Identifier
Created
Classification
Origin
09ABUDHABI271
2009-03-18 14:05:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Abu Dhabi
Cable title:
THE DILEMMA OF EMIRATI JOB SECURITY
how-toVZCZCXRO8292 RR RUEHDE RUEHDH RUEHDIR DE RUEHAD #0271/02 0771405 ZNR UUUUU ZZH R 181405Z MAR 09 FM AMEMBASSY ABU DHABI TO RUEHC/SECSTATE WASHDC 2265 INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE RUEHDE/AMCONSUL DUBAI 8204
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
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