The report, written by academics at the United Arab
Emirates University in the Emirate of Al Ain, concludes that although a
majority of nationals works in the public sector, nevertheless it has reached a
point of stagnation and must aggressively steer citizens into the private
sector. According the study,
Emiratis comprise only four percent of the private sector work force, compared
with 52 percent in the public sector. The reminder of the positions are taken
up by expatriates from other countries who have moved to the UAE for
employment.
The overwhelming influx of foreign workers has allowed
the Emirates to develop a modern economy since the discovery of oil in the
1960s; but since that time the demographic balance has shifted so that Emiratis
now account for a mere 20 percent of the population.
According to the report, citizens' expectations that
"the government will provide" for them is a major problem.
"These jobs-for-life provide salaries several times
higher than private-sector ones and in addition, convey an array of benefits
such as shorter working hours and longer holidays," the report says.
The study also singles out pension packages, which it
calls "generous." On average, after completing 20 years of service,
nationals are entitled to retire on 80 percent of their final salary.
Ingo Forstenlechner, assistant professor in the Economics
& Finance Department of the United Arab Emirates University, and one of the
co-authors of the report, told The Media Line that, "It's all about
managing the expectation that you think you have the right, just because you
think you are a citizen, to a well-paying and minimally-productive job"
told The Media Line.
According to the report, "it is the way in which oil
wealth has been historically distributed that has led to a situation in which
nationals choose to remain unemployed until they obtain a government job."
Asked what will happen in the future if nothing is done,
Forstenlechner replied that,
"There will be much more unemployment in the future
among Emiratis. The public sector is not growing; it can't provide enough jobs
for everyone. On the contrary, entire departments are being outsourced,"
according to Forstenlechner.
Asked whether the government is listening, Forstenlechner
pointed out that in times when these questions are becoming more and more
important, government funding for research is being cut.
Regarding the future, the report predicts that, "if
the social contract is not updated to reflect contemporary demographic and
labor-market realities, increasing numbers of unemployed nationals," those
without connections to secure a public sector job "will become ever more
likely to voice their discontent and ask exactly what is in the 'ruling
bargain' for them."
"Expatriates in general do not make a point of
learning the local language or customs which creates a situation of Emirati
culture and traditions being represented mostly within official circles and
less so in the social circles," Sultan Sooud Al-Qassemi, Emirati columnist
recently told The Media Line. It's one example of how the impact the influx of
foreign workers not only impacts on the UAE's economic situation, but also
effects the country's social balance.
