In 1971, Abu Dhabi, Ajman, Dubai, Fujayrah, Sharjah, and Umm al-Qaywayn declared their independence from Britain and formed the United Arab Emirates (UAE) (“United Arab Emirates Profile”). In an effort to speed up economic growth in the country, the UAE government introduced the Kafala Sponsorship System in 1971. The Kafala system was a guest worker program that allowed individuals and firms within the UAE to hire migrant workers (Malit and Al Youha). The first wave of Indian immigration to the UAE began with the introduction of this system. A few thousand Indians migrated to the UAE in the 1970’s, but their numbers dramatically increased throughout the 1980’s and 1990’s (Zachariah et. al). As of 2013, over 2.8 million Indian immigrants resided …show more content…
This is because the number of jobs the UAE has vacant far exceeds the native Emirati population, and the Emiratis’ skill level does not match the skill level that is demanded (Desjardins). Generally speaking, Emiratis possess a higher level skill set; the jobs that are available are low-skilled jobs (Desjardins). Since immigrants and Emiratis possess different skill sets which lead to employment in different sectors of the economy, these two groups have not been in competition with each other. However, this is beginning to change. Recently, the UAE government has struggled to guarantee employment to their high-skilled workforce because the public sector has been fully staffed (Suter). This has caused the Emiratis to compete with the immigrants in the job market and has resulted in the UAE’s first wave of involuntary unemployment (Suter). Since immigrants will often work for lower wages than Emiratis, the Emirati population has a higher rate of unemployment than the immigrant population (Gallacher). Additionally, the UAE’s population is rather young, 51% of the population is under 20, which means that involuntary unemployment will only grow larger as the population ages (Gallacher). The Emirati workforce is expected to increase to 500,000 by 2020, compelling the government to create more jobs …show more content…
In 2012, India contributed 5.8% of total foreign direct investment in the UAE, making them the second top foreign investor (“United Arab Emirates”). Additionally, Indians are one of the UAE’s top investors in real estate. In 2015, Indians invested 18.12 billion dirhams in UAE real estate (“What Makes Indian”). Foreign direct investments in the UAE have played a vital role in keeping the economy stable in times of market fluctuations. Consequently, GDP rose 4.6% in 2014 (John “UAE Draws”). Although it is hard to say how much of this GDP increase is directly due to India or Indian immigrants, we can infer that they caused a large portion of it since they are the second top foreign investor in the
...S$1 billion from private equity funds in the year to March 2012. In a market as large as India, that is still far from impressive, but incoming capital is expected to rise in the following year. If it does, it will represent a significant turnaround for a market that foreign private equity investors have largely shunned since the onset of the global financial crisis. Risks associated with Indian real estate investment are considerable, however. As one interviewee puts it, “It’s like China, but more complex in every possible way, without the infrastructure.” Bureaucracy, ubiquitous delays, land acquisition scandals, and an ongoing national protest movement targeting corruption have all contributed to waning foreign interest in Indian markets, with foreign direct investment and portfolio investment dropping markedly despite economic growth of about 8 percent in 2011.
To begin with, this research exposed a FDI puzzle between India and China through analyzing the current economic condition. Prime, Subrahmanyam and Lin (2011) stated, "Given their growth records, large markets, and reformed economic systems, both China and India appear to be equally likely candidates for foreign direct investment. Yet, China has received substantially more FDI" (p. 303).
The author of the article “Low-Skilled Immigrants and the Changing American Labor Market” writes, “…many of the occupations in which immigrants are concentrated are not expanding. Agricultural jobs of the type immigrants perform are expected to decline by 10 percent because of mechanization” (Low-Skilled Immigrants and the Changing American Labor Market). This is an example of another struggle that immigrants are facing because technology and modern day advances are taking away the need for employees. Computers now have the potential to do the same tasks as the employee therefore causing the increase in unemployment. The author also writes that “Operator, laborer, and fabricator jobs in which immigrants are most concentrated are expected to decline by anywhere from 10 percent in machine setter jobs to 20 percent in textile operator jobs.
A highly skilled workforce in a more productive economy increases the rate of return for businesses and companies who invest in the United States of America, which leads to more investment in the future and a dramatic increase in jobs.
Since UAE is a great layout to apply some of the stratification such as Bourdieu’s theory of Habitués and Weber’s the theory of Typology of classes, and Marx’s theory of class division based on economy, the productive system is significant and the deterministic to all other aspects in the society (Chan & Goldthorpe, 2007). I will use UAE citizens as a case study to see whether the economic powers are given and created to the UAE Citizen to expresses their economic powers through the economic opportunities (the instruments) or if the UAE citizens have a cultural influence into creating their economic identity segmentation as the way to distinguish themselves from the others.
His Highness Sheikh Zayed Bin Sultan Al Nahyan, founder of the United Arab Emirates, or UAE, stated, “The greatest use that can be made of wealth is to invest it in creating generations of educated and trained people.” From its conception, the United Arab Emirates was founded on the importance of education. Since it’s founding in 1971, the small country’s population has risen to over nine million people. This dramatic rise in population was a cause for the dramatic investment the countries government has put into its education system. In 1975, the rate of adult literacy was 54% among men and 31% among women, while today, literacy rates f...
... jobs. This scenario is worrisome due to the political implications of the Arab Spring and the rising dissent against the Jordanian regime from neglected towns and cities in the northern part of the country.
On the other hand, migration can provide some negative impacts. One of them is unemployment of native population. As it was said before, foreign-born are more profitable for employers; therefore they have bigger chance to receive the workplace than native people. From 1997 to 2006 the UK-b...
The UAE economic program is the second biggest in the GCC. Most oil depending GCC nation (91% of GDP in 1981) to the least (36% in 2005). Due to large number of retirees looking for tasks, The UAE government has designed particular tasks in different emirates to ease job discovering for everyone. These consist of power and petrochemical in Abu Dhabi, travel and leisure and solutions in Dubai, heavy industry in RAK.
People need money to purchase all kinds of goods and services they needed every day and sometimes, for goods or services they desire to own. To fulfill that, they have the essential need to earn money. In order to earn money, they must work in either in fields related to their interests or to their qualifications. However, people will meet different challenges during their jobs-hunting sessions, such as many candidates competing for a job vacancy; salaries offered are lower than expected salaries and economic crisis or down which causes unemployment. Unemployment is what we will be looking into in this report. Dwidedi (2010) stated that unemployment is defined as not much job vacancies are available to fulfill the amount of people who want to work and can work according to the current pay they can get for a job they chose to work as. There are four major types of unemployment: frictional, structural, cyclical and seasonal unemployment.
If yes, to what extent? Is there any significant relationship between FDI, domestic investment and the economic growth and development of the economy? If so, what is the nature of the relationship? This study therefore aims at providing answers to the above questions. b. MODEL SPECIFICATION
The United Arab Emirates is known for its fast development compared to the early times when the world did not know about it. The country’s rulers have been working hard to develop the country in many places such as in education and business environment. Sheikh Zayed bin Al Nahyan, may he rest in peace, was the previous ruler from his son Sheikh Khalifa bin Al Nahyan, who marked the beginning of a new era, the development of the UAE’s economy and trade, education etc. Till this day, Sheikh Khalifa bin Al Nahyan still continues the plans for the UAE to continue its development.
In this region, population growth rate is high, population under 25 years old represents a large share of the total (up to 40%) and the new labour force entering the market every year is huge (UNDP’s Arab Human Development Report 2002). This type of economy does not conform to complementary efforts unlike LMEs and CMEs which benefit from a complementary
Due to the dependence on non-internal markets, Singapore is more vulnerable to repercussions and actions of the global markets and as a result, the global recession had impacted unemployment rates heavily, which had resulted in a rise in unemployment. Putting that aside, Singapore is known to be among one of the highest employment ratings in the world. Another form of unemployment which is a challenge to Singapore is structural unemployment. Moving alongside Singapore’s speedily developing economy is its shift from being a labour intensive economy to a capital intensive one. This is inescapably met with the challenge of the substitutions of skills in the labour force of Singapore. For example, the recent shift into the biomedical and Research and Development (R&D) industries subject workers who can only work in the lower end of manufacturing industries tend to find themselves unemployed because the mass production work is usually outsourced to other economies that are developing. In order to solve this issue, the government of Singapore had invested a large sum in training and education, with and average of one in four citizens who were employed in 2010 to be degree holders, therefore allowing citizens of Singapore to remain relevant and
Despite the lower rate, employment issues are still issues in many countries. According to the education minister, roughly 20,000 school leavers are trying to find jobs. This number accounts for 5% of Brunei population. They aimed to reduce the number by 80% as high unemployment can lessen the people quality of life, slow economic growth and create a gap between the rich and poor. Higher number of registered jobseekers does not automatically indicate the rate of unemployment.