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UAE begins to cut foreign workforce

Our Correspondent in Abu Dhabi

The United Arab Emirates has stopped recruitment in 80 per cent of all categories of workers from the subcontinent. Most of these are the so-called "unskilled workers" categories, which constitute those working as labourers and helpers.

According the UAE Ministry for Labour and Social Affairs, there are thousands of unskilled labourers in the UAE, most of them from India and Pakistan. And there are hundreds of them who are surplus and jobless.

The ministry claims it is this segment that has come under the visa ban. However, personnel officers from different offices and organisations have found it difficult to get visas for their newly recruited employees, and not all of them are "unskilled."

This move is seen as part of the UAE desire to encourage "Emiratisation" of the workforce, that is, to find employment for a large number of UAE nationals who are otherwise jobless.

Unlike what happened in Saudi Arabia, Bahrain or even Oman, where governments clearly demarcated several categories of jobs exclusively for their nationals under the so-called "Omanisation" or "Bahrainisation", the UAE, despite growing pressure from within, did not force employers to hire locals. At least in the private sector.

However, over the last year or two the government has subtly tried to promote employment of locals in the private sector. This came in the form of rejecting applications for new workers by the Labour Ministry and giving a list to employers of unemployed nationals. However, this did not work because firms preferred to employ foreign workers simply because there were available cheap and also partly because of the perceived notion that the Arab workforce is a lazy one.

In the last few months, a debate had raged in the Arabic press about "demographic changes" wherein it was stated that there were more foreigners in the country than locals -- which is true -- and that they were being affected socially, culturally and economically.

Sources say that only about 20 per cent of the population in UAE constitute nationals, while only 10 per cent of the total workforce are nationals. Naturally, with population growing at the rate of about 5.6 per cent, the government was feeling the pressure. To top it, the government had to integrate over 15,000 who graduated in higher education every year.

But there are two schools of thought among the UAE nationals and at all levels. While one group strongly feels that locals need to be given preference in employment over foreign workers in all categories -- except for some 20 categories of skilled workers designated by the Labour and Social Affairs Ministry -- another group feels that the government should not abandon the foreign workers.

The first group includes the educated unemployed youth and top government officials, while the second includes intellectuals and writers. The first group has also suggested that no expatriate should be allowed to live in the country for more than two periods of three years each. The second school of thought says that "we should not forget the gigantic efforts put" by the foreign workers in building the UAE.

Apparently for now, many believe round one has been won by the first group. But, at the same time they also feel that this cut-back will not last long, especially as oil revenues are not expected to last long and already the economy has shown signs of slowing down.

Whatever may be the case, the fact remains that it is the subcontinent which is going to be hit hard -- especially India. And there are quite a few here who are prepared to face the eventuality that they may be asked to pack up and go home.

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