme.

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“They should all be under one comprehensive Emiratisation system, and through this system, work permits [for expats] can also be issued," said representative Mr Al Rahoomi.

The minister assured the council that the ministry is looking for ways to enhance job opportunities for UAE nationals. For example, they are introducing an initiative in September that guarantees each unemployed Emirati three job opportunities. That includes not only university graduates, but also those with a high school diploma or even lower qualifications.

“But the challenges are big, and we will work together to overcome those challenges,” he said.

The ministry has had a major push to get UAE nationals into jobs this year, said Mr Al Hamli.

There were 5,531 Emiratis recruited in the first four months of this year, up from 2,746 in the same period last year.

There were also 197,000 potential job vacancies in the private sector this year between January and April, he said.

Meanwhile, FNC members agreed that the new residency visa changes announced by the Cabinet this week - which offer visas of up to 10 years for specialists in medicine, science, research and technical fields and their families - will not affect the Emirati job market.

“On the contrary, I think it will provide more job opportunities for UAE nationals,” said Mr Al Rahoomi.

“It will bring more capital to be invested in the country and that will open up more fields for Emiratis to work in."

Investors bringing business and capital into the country will also be eligible for visas of up to 10 years, which are expected to stimulate job creation.

“It will provide wide opportunities," Mr Al Rahoomi added.

Ras Al Khaimah representative Naama Al Sharhan, also said: “We are certain that UAE nationals will continue to be prioritised for job opportunities, at the end of the day Emiratisation is a target set by the Rulers.

“And we welcome any non-Emirati person who will add value and we can benefit from his or her expertise and service if no Emirati is found to fill that job.”

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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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General John Allen, President of the Brookings Institution research group, commended the role the UAE has played in the fight against terrorism and violent extremism.

He told a Globsec debate of the UAE’s "hugely outsized" role in the fight against Isis.

"It’s trite these days to say that any country punches above its weight, but in every possible way the Emirates did, both militarily, and very importantly, the UAE was extraordinarily helpful on getting to the issue of violent extremism," he said.

He also noted the impact that Hedayah, among others in the UAE, has played in addressing violent extremism.

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