Angel Borja Jr, labour attache at the Philippines embassy, wants to promote his country’s higher-skilled workers. Sammy Dallal / The National
Angel Borja Jr, labour attache at the Philippines embassy, wants to promote his country’s higher-skilled workers. Sammy Dallal / The National

Philippines seeks to reduce domestic workers in UAE



ABU DHABI // The Philippines’ new labour attache in Abu Dhabi hopes to reduce the number of his countrywomen coming to the UAE to work as housemaids by 2016, and focus more on sending skilled workers and professionals.

“There has been a tendency to focus heavily on the plight of household service workers as they are the most vulnerable sector,” said Angel Borja Jr, who took up the position this month.

"We would now like to promote our higher-skilled workers in the oil and gas, information technology and industrial sectors."
One of the new nuclear power plants in Al Gharbia, for example, will employ 15,000.

“I’ve already processed close to 1,000 contracts but I need to visit the worksite,” he said. “This is an area that falls under our jobs promotion role.”

At a labour-mobility conference in Abu Dhabi, Rosalinda Baldoz, the Philippines labour secretary, said her country was focusing on the higher end of the job market.

In August last year, she set 2016 as a target of a five-year programme against abusive employers of domestic workers.

“Her standing instructions to labour attaches in countries with a high deployment rate of household service workers (HSWs) is to try to reduce it,” Mr Borja said.

“Her vision is by 2016 we would no longer count HSWs among the biggest category of workers going out of our country. The rate of the HSW has outpaced any other skilled category. We should do something drastic to prevent this huge outflow.

“Of course, we cannot prevent them from leaving the country,” he said. “It would be a constitutional violation of their right to travel.”

Maids, nannies, family drivers, cooks and gardeners are roles in the category of household service workers. Most are women.

“If not for the HSWs, we would be better at serving other overseas Filipino workers here in a more positive way by doing more developmental activities,” Mr Borja said

“We are weighed down with the problems of our HSWs. They work under the same roof, share the same toilet and kitchen as their employers and get harassed and suffer the indignities of a domestic worker.”

Delmer Cruz, the labour attache in Dubai, said there were efforts to reduce the number of domestic workers sent to Dubai and the Northern Emirates. His office has found alternative sources of employment for women in the hospitality and wellness sector.

“We should veer from unskilled and vulnerable job categories,” he said. “The economy in Dubai is picking up and these women can work in hotels and spas where they enjoy basic pay and tips, and their own accommodation instead of a household setting.”

Contract substitution victimises the majority of household workers. This happens when a second, inferior, labour contract to the signed original is presented to a worker, either before leaving her home country or after arriving in the UAE.

In December 2006, a reform package from the Philippine overseas employment administration required that household staff be paid a minimum monthly wage of US$400 (Dh1,469), be at least 23 years old and not be required to pay placement fees.

“The $400 minimum wage is a very contentious issue in Abu Dhabi,” Mr Borja said. “What we are trying to enforce here is a guiding rate.

“The $200 salary rate has been in effect in the last 20 to 30 years and has already overtaken events in the Philippines: the high inflation rate, the dramatic improvement in the exchange rate of the US dollar and the Philippine peso and the prevailing minimum wage in the country.”

To circumvent the minimum wage, employers resort to “paper compliance”, agreeing to the terms in a contract, but paying the worker a reduced wage.

“But it usually involves a tacit agreement between the agency and the worker,” Mr Borja said. “Out of desperation, she accepts the job.”

Domestic workers, however, should not be treated as a liability by the Philippine government despite the huge amounts of money spent to send them home, he said.

“Their situation here is wretched,” he said. “But I’m happy to report that from a high of 200 in February, we now have 55 workers under our care.”

The women are being fed and counselled by labour and welfare officials at the Filipino workers resource centre at the embassy in Abu Dhabi. All had left their jobs after complaining of a lack of food and sleep, overwork, non-payment and other mistreatment.

There are 680,000 Filipinos in the UAE. Of those, 10 per cent are household workers.

WHAT MACRO FACTORS ARE IMPACTING META TECH MARKETS?

• Looming global slowdown and recession in key economies

• Russia-Ukraine war

• Interest rate hikes and the rising cost of debt servicing

• Oil price volatility

• Persisting inflationary pressures

• Exchange rate fluctuations

• Shortage of labour/skills

• A resurgence of Covid?

What is a robo-adviser?

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.

Tonight's Chat on The National

Tonight's Chat is a series of online conversations on The National. The series features a diverse range of celebrities, politicians and business leaders from around the Arab world.

Tonight’s Chat host Ricardo Karam is a renowned author and broadcaster who has previously interviewed Bill Gates, Carlos Ghosn, Andre Agassi and the late Zaha Hadid, among others.

Intellectually curious and thought-provoking, Tonight’s Chat moves the conversation forward.

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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.”

Rocketman

Director: Dexter Fletcher

Starring: Taron Egerton, Richard Madden, Jamie Bell

Rating: 3 out of 5 stars 

The Super Mario Bros Movie

Directors: Aaron Horvath and Michael Jelenic
Stars: Chris Pratt, Anya Taylor-Joy, Charlie Day, Jack Black, Seth Rogen and Keegan-Michael Key
Rating: 1/5

UAE Premiership

Results
Dubai Exiles 24-28 Jebel Ali Dragons
Abu Dhabi Harlequins 43-27 Dubai Hurricanes

Fixture
Friday, March 29, Abu Dhabi Harlequins v Jebel Ali Dragons, The Sevens, Dubai

The biog

Fatima Al Darmaki is an Emirati widow with three children

She has received 46 certificates of appreciation and excellence throughout her career

She won the 'ideal mother' category at the Minister of Interior Awards for Excellence

Her favourite food is Harees, a slow-cooked porridge-like dish made from boiled wheat berries mixed with chicken

Company Profile

Company name: Hoopla
Date started: March 2023
Founder: Jacqueline Perrottet
Based: Dubai
Number of staff: 10
Investment stage: Pre-seed
Investment required: $500,000

'Ashkal'

Director: Youssef Chebbi

Stars: Fatma Oussaifi and Mohamed Houcine Grayaa

Rating: 4/5

Signs of heat stroke
  • The loss of sodium chloride in our sweat can lead to confusion and an altered mental status and slurred speech
  • Body temperature above 39°C
  • Hot, dry and red or damp skin can indicate heatstroke
  • A faster pulse than usual
  • Dizziness, nausea and headaches are also signs of overheating
  • In extreme cases, victims can lose consciousness and require immediate medical attention
How to play the stock market recovery in 2021?

If you are looking to build your long-term wealth in 2021 and beyond, the stock market is still the best place to do it as equities powered on despite the pandemic.

Investing in individual stocks is not for everyone and most private investors should stick to mutual funds and ETFs, but there are some thrilling opportunities for those who understand the risks.

Peter Garnry, head of equity strategy at Saxo Bank, says the 20 best-performing US and European stocks have delivered an average return year-to-date of 148 per cent, measured in local currency terms.

Online marketplace Etsy was the best performer with a return of 330.6 per cent, followed by communications software company Sinch (315.4 per cent), online supermarket HelloFresh (232.8 per cent) and fuel cells specialist NEL (191.7 per cent).

Mr Garnry says digital companies benefited from the lockdown, while green energy firms flew as efforts to combat climate change were ramped up, helped in part by the European Union’s green deal. 

Electric car company Tesla would be on the list if it had been part of the S&P 500 Index, but it only joined on December 21. “Tesla has become one of the most valuable companies in the world this year as demand for electric vehicles has grown dramatically,” Mr Garnry says.

By contrast, the 20 worst-performing European stocks fell 54 per cent on average, with European banks hit by the economic fallout from the pandemic, while cruise liners and airline stocks suffered due to travel restrictions.

As demand for energy fell, the oil and gas industry had a tough year, too.

Mr Garnry says the biggest story this year was the “absolute crunch” in so-called value stocks, companies that trade at low valuations compared to their earnings and growth potential.

He says they are “heavily tilted towards financials, miners, energy, utilities and industrials, which have all been hit hard by the Covid-19 pandemic”. “The last year saw these cheap stocks become cheaper and expensive stocks have become more expensive.” 

This has triggered excited talk about the “great value rotation” but Mr Garnry remains sceptical. “We need to see a breakout of interest rates combined with higher inflation before we join the crowd.”

Always remember that past performance is not a guarantee of future returns. Last year’s winners often turn out to be this year’s losers, and vice-versa.

LIVERPOOL TOP SCORERS

(Premier League only)
Mohamed Salah 129
Robbie Fowler 128
Steven Gerrard 120
Michael Owen 118
Sadio Mane 90

Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

La Mer lowdown

La Mer beach is open from 10am until midnight, daily, and is located in Jumeirah 1, well after Kite Beach. Some restaurants, like Cupagahwa, are open from 8am for breakfast; most others start at noon. At the time of writing, we noticed that signs for Vicolo, an Italian eatery, and Kaftan, a Turkish restaurant, indicated that these two restaurants will be open soon, most likely this month. Parking is available, as well as a Dh100 all-day valet option or a Dh50 valet service if you’re just stopping by for a few hours.
 


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