The Federal National Council holds a remote session to discuss the mental well-being of domestic workers on Tuesday. FNC
The Federal National Council holds a remote session to discuss the mental well-being of domestic workers on Tuesday. FNC
The Federal National Council holds a remote session to discuss the mental well-being of domestic workers on Tuesday. FNC
The Federal National Council holds a remote session to discuss the mental well-being of domestic workers on Tuesday. FNC

Housemaids will need good-conduct certificate to enter UAE, minister says


Haneen Dajani
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Domestic workers of all nationalities will soon need a good-conduct certificate to enter the UAE.

The ruling was announced by the labour minister during a virtual session of the Federal National Council on Tuesday.

A trial with nannies and maids coming from Kenya is already under way.

It will gradually be extended to domestic workers of other nationalities, who will be asked to obtain the certificate from their home country.

"A decision was issued from the Cabinet in this regard, and the Ministry of Foreign Affairs and International Co-operation is co-ordinating its application with the concerned parties," said Nasser Al Hamli, Minister of Human Resources and Emiratisation.

“The measure has already been applied to Kenyan housemaids but it will come into force in phases.”

The measure has already been applied to Kenyan housemaids but it will come into force in phases

The minister made the statement after he was questioned by Kifah Al Zaabi, an FNC member.

“There have been a number of crimes committed by foreign domestic workers due to psychological issues or criminal backgrounds. What is being done to check their criminal history and mental health?” asked Ms Al Zaabi.

As a preventive measure, housemaids will also be screened for mental health before taking up a job in the UAE.

“We agree this is very important and we included [mental health checks] as a condition in international agreements signed recently,” the minister said.

Mr Al Hamli said agreements have been signed with more than 13 countries to ensure the good health and psychological well-being of domestic workers before they come to the UAE.

“This is something that we seek to achieve,” he said.

In 2018, a maid was sentenced to death by the Sharjah Criminal Court for torturing and killing her employer’s nine-month-old baby.

A maid was also sentenced to death in Abu Dhabi five years earlier after she killed her employer’s four-month-old child by smashing her head on a table.

Ms Al Zaabi said the number of such cases are relatively low in the UAE, “but considering our secure and stable society, even if such a crime occurs once every five years, it will have a big impact”.

“We aim to reach zero crimes by domestic workers," she said.

Tuesday’s session was the last to be held by the council before their summer recess. Sessions are likely to resume in October.

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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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