Six-year expat cap gets UAE backing

Construction workers, along with many other expats that are classified as unskilled labourers, will be affected by the proposed six-year residency cap. (Getty Images)

Plans that could see millions of people forced out of the Gulf under a six-year residency cap for unskilled workers took a step closer on Monday when the UAE labour minister said the Emirates will back the proposal.

Speaking in the run-up to a meeting of GCC labour ministers in Riyadh next month, Ali Bin Abdullah Al Ka'abi said the issue will be top of the agenda.

“The cap of three years, renewable for another three years, will be applicable to unskilled labourers working in GCC countries, and will help tackle the demographic imbalance in this region,” Al Ka'abi said, quoted UAE daily Gulf News.

The proposed cap was first announced by Bahrain Labour Minister Majeed Al-Alawi at the beginning of this month and will be discussed at the upcoming GCC Summit in Doha at the end of the year.

Al-Alawi's initial comments suggested that the proposals will cover all expatriates working in the Gulf, but the minister has since clarified his stance, stating that the cap will only apply to non-professional and semi-skilled labourers. It is still unclear as to who exactly will be included in these categories.

Al-Alawi said at the time the cap was necessary to stop the erosion of local culture and to stem soaring unemployment among nationals.

His remarks have sparked a firestorm, with expatriates from across the Gulf accusing the minister's plans of being shortsighted and misguided and claiming the move could have dire consequences for the region's economies.

Despite the move to limit the cap to non-professionals, the proposal will still have serious consequences for many of the 13 million or so expatriates living in the GCC if it is passed at the GCC summit.

The six countries that make up the GCC - the UAE, Saudi Arabia, Bahrain, Qatar, Oman and Kuwait - are hugely dependent on foreign workers to drive their booming economies, the vast majority of which are unskilled workers.

According to statistics quoted by newswire AFP, there are around 35 million people living in the GCC, of whom 37% are foreign workers.

Al Ka'abi did say that the cap will be applied to each Gulf state separately, meaning that workers could continue to work in the GCC after six years, just not in the same country.

“However, the cap would be applied in each country separately, so workers can work in other GCC countries after completing six years in one country,” he added.

However, this may come as little comfort for the millions of Indians, Pakistanis and the Filipinos - which make up the vast majority of unskilled workers - that have lived in places in Dubai for years and now consider it their home.

Al Ka'abi stressed the need to enrich national dialogue about the labour issue and to fix the demographic imbalance by reconsidering legislative, executive and regulatory frameworks of the UAE labour market, according to state news agency Wam.

"The UAE is currently spearheading efforts of the labour importing countries to make international conventions on labour rights more responsive to the new realities, including the fact that guest workers in labour receiving countries are temporary residents," Al Ka’abi said, quoted Wam.

He added that the joint forum of the labour exporting and importing countries - to be held in Abu Dhabi in January - will seek to develop a scenario for ensuring rights of foreign workers.

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READERS' COMMENTS

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6 year cap
Posted by zababer, abudhabi, uae on Friday 2 November 2007 at 09:00 UAE time


this a good news for the Foreign workers to tak port in develop the countriy

6 Year Cap
Posted by Gloria, Sharjah, UAE on Sunday 28 October 2007 at 09:00 UAE time


The point of the exercise is the fact that the unskilled expats far outnumber the indigenous population. Something has to be done to protect that, or there will be another Fiji. On the upside they will be allowed to work in other GCC countries so will benefit the area as a whole with their expertise. Companies will be able to avail of other workers moving due to the cap in the other GCC countries.

6 year expat cap
Posted by Jimbo, Dubai, UAE on Wednesday 24 October 2007 at 11:00 UAE time

Lee's comments are spot on. However consider this. Will this new proposed restriction encourage employers to work in a more efficient manner and reduce the dependence on unskilled labour? For example, with the exception of savvy international courier companies, how often do you see a delivery van with less than two people in it? Very rarely because a driver drives and a helper helps. There is no cross over of tasks. Similarly the use of manual labour astounds me on construction sites when there are machines far more efficient and cost effective for digging a trench for example than providing 12 visas, tickets, medical, food, accommodation, transportation etc to achieve an inferior result and take ten times as long.

6 yaer cap on expats
Posted by Laji M, Dubai, UAE on Wednesday 24 October 2007 at 09:00 UAE time

This region needs the low paid expat force to drive their construction and other occupations. The reason this matter is now being discussed is a veiled threat to those countries( esp. India, Pakistan & Philippines) taking a pro-active role in ensuring fair treatment (including living condition and timely & adequate monetary remuneration) for their citizens. The International Labour Organisation and Human Rights Organisations have also joined the fray to ensure workers rights. This move is merely the GCC countries reply to these actions.

Unaffordable Luxury
Posted by Taher Moinuddin, JUBAIL INDUSTRIAL CITY, Saudi Arabia on Tuesday 23 October 2007 at 11:00 UAE time

There is no point is applying a six year ban on the unskilled workers citing the excuse that the cap was necessary to stop the erosion of local culture and to stem soaring unemployment among nationals. If unemployment is the point then it is a reason valid enough but if they are going to recruit the next wave of unskilled labourers from the same countries as the previous ones this is not an acceptable reason. It just seems to be a whim of some individuals. As far as the erosion of local culture is concerned, local culture is embedded into people staying in the same place for less than six years instead of the other way around. And it is easily discernible that the expats in the Gulf states try to emulate the actions of the locals rather than vice versa. That you should kick away these people who are adapting the local culture and getting in new ones who are not exposed to the local culture is more detrimental in undermining the cultural base of the Gulf countries. There are more cons to be considered than the pros for such a solution. Each of the Gulf countries has the right to decide on their policies but a policy which will work in reverse to development should be avoided. More to be considered is that the unskilled workers or labourers would be last to influence anyone with their cultural ways because of their not being able to mix with the local class. It is the more affluent expat who mixes with the local people. The unskilled worker will not have time enough after working for 10-12 hours shift to socialize with the likes of him in the local fraternity. And the final straw is whether the Gulf countries can afford this luxury considering the demand in the labour market with the locals keeping away from such jobs and that the Indian and Pakistani labour markets, which are the backbone for the Gulf supply, are becoming highly unaffordable.

Is UAE going to train and drain?
Posted by KALADEVI, Dubai, United Arab Emirates on Tuesday 23 October 2007 at 10:00 UAE time

After 6 years of working (skilled or unskilled) they gain abundant Gulf experience which make them very skilled to execute efficiently in the Gulf region. Is UAE going to throw out these efficient people every 6 years and bring in fresh hands? This is like train and drain...

Unskilled labour in the GCC Countries
Posted by Mohammad Osman, Riyadh, Saudi Arabia on Tuesday 23 October 2007 at 09:00 UAE time

I think it is a mistake to shorten the time of living in these countries since the foreign labourers are the backbone for the countries' fast-moving economies otherwise they should see some where else to import people having the same qualities and wages. Regards,,, MOHD.

6 years cap
Posted by Sivakumar,N.R., Abu Dhabi, UAE on Tuesday 23 October 2007 at 08:00 UAE time

The authorities should think in all aspects prior to backing such an important decision. If they implement 6 years cap, how can I pay a mortgage in a UAE flat with a 20 year plan? This will affect UAE real estate boom also.

Disgrace
Posted by john, Dubai, UAE on Tuesday 23 October 2007 at 08:00 UAE time

This loosely means pay an agent to come here and work for six years with little or no holiday, no pay rise in low-cost accommodation, pay back your agent his exorbitant fee. Then go home and be replaced with someone else for the next years on the same terms and conditions....!!! These people are the ones building your country and they deserve much better than this..!!!

6-Year Treat Booming
Posted by Jhon, Dubai, United Arab Emirates on Monday 22 October 2007 at 20:00 UAE time

I agree with Lee and to all the other expats in the GCC region, yes it really is true that there have been a big increase in the number of unskilled and semi-skilled workers in this developing region especially in the manufacturing and real estate sector. But the GCC committee should look into the fact that they themselves earn from the meager earnings of these people whom they charge high cost of living and expensive cost of housing. Local people own multiple buildings or villas where they earn huge sum of money by renting them. What the GCC committee should look into is developing their countrymen to accept and nurture middle-class employment.

6 years mishap
Posted by Angelo, Dubai, UAE on Monday 22 October 2007 at 15:00 UAE time

Are the visionaries of the GCC countries looking ahead at having locals working as drivers, construction workers, etc by creating a 6-year cap on unskilled labour? And whom do they called 'unemployed' when rightly mentioned by an earlier reader that every local has 100's of trade licenses, own buildings, etc and just by not working for someone they are categorized as 'unemployed'?

6 YEAR CAP FOR EXPATS
Posted by Buddhadeb Mookerjee, Dubai, UAE on Monday 22 October 2007 at 15:00 UAE time


Iam in full agreement with Lee. He has brought out valid points which merit serious consideration.

6 year expat cap
Posted by Lee, Dubai, UAE on Monday 22 October 2007 at 13:00 UAE time

Why kick out an unskilled worker from India or Pakistan when more than likely he will be replaced with another Indian or Pakistani worker? The lower wage positions are not going to be taken by Emiratis or Qataris (for example). And if the same worker is able to work in another GCC country then what is the benefit of shifting an ex-pat to another country? If lower wage earners are happy in their positions, happy with their employers, then why disrupt a good thing? The GCC governments should look into the business sectors where their citizens want to work such as banking, finance, etc. and see where adjustments can be made in these sectors to create more jobs for GCC nationals. Playing with the unskilled labor markets is going to create problems and will not create jobs for GCC nationals.

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