Ministry of FNCA Affairs hosts dialogue on labour market challenges in the UAE

Dr. Gargash stated in his opening remarks that the objective of organizing the workshop was to provide an informal forum to generate debate, new ideas and policy recommendations. A key objective was also to bring together different experts and government officials working on this issue to meet each other and to discuss various perspectives on the labour market from both a local and federal viewpoint.

The workshop was the first in a series and falls under the Minister's mandate as chair of the Permanent Committee for Monitoring Developments that Impact the Reputation of the UAE. This Permanent Committee is made up of government officials and deals with issues that affect the UAE's interests.

McKinsey & Company collaborated with the ministry on devising the workshop agenda and gave a presentation on labour market reform in the GCC. Presentations were also made by the Dubai School of Government on the need for an integrated approach to policy making and by the Canadian Department of Foreign Affairs and International Trade on stimulating labor market reform within a federal system of government.

Discussions highlighted that the UAE is a unique case due to the demographic imbalance, strong segmentation in society and high job expectations from UAE nationals entering the job market. It was agreed that an integrated policy on labour market reform should be developed based on a sustainable, long term vision for the country and its people.

Key questions were tabled for the consideration of policy makers including the need for a strategy on what type of society the UAE aims to achieve over the next twenty years in terms of its economy and societal makeup. The country needs to develop a long term vision and outline steps to develop a capital intensive economy and avoid a "race to the bottom" caused by dependence on low-skilled, low-wage labour. Human capital development requires creative and multi-disciplinary approaches within a "package of complementary policies."

Participants said that the lack of robust labour market data is an obstacle to achieving consensus on problems and developing solutions. Policy makers must embark on a review of existing laws and regulations and an analysis of both national and local market dynamics and their interrelationship. Finally, participants stressed that economic growth must be linked to ensuring social protections for all and encouraging the emergence of an Emirati middle class.

Participating government officials included: Yussuf Abdul Ghani, Undersecretary, Ministry of Labour and Dr Abdulrahim Yousef Al Awhadhi, Assistant Undersecretary, Ministry of Justice.

Private sector and human resources representatives from the following were present: Abu Dhabi Emiratization Council, Emirates National Development Program, National Bank of Dubai, Al Fahim Enterprises, Emirates National Oil Company, Abu Dhabi Commercial Bank, Tanmia, Dubai Knowledge and Human Development Authority and Al Jaber Group.

The MSFNCA will build on these discussions and aims to host more workshops to gather information and input on socioeconomic variables affecting the labour market. A coordination procedure will be established to facilitate communication between public and private sector parties and between federal and local authorities on improving the UAE's work environment.