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UAE firms shirking 'social duty'
Abu Dhabi has hit out at the UAE private sector and wealthy individuals for skirting their "social duty", claiming the overwhelming majority are failing to invest any of their money into socio-economic development schemes.
The Department of Planning and Economy (DPE) said in a report on Saturday that corporate and individual earnings had soared over the last few years thanks to the UAE's booming economy, record oil prices and tax-free environment, but very little was being put back into the community.
The DPE said profits of UAE-listed companies were expected to hit 70 billion dirhams ($19 billion) by the end of this year, while the number of millionaires living in the Gulf state, which currently stands at around 75,000, was increasing by 15% annually.
"...private sector 'social duty' has not yet taken roots deep enough to translate into [a] tangible contribution to Abu Dhabi, and the UAE in general," the DPE said in its weekly report carried by the official Wam news agency.
"This role is strictly limited to a slim 10% of private firms, and the government continues to be the sole guarantor and sponsor of social development."
The DPE said it was time for companies and individuals to step up and meet their socio-economic responsibilities in order to address the growing gap between the rich and the poor.
"With the government share of socio-economic development plans receding, it is no longer possible for the private sector to ignore its obligations towards the community," it said.
The rich "should be brought face to face with their social and ethical obligations towards a generous, all-giving community", the DPE said.
The department said there needed to be "heated discussions" by the Federal National Council (FNC) and the media to come up with a "clear, all-out vision on how to organise and set social work in motion".
The DPE also called for a board made up of companies, the chamber of commerce and prominent figures to be established to help support social programmes.
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Posted by PMS, dubai, UAE on 8 June 2008 at 15:03 UAE time
Over the last few years everything has gone up, license fees, visa fees, every single government service is being "charged" directly or indirectly. It is almost as if these 2dh., 5 dh, and 10 dh. charges have become an indirect source of income for the government.
When the local government sets the tone by not really giving two hoots about the low salaried , the construction workers or even the middle class workers by not keeping a check on runaway inflation or providing low cost housing or efficient local transport , or low cost education then how can you expect the corporates , whose job it is to make money, to care about anything else.
Posted by RAJENDRA ANEJA, DUBAI, Uae on 26 May 2008 at 14:59 UAE time
Businesses in the Middle East are very stingy, when it comes to spending on social causes. Private sector leaders like to spend on projects, which carry their name, but will not spend on hospitals, universities, orphanages, schools etc. Nor do businesses get involved with improving literacy or professional skills of youngsters. Businesses do not see themselves as coporate citizens, but purely money making machines.
Posted by george thomas, dubai, united arab emirates on 26 May 2008 at 03:07 UAE time
In 1983 or therabouts I watched the film "Wall Street" where mega-trader Gordon Gekko gave the "Greed is Good" speech which served as a morality warning tale on the corruptive power of riches. I suspect that many young Emiratis watching that film today would miss the point completely - and would be showing it to their students, friends, whoever as an example of how to get ahead in the world. Cultures live and die. Greed and Poverty are with us forever. Not unrelated I think.
Posted by Nafees Ahamed, Abu Dhabi, UAE on 25 May 2008 at 11:59 UAE time
The private sector benefits from the infra-structure provided by the governments and UAE is an excellent place for business. The labour force is obliged to the employers due to the concept of "sponsorship". As such, employers take advantage of this situation as well. Finaly, when they have both of these, why to care about socio-economic projects. Before doing this, let the all the companies care about the socio-aspect within the organizationa; the human resource is one factor