THE DILEMMA OF EMIRATI JOB SECURITY

UNCLAS SECTION 02 OF 02 ABU DHABI 000271 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PGOV ELAB ECON KDEM SCUL AE SUBJECT: THE DILEMMA OF EMIRATI JOB SECURITY Sensitive but unclassified; please protect accordingly. *********************** * Missing Section 001 * *********************** ABU DHABI 00000271 002 OF 002 they have met their 4% quota. This is "much more cost effective than actually hiring them" he lamented. NATIONALS HAVE CHOICES -------------- ¶8. (SBU) The UAE government defends its duty to protect the jobs of its citizens, especially with such a large inflow of expatriate labor. (Editorials sometimes cite the problem as expatriates "stealing" local jobs.) The reality, however, is that Emiratis simply don't want many of the jobs on offer and are not qualified for many others. Although the government is investing heavily in education, developing knowledge-based industries, and strengthening the private sector, most employed UAE nationals still work in the government sector or family businesses, with only 15,000 registered with the Ministry of Labor as private sector employees (compared to over three million foreign workers). Another demographic slice of Emiratis earns a living from rents on residential property (sometimes developed with government financing) or fixed "agent" fees from the revenues of businesses run by expatriates. (By law, a local sponsor must own 51% of a business, even if the local partner makes no practical contribution to it.) Family money from these arrangements sustain many locals, and can have the effect of either motivating performance to amass greater wealth or cajoling non-performers into a life of ease. ¶9. (SBU) As for the elite tier, top performing Emiratis are an impressive but small group peppered through the companies of particular interest to the rulers of Abu Dhabi and Dubai. Many received their education in the West and wear many hats as they diversify and expand the nation's goals. Meanwhile, the "working" demographic competes with an economically motivated expatriate work force and displays some worrying tendencies. Some are dedicated assets to their employers, to be sure; although the following anecdotes are also sadly representative. -- A relatively senior official kept Embassy staff waiting while he performed "urgent" work -- an endless game of Solitaire. -- Two Emirati women employed by Abu Dhabi Commercial Bank made a Filipina do their work on the bank computer system. When discovered, they claimed they were not trained on that system but the ruse was disproven by training records; the ladies simply said they forgot what they had learned. -- An Emirati college student told the Ambassador his goal was "a good salary" after graduation; pressed on how he might earn that salary, he said "any office, where I can play games on the computer." -- Asked about his work, one local businessman was surprised by the suggestion that "work" had anything to do with him. "I hire other people to do that," he asserted. ¶10. (SBU) Comment: Immunizing locals from a modern work ethic, or the impact of the economic downturn, will lock in unproductive habits -- and in fact foster them. Blaming foreigners for "stealing" local opportunity also risks stoking xenophobia in a nation proud of its tolerance (and reaping the vast economic gains of both its openness and comfortable reliance on foreigners). Like many governments, the UAEG must find a way to respond to nationals' labor concerns while also ensuring development goals are not compromised. End comment. OLSON