UAE decision to close private maid-hiring agencies will stamp out rogue companies


Ramola Talwar Badam
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The UAE decision to close non-government maid-hiring recruitment agencies will deter companies from exploiting domestic workers, said diplomats and voluntary groups who assist maids.

As The National reported on Tuesday, the Ministry of Human Resources and Emiratisation said it would shut private agencies by March. Agencies based in freezones will not be affected, but there are thought to be very few.

"Some people are brought on tourist visas and this practice needs to be stopped. It is a welcome move to protect domestic employees whose well-being we need to protect," Nalinda Wijerathna, Sri Lanka's consul general in Dubai, told The National.

“We will need to understand the process that is being planned and get information about how any new system will work.”

If the recruitment process is streamlined, it will help many cases where maids run away because of harassment by the employer

Nasser Al Hamli, Minister of Human Resources and Emiratisation, told members of the Federal National Council on Tuesday that citizens and residents must hire domestic workers from Tadbeer centres.

Mr Al Hamli said it was the responsibility of Tadbeer to hire workers from abroad.

Tadbeer recruitment offices for domestic workers were set up by the ministry in 2018. There are 54 centres across the country.

Volunteers from the Sri Lankan Welfare Association – known as Sahana – have helped more than 100 maids who fled from their employers because of mistreatment.

“The move will prevent rogue agencies and individuals from getting people on visit visas and duping them. This will be eliminated when Tadbeer gets involved,” said Isthiaq Raziq, president of Sahana.

“Innocent people pay 200,000 to 400,000 Sri Lankan rupees (Dh4,000 to Dh8,000) to agencies, but when they come here it is not the same job they were promised.

Hamad Al Rahoomi, FNC representative for Dubai, said many privately-owned maid firms had poor standards. Courtesy: Federal National Council
Hamad Al Rahoomi, FNC representative for Dubai, said many privately-owned maid firms had poor standards. Courtesy: Federal National Council

"If the recruitment process is streamlined, it will help many cases where maids run away because of harassment by the employer," Mr Raziq said.

“We get to know when people on visit visas are physically abused and not treated humanely with the number of daily chores they are given. All these are illegally recruited.”

Recruitment agencies in Sri Lanka must register with the Foreign Employment Bureau and the embassy and consulate overseas, so a worker can seek consular assistance in the event of a dispute.

India, another big source of domestic staff for the Gulf region, appealed to workers to use an online registration system to sign up with approved recruitment agents and employers.

But there have been several cases of maids locked up and denied food by unscrupulous recruiters who lure jobseekers to the UAE.

An awareness campaign on Twitter used video messages from workers, detailing how they fled apartments where they were being held, as a warning not to trust unregistered agents.

Families who employ maids said issues need to be resolved over Tadbeer charges and for procedures to be simplified and made more flexible.

Seema Rao-Reed, a visual artist in Dubai, said the standard two-year contract did not work for people who required maids for a shorter period of up to one year.

“There is less stress if you do this through Tadbeer because you don’t worry about legalities, the insurance is covered and it guarantees fair pay to the maid,” she said.

"But if we need a maid only for six months or a year, then to pay for two years is too expensive. Tadbeer says the contract is transferable but we need to find another sponsor. With the worry about redundancies, it is not feasible to find a sponsor and get your money from the new sponsor."

An Abu Dhabi resident said the Tadbeer centres did not have sufficient information about the specific process involved in hiring a maid or details on candidates.

“Private agencies are better informed and more efficient,” said Ms Siddiqi, who gave one name. She said she was exasperated when Tadbeer was unable to answer her questions but charged Dh2,000 more than private agencies, plus a monthly fee.

The UAE plan is  to begin a new chapter based on high standards and respect for human rights.

Mr Al Hamli said the ministry was working to help Tadbeer bring down costs and that fees would be revised annually to make the service competitive.

Anam Rizvi contributed to this report 

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Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
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Current number of staff: More than 150
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Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.

These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.

Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.

Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.

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.

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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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