Saudi issues clarification on six-year expat visa limit

Saudi Arabia on Tuesday put an end to speculation that it is about to kick out all its expatriate workers after six years, clarifying that the decision applies to only those private sector firms that do not abide by the country’s job nationalization quotas.

A government official was reacting to statements on Monday by Saudi Labour Minister Adel Faqih, who said a new incentive programme for the private sector to recruit more Saudis includes limiting the stay of foreign workers to six years.

The minister said the programme would be implemented in June and would give four classifications to companies, including “excellent and green” for those who abide by Saudization quotas and “red and yellow” for non-compliant firms.

“What the Labor Minister meant by his statement was that the measure would be applied on those foreigners who work for companies in the yellow [non-compliant] category,” said Hattab Al-Anazi, official spokesman of the Labour Ministry.

Quoted by the Saudi Arab News daily, he said that companies in the yellow category that did not fulfil Saudization conditions should correct their status in order to get visas of their workers renewed.

He said visas for foreign workers in red category companies would not be renewed at all, irrespective of the years they have spent in the Kingdom.

“The new Nitaqat system allows renewal of iqamas (work visas) without any condition for expatriates who work in companies in the green and excellent category,” Al-Anazi said.

He noted that the new measure would not apply on house servants as their visas would be renewed without considering how many years they stayed in the country. “They are not at all linked with the Nitaqat system,” he said.

Expats fear other Gulf states may follow Saudi’s 6-year visa limit

A decision by Saudi Arabia to limit the stay of expatriate workers to six years appears to have triggered fears among foreigners residing in the region that such a move could also be enforced by other Gulf oil producers in line with a proposal discussed at the Gulf Cooperation Council Summit in 2008.

Nitaqat (limits), the new Saudi government programme to be enforced in June, compels the Gulf Kingdom’s private sector firms to recruit Saudis and providing incentives to companies which abide by the new rules. The programme will limit the stay of foreign workers, mainly unskilled, to six years while it will also ban new visas for non-compliant companies.
Saudi Labour Minister Adel Faqih did not provide many details of the new decision, but businessmen hope it would apply only to unskilled labour, estimated at around 3m in Saudi Arabia and 10m GCC-wide.
“This decision apparently targets a quantitative rather than a qualitative policy... in other words, if the decision is issued in this form, this means the Ministry of Labour is focusing on quantity not quality,” Khaled al Suleiman, a well-known Saudi economist told Al Arabiya television.
More than 18 million expatriates live in the six-nation GCC, remitting home tens of billions of dollars every year, seen by regional economists as drainage of the Gulf countries’ wealth.
The programme comes amidst reports that unemployment in Saudi Arabia is widening because of the private sector’s preference of the cheaper expatriate labour and the fact that the population is growing faster than the economy.
Faqih put the official unemployment rate in Saudi Arabia, the largest Arab economy, at around 10.5 per cent but noted female joblessness largely exceeds that rate, standing at nearly 26.6 per cent. Unemployment among Saudi high school graduates is also as high as 40 per cent.
He said nearly six million foreigners work in the Saudi private sector, accounting for around 90 per cent of the sector’s total workforce.
“We have nearly half a million unemployed Saudi in the country while around 8m expatriates live here…6m of them work in the private sector, transferring nearly SR100 billion every year,” he said.
Faqih is expected to face a storm of protests when he meets Saudi businessmen in the eastern region tonight in case the decision affects foreign labour across all skilled classes. The meeting will cover Saudization of jobs while the minister will explain the new programme, according to Abdul Rahman al Rashid, chairman of the chamber of commerce and industry in Saudi Arabia’s eastern region.
“The decision to limit the stay of expatriate workers to six years is not clear and needs further clarification as is the case with Nitaqat,” said Suleiman.
“Tackling the expatriate labour problem in Saudi Arabia in a bid to reduce unemployment among Saudis should be based on the experience and qualifications of the expatriate workers to be imported by the Kingdom.”
“Nitaqat will be an effective tool to eliminate malpractices in the labour market… We are not completely stopping visas for foreign workers but we want to find jobs for our people… Companies in the green zone will not have any problem while there is a plan to limit the stay of most expatriate labour to six years,” Faqih said.
Government data released early this year showed Saudi Arabia is suffering from very high jobless rate among young men as more than 43 per cent of citizens aged between 20 and 24 years are unemployed. The rate at the end of 2009 was higher than in 2008 despite an ongoing campaign to find jobs for the fast-growing nationals.
The report by the government statistics and information centre showed about 43.2 per cent of the Saudi males and females aged 20-24 years were unemployed at the end of 2009, nearly 20 per cent above the 2008 rate.
“This comes at a time when one million labour visas for foreign workers were issued last year,” the report said. “The private sector continued a drive to import foreign labour although nearly 111,000 Saudis were looking for jobs,” it said.
Saudi Arabia, which controls over a fifth of the world’s recoverable oil deposits, is suffering more from unemployment than other Gulf hydrocarbon producers given its large population and the slowdown in its economy in some years.
The government is now seeking help from the private sector to create jobs for Saudis. “The present situation requires strong cooperation and coordination between the government and the private sector to tackle the unemployment challenge as hundreds of thousands of Saudi continue to search for jobs,” Faqih said.
“Nitaqat is just one of 10 new programmes to be implemented in the coming stage… Our aim is to make Saudisation of jobs an advantage to companies.”
Suleiman, on the other hand, said he saw several ambiguous aspects of the new decision. “These include how the ministry will deal with housemaids and low-paid jobs in the construction sector, which are still shunned by the Saudis,” he said.
Suleiman said the Ministry of Labour has been issuing successive decisions because it has been under pressure to tackle unemployment. “Under such pressures, which are often highlighted by the Saudi media, the ministry appears to be looking for a way out by presenting such ideas.”
He warned against the repercussions of that decision on the Saudi private sector, which relies heavily on “cheaper” expatriate labour. He said job nationalization in the Saudi private sector would boost cost of labour and this in turn would increase the financial burden on national companies.
Suleiman also criticized the deadline for the implementation of Nitaqat, which requires national firms to start Saudization of jobs within three months. “These decisions will hurt the private sector because they should not be presented in such a random way,” he added.
Other analysts believe Faqih’s announcement of the six-year limit is intended to block the way for Saudi-based foreigners to demand political rights, including Saudi citizenship. But Suleiman believes such demands are not “in the pipeline” on the grounds that many expatriates have been residing in Saudi Arabia for more than 50 years and have not made such demands.
He noted that the idea of replacing the foreign labour with nationals was discussed by the GCC heads of state in Bahrain several years ago.
In Egypt, Minister of Manpower Ahmed Al Burghi said he had contacted his labour representatives in Riyadh and Jeddah and was told that they have not received any official notification about the new decision.
Saudi Arabia is home to around 1.5 million Egyptian workers, who could be sent home in case that decision was fully enforced.
The new programme will give four classifications to companies including “excellent and green” to those which adhere to job nationalization and “yellow and red” to firms which fail to employ enough Saudis.
Analysts described the programme as the most radical measure taken by the Saudi government to force its private sector establishments to employ more Saudis following the failure of previous procedures.
The government in the world’s dominant oil power has not yet published details of the programme but its labour minister said it includes “generous” incentives to compliant companies and punitive measures against non-abiding firms.
“Companies which abide by Nitaqat will be moved to the green zone, which will allow them to receive many benefits, including visas and others,” Faqih told businessmen this week. “It will also allow them to get skilled labour from firms in the red zone.”

ID registration procedures online in 7 languages

Expatriates wondering about the procedures to register in the UAE national identity can now see them online in seven languages that involve the bulk of the country’s eight million people, according to the ID issuers.

The Emirates Identity Authority (EIDA) said it had just introduced these procedures on its website in Arabic, English, French, Persian, Chinese, Urdu and Hindi so all residents in the country can have access to them before heading for registration offices with the required documents.

“This move is within a number of new measures taken by the Authority to upgrade services and ensure that all residents are registered,” said Abdul Aziz Al-Maamari, marketing director in EIDA.

More than three million Emiratis and expatriates based in the UAE have been registered in the national identity, an ambitious project launched by the country a few years ago to create an accurate demographic data base.

EIDA had set a registration deadline at the end of June but it is expected to be extended again as millions others have not registered yet.

staff from Free zone can't move courts directly

Labour disputes in free zones should be first reported to the free zone authorities before moving the courts. In the event the free zone authority fails to reach a satisfactory settlement of the dispute, the case should then be referred to the Labour Court.

The Dubai Court of Cassation established the new legal principle while considering the appeal filed by an employee working in Jebel Ali Free Zone before the Labour Court to demanding his company pay him of Dh558,000 in dues.

The employee (plaintiff) said he had joined the company as Managing Director on Dh35,000 monthly salary. On his return from annual leave he was surprised to learn that a report of him having 'escaped' was issued by the company. He alleges the company took such a step to avoid paying him teh dues.

He said the dues include salary until the end of his contract which is about Dh345,000; compensation for unfair dismissal which is about Dh105,000; annual leave allowance Dh7,000 for the last two years; Dh73,000 as service bonus; and air ticket alowance Dh1,500.

The Court of First Instance refused to accept the case because he failed to present his complaint to Jebel Ali Free zone Authority first.

He then moved the Court of Appeal which again rejected the appeal and upheld the appellant.

But the employee was not satisfied with the verdict and moved the Court of Cassation which issued the new principles mentioned above.

The Court of Cassation said its ruling: “The legislator in the decree of establishing the authority of Jebel Ali Free Zone and its implementing regulations gave authority to the free zone of Jebel Ali (power and competence) to receive complaints and requests for workers and companies and institutions working in the geographical scope of the free zone of Jebel Ali of any legal disputes."

The court added also it has given the power to settle the dispute amicably, and in case the authority failed to reach a settlement, it is entitled to take the decision it deems appropriate, such as refer the case to the competent court.

The new federal law concerning the protection of consumers will be enforced in the third quarter

The UAE is on the verge of enforcing tough penalties involving fines of up to Dh1 million against dealers trying to manipulate the market by raising prices of consumer products without prior official permission.

The Ministry of Economy said the new regulations, which have been approved by the federal cabinet, would be enforced in the third quarter of this year and warned traders against any manipulation attempts.

In a statement carried by local Arabic newspapers, the ministry said it would not allow dealers to manipulate or control consumers and ruled out any move by the higher committee for the consumer’s protection to approve requests by suppliers to raise the prices of some products this year.

The ministry said its anti-manipulation actions had ensured market stability, adding that prices of consumer products in the UAE are the lowest in the Gulf despite the absence of subsidies enforced in other Gulf nations.

“The new federal law concerning the protection of consumers will be enforced in the third quarter…it involves increasing the penalty ceiling to Dh1 million after it was endorsed by the cabinet,” economy minister Sultan Al Mansouri said.

“The UAE will not allow traders to manipulate consumers at will….the government will continue to intervene in consumer prices to ensure maximum protection for the consumers in the country.”

Mansouri said the ministry’s higher committee for consumer’s protection is considered “the frontline” in the defence of consumers, adding that it would not approve any new price increases without “strong and convincing reasons.”

“The committee normally carries out a comprehensive study into any request for prices increases…this study involves the reasons for this increase, the price level in the country of origin, prices in neighbouring countries and the profit margin…I don’t think we will approve any price rise this year,” he said.

According to Emirat Al Youm newspaper, the new law increases the maximum penalty against violating dealers to Dh1 million from Dh100,000 and the minimum fine to Dh100,000 from Dh10,000.

'Thousands' of visa scams uncovered by Interior Ministry

The Ministry of Labour has unearthed ‘thousands’ of cases of visa fraud by owners of certain establishments applying for residence visas for individuals without labour cards, senior ministry officials have said.

According to Humaid bin Deemas, Undersecretary of the Ministry of Labour, three such cases have been unearthed during the past two weeks. He said the owner of a facility which has only 30 work permits (labour visas) tried to issue 130 visas from the Residency and Foreign Affairs Department.
“The electronic link between the ministries of Labor and Interior detects and prevents these cases of forgery, and will allow us to say ‘goodbye’ to the visa traders,” he said.
Bin Deemas made the announcement on the sidelines of an event to mark the conclusion of the first phase of the electronic link between the two ministries.
Colonel Saeed Salem Al Shamsi, General Manager of the Residency & Foreign Affairs Department at the Ministry of Interior, said: “The ministry discovered thousands of cases of fraud that were carried out by the owners of facilities in which they requested residence visas for persons who do not have labour cards.”
He added that the linking will prevent all such fraud and will also identify companies that are violating the laws of residence and labour by recruiting absconding workers.
Bin Deemas explained that the electronic link allows a company owner to send request for and receive visas electronically.
It also allows cancellation of the labor card and the facility to deport the same day – provided that the owner of the facility has electronic signature card, the worker shouldn’t have any fines, and also that the employer would have paid all the dues of the worker, said Bin Deemas.
He added that with the completion of the second phase of the project which is in implementation currently, the reports of absconding workers will be included in the database, helping authorities in establishing if a particular is still within the UAE or has left the country.
It will also allow the Ministry of the Interior to control any fraud carried out by the owner of an establishment with so-called visas traders.
Bin Deemas pointed out that some employers were applying false documents to the Residency & Foreign Affairs Department declaring abolition of work permits to workers they already have and at the same time applying for visas for other people.
He noted that the electronic link between the ministries of Labour and the Interior will make it impossible to pass any of these cases.
The electronic link will also save time and effort for applicants and reduce the number of applicants at the ministries of Labour and the Interior.

Common driving licence syatem for all GCC

The GCC countries have agreed to a common driving licence system at a conference that took place Sunday in Abu Dhabi.

The three-day conference of directors of traffic departments from the GCC countries is being held to address common challenges, policies and procedures related to traffic issues.

"The UAE presented a proposal for a unified driving licence system. An agreement was reached to implement the suggestion of having a common driving licence for vehicles, including motorcycles, construction vehicles and private cars," Gaith Al Za'abi, director-general of traffic coordination at the Ministry of Interior, said.

"Further discussions will address other types of vehicles, including age and other relevant issues," Al Za'abi added.

The conference will also talk about the possibility of implementing a suggestion made by Oman for a unified form for driving licences containing sufficient background and security information to minimise fraud. "The agreed to procedures will be sent to the ministries of interior for a final approval," he said.

The UAE has also presented a proposal for an electronic web service or an electronic gate that links traffic data across the GCC countries.

"Some 70 per cent of the traffic exchange data among the GCC countries is related to fines. The e-gate will make this data exchange easier and accessible to the public. GCC residents can check online and pay traffic fines committed in any other country," Al Za'abi said.

Success rate

The directors agreed to hold the "GCC Traffic Week" at the same time yearly. They also assessed the success rate of previous traffic campaigns and agreed to maintain the successful ones. In the UAE the Emirates ID will soon be linked to the traffic department as well as the immigration and naturalisation department.

"With this linkage renewing residency means having to pay all outstanding fines or vehicle related fees such as registration, insurance, renting etc," Brigadier Hussain Al Harthy, director of traffic and patrols at Abu Dhabi Police, said.

Enforcing the speed limit helped reduce traffic accidents, according to Al Harthy. "Our procedures have helped reduce fatalities to 10 per 100,000 residents," Al Harthy said.

Worker wins damages against firm

Company ordered to pay employee Dh111,000 for lost job.

An Abu Dhabi court of cassation ordered a local company to pay Dh111,000 in damages for an employee after it failed to respect its work offer for him, resulting in the loss of his previous job, a newspaper reported on Sunday.

The worker told court that he had resigned from his job at another company after receiving a job offer from the new employers, who also committed to issuing him a new visa and a labour card, Emirat Alyoum Arabic language daily said.

After he quit his first job and cancelled his visa, he was told by the new company that the offer to start his new job in October 2008 had been cancelled because of the global financial crisis, the paper said.

His lawyer told court that the company’s action resulted in the loss of his client’s job and his health insurance, adding that this has had adverse social and psychological effects on him.

The court upheld previous sentences by two courts and dismissed argument by the company’s lawyers that the case should be referred to the labour court.

“The court also said that it is not compelled to consider a letter without evidence from the company that it had taken this measure because of the difficult economic conditions at that time,” the paper said.

UAE cancels up to 1m work permits a year: official

New system linking Labour and Interior ministries to help firms save time and money

The UAE cancels up to 1 million work permits every year, a senior official of the country’s Ministry of Labour (MoL) revealed last week.
At a press conference in Dubai last week, Humaid bin Deemas, Assistant Undersecretary for Labour Affairs at the MoL, disclosed that around 800,000 to 1 million permits are cancelled every year and that a new system, which provides a unified platform to process visa and labour-related issues is in place now, helping employers save time and money.
The project to electronically link the MoL with the Ministry of Interior (MoI) has concluded, providing a unified platform to process visa and labour related issues, it was announced during the press conference.
The linkage has created a joint database for both the ministries, which will allow them to access each other’s files and information, as well as process and cancel visas electronically. The new system will also save employers some headache as they won’t have to fill two separate forms at both the ministries to apply for a labour permit, it was announced.
The new system requires applicant to file one form at MoL, which will then send it electronically to the MoI and process the documents.
The announcement was made during a press conference held in the Ministry of Labour in Dubai in the presence of Humaid bin Deemas, Assistant Undersecretary for Labour Affairs, and Colonel Saeed Salem Al Shamsi, Director-General of Residency and Foreign Affairs department of MoI, and Colonel Bakhit Saeed Al Suwaidi, Director Office of the Assistant Undersecretary of Residency and Foreign Affairs, and Saif Al Suwaidi, general coordinator of the project the MoL.
MoL has confirmed that the new system has undergone testing through a pilot project last November and has successfully issued 317,137 work permits. While, the issuance process has already started under the new system, the cancellation would be launched only in July.
Once operational, the system will allow cancellation of labour cards from any centre in the UAE or even at the airports, following payment of all fines due by the applicant.
The E-link will also require all the firms to have electronic signature card, work on which is currently under process.
Under a later phase of the project it would be mandatory for employers to have electronic signature cards, failure to have which would stall all the files of the applicants.
There are currently 140,000 firms who already have e-signature card and those who do not have will be given a grace period to be announced soon.

Salary increment for Dubai government employees

Mohammed's order reflects his interest in human resources as a top priority of Dubai government

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE in his capacity as Ruler of Dubai, has ordered the payment of annual performance-based increment for employees of the Government of Dubai for last year.

The said increment covers the past year - 2010, according to a press release by the Dubai Government Media Office (DGMO).

"His Highness' order reflects his interest in human resources as one of the top priorities of the government. He further underlines the awarding of sincere efforts backing excellence adopted by the Government of Dubai to advance the performance of its departments to the highest levels," the release added.

Last year's performance results showed a high level of maturity, flexibility and resilience to domestic as well as global changes while keeping high performance, according to the release.

Mohammed attends Rashid Awards for Academic Excellence

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, attended the Rashid Awards for Academic Excellence, organised by the Dubai Cultural and Scientific Association on Wednesday afternoon.

Also present at the ceremony were Sheikh Saeed bin Maktoum bin Juma Al Maktoum, Cabinet Affairs Minister Mohammed Abdullah Al Gergawi, Commander General of Dubai Police Lt General Dahi Khalfan Tamim, Director of Dubai Ruler's Office Lt General Musabbah Rashid Al Fattan, Dubai Attorney General Essam Issa Al Humaidan, dignitaries, senior officials and heads of cultural and educational institutions in the country.

Mohammed orders monthly payment for national fishermen

The order of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai - Decree No. 4 of 2011 regulating the monthly salaries of national fishermen in the emirate of Dubai - has been implemented.

The chairman of the Dubai Fishermen's Cooperative Association Brigadier Mohammed Saeed Al Marri thanked Sheikh Mohammed for his continuous support for national fishermen in Dubai.

The new rules stipulate that benefits will be restricted to UAE citizens who have been members of the Dubai Fishermen's Cooperative Association for more than 15 years, with the added condition that they are not currently receiving a salary or pension from the local or federal government.

As per Article IV of the decree, fishermen entitled to benefits must own a boat and have registered it with the relevant authorities prior to August 1st, 2008.

UAE Labour Law on gratuity and severance pay of employees

Limited contract:

According to UAE Labour Law, you are entitled to 21 days salary for every year of employment less than 5 years, and 30 days salary for each year of employment over 5 years, up to a maximum of 2 years’ salary. Limited contract holders shorter than 1 year not entitled for gratuity. If the employer dismissed you and revoked the contract without the reasons provided in the article (120),they shall compensate the worker by a pay of (3) months or the period remained from the contract , whichever is shorter … unless otherwise provided by the contract

Unlimited or indefinite contract holders

With  notice period specified in UAE Labour law (usually 30 days) then the amount is according to the following:

Employed for less than 1 year - no gratuity

Employed between 1-3 years - 7 days for each year of employment (1/3 of the limited contract amount)

Employed between 3-5 years - 14 days for each year of employment (2/3 of the limited contract amount)

If you employed longer than 5 years - 21 days for each year up to 5 years, and 30 days for each year after 5 years (same as for limited contract holders). Maximum limit is of 2 years’ worth of salary. 

Unless the employer has not fulfilled their obligations according to the UAE Labour Law, or the employer has assaulted the employee (Article 121 conditions for permission to leave employment without notice). You might have to file a case with the Ministry of Labour in the UAE to claim your gratuity in this case.

Gratuity is calculated on base salary only, any additional allowances are ignored. Employees who are entitled to a gratuity will have it calculated pro-rata for part-years of employment. It is common for employees in the UAE to be on a limited contract which is renewed repeatedly after completion of the fixed term. The gratuity applicable in this case should be that for a limited contract. But check carefully what your contract says.

If a contract specifies a possible notice period for terminating before completion, then it is still a limited contract and you might not be entitled to any gratuity if you do not complete the contract, even if you give the correct notice as specified in the contract. However, such contracts do usually include a clause to detail what gratuity will be paid in those circumstances, and those clauses should have legal validity.

Being required to give a period of notice of renewal or non-renewal of a fixed term contract does not make it an unlimited contract. It is still a limited contract, and the gratuity calculations for a limited contract should still apply. If an employer claims otherwise, contact the Ministry of Labour to at least ask for clarification, and possibly file a complaint.

Locals to get 3-7% and expats 5% salary hike

Emiratis will get seven per cent while expatriates will receive five per cent salary hike based on their outstanding performance under the recently-announced increment for Dubai government employees, a senior official said.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE in his capacity as Ruler of Dubai, on Wednesday ordered the payment of annual performance-based increment for employees of the Government of Dubai for last year.

Amal Bin Adi, Director-General of the Human Resources Department of Dubai Government, told 'Emarat Al Youm' that increment will be given on basic salary.

She said those Emiratis whose performances just meets the expectations will get three per cent salary hike of their basic salary.

The Human Resources Department also emphasised that those employees who have completed six months in the job and those who are on duty and not resigned from the work will qualify for the increment.

“The increment will be given to employees of 42 departments and institutions of the Dubai government under the provisions of the human resources law of the Government of Dubai No. 27 of 2006, as amended and applied performance management system to the staff of the Government of Dubai,” she said.
Employees who completed six months in the job and those on duty and not resigned will qualify for the increment

Visa, ID to be linked in Ajman from June 1

Renewal or issuance of residence permits would be linked directly with ID card registration in Ajman from the June 1, the Emirates Identity Authority (EIDA) has announced.

The Gulf Today quoted a senior EIDA official making a statement to this effect.

In a statement, Abdul Aziz Al Maamari, director of Public Relations and Marketing, Eida, said this would mark the fifth stage of the operation in the Emirate.

The issuance of ID card would be subject to completing preventive medicine procedures, and the residence visas would be issued only if the applicant submits the ID registration documents are submitted along with other regular documents.

Al Maamari clarified that the registration receipt with the ID seal will be one of the main documents required by Ajman residents to obtain or renew residency permits.

For those residents whose permits will be issued or renewed in Ajman and who want to obtain an ID card, the official said that they should go to an authorised typing office in the Emirate, the customers will then need to go to the Preventive Medicine Centre in Ajman for medical examination before heading directly to the Eida’s Ajman Registration Centre.

Eida has already started linking ID card registration with residence issuance or renewal procedures through registration centres annexed or close to preventive medicine centers in UAQ, Fujairah, RAK, Dibba Al Hisn, Al Dhaid and the Western Region.

Resident Visa for your Parents - UAE Rules

Criteria for sponsering

UAE expatriates, holding valid resident visas having a minimum salary of AED 6,000 with accommodation or AED 7,000 without accommodation can get one year renewable resident visas for their parents or parents-in-law.

As per new regulations, you have to sponsor both your mother and father together and show proof that you are their sole provider and that there is no one to take care of them in your home country. However, if your parents are divorced or one is deceased, you should carry documentary proof, when visiting DNRD to obtain the entry permit visa, which is the first stage before you can apply for a residence visa. You also need to obtain a medical insurance policy for each parent with minimum coverage of AED 600 per year.

Documents required for entry visa

• Typed application form

• Original passport of sponsor

• Passport copy of parent/s & 1 photo

• Proof of relationship from your embassy/consulate attesting both relationship and that you are sole provider for your parent/s

• Copy of job contract for the sponsor or salary certificate from employer.

A new requirement is submission of DEWA bill and your tenancy contract showing you have adequate space in your house for your parents (minimum 2 bedroom apartment). You need to get your tenancy contract stamped by the Land Department, certifying it is minimum 2 bedroom. In case your tenancy contract does not mention that you have at least 2 bedrooms, then you need to get an affidavit from your landlord and submit this as well.

Procedure:

• Take the documents and go to General Directorate of Residency and Foreigners Affairs - Dubai. Submit along with a letter from your side appealing on humanitarian grounds for entry visa for your parent/s. Enclose copies of all above documents along with your contact numbers. The Approval Committee will either confirm or reject your application within two weeks. If approved, go to next step.

• Have a registered typist complete the form after paying the fees.

• Go to the residency section of DNRD and hand in the documents.

• Entry Permit will be sent by Empost usually within 48 hours, or if you have applied for urgent visa, then you should receive it from the counter in a few minutes.

Fees:

- AED 5,000 refundable deposit (keep receipt safely for renewal or reimbursement, as this is paid back only when the visa is cancelled or in case your parent dies)

- AED 110 application fee + typing centre fee (or pay AED 100 more for urgent application)

Convert entry visa to residence visa for parents

Once your parents enter the country with the entry visa, you must convert it to a residency visa no later than 60 days from the date of entry.

Documents required for residence visa

• Application form & 3 photos of parent

• Original passport of parent/s and sponsor

• Original entry permit

• Health card or medical insurance policy for parent/s

• Refundable deposit receipt

• Original job contract or salary certificate of the sponsor

Fees:

- AED 110 residency fees each year + typing centre fee

- AED 100 urgent application (optional)

- AED 10 Empost fees

Procedure:

• Do a health check up and obtain a medical card.

• Take the documents and go to the General Directorate of Residency and Foreigners Affairs - Dubai.

• Have one of the typists there complete the form for you after paying the fees.

• Go to the residency section and hand in the documents.

• The passport/s with the residency visa stamp will be sent to you through Empost.

Kuwait Visa Rules

Obtaining Residence in Kuwait

To live permanently in Kuwait, expatriates other than GCC citizens must have iqama, ie a residence permit. A person discovered without a valid iqama which are known colloquially by the article numbers in the immigration regulations. The three main types are work visas, domestic and dependent visas, all of which require a sponsor. An expatriate may however sponsor his own residence, with or without being permitted to work, provided he has lived in Kuwait for many years and has substantial financial means. (Kuwait has banned nationals from Afghanistan, Iran, Iraq, Pakistan and Syria from entering the country.The ban includes suspending all tourism, visit and trade visas as well as visas sponsored by spouses, immigration sources said, quoted by Kuwaiti media on Saturday May 21st 2011)

Work Permits, No-objection Certs & Work Visas

Work Visas are iqamas granted under articles 17 (For Public Sector Employees) and 18 (Private Sector Employees) of the immigration regulations. To obtain residence on a work visa an offer of employment must first be accepted. The Kuwaiti sponsoring employer then applies for a work permit from the Ministry of Social Affairs & Labour, for which the sponsor needs a copy of the employee's passport showing sector employer must then ob-tain a no-objection certificate (NOC) from the General Admin-istration of Criminal Investigation at the Ministry of interior which he dose by submitting the employee's personal details.

If the employee is living in a country that has a Kuwaiti Embassy the employer will send him a copy of the work permit which he must take to the Embassy. Which will also have received a copy through the Ministry of Foreign Affairs, for endorsement. The employee must then apply for an entry visa for Kuwait, using the endorsed work permit. Those sponsored by private sector companies will require their NOCs and a copy of the employer's authorised signatory as registered for business purposes. An applicant is also required to provide a medical certificate, obtained from a clinic recognised by the Kuwait Embassy, stating that their general state of health is good and that they are free of specific epidemic diseases. A good conduct certificate, issued by the police in the last place of residence, may be required for some nationalities.

If the employee is living in a country that has no Kuwait Embassy then the sponsore will submit the work permit and NOC to the Ministry of the Interior to obtain the entry visa. If an employee is on a visit visa to Kuwait when he accept employment, then, once the work permit and NOC are ready, he must leave Kuwait and return on the entry visa the sponsor obtain for him. For Westerners, a short round trip to Bahrain by air for the day may suffice.

However most nationalities are obliged to return to their native country in order to undergo medical tests and have them endorsed at the Kuwait Embassy there.

Once he has entered Kuwait, the Employee must undergo local medical tests and obtain a fingerprint certificate before he can process his residence visa.

Medical Tests

The medical tests are taken at the ports & Borders Health Division, Gamal Abdul Nasser Street, in Shuwaikh, just west of KISR but befor the chest Hospital is reached. Requirements are passport, copy of NOC, a single photography and KD 10 revenue stamp. Revenue Stamps are available from post office, or from private traders out-side the test area who charge a small premium over the nominal value of the stamp.

To take the test, a pink card must be obtained from a reception window. There is no system of appointments and most people must queue for the various procedures. These include a chest x-ray and blood tests for serious infectious diseases, such as HIV(AIDS), TB, hepatitis B&C, typhoid and malaria. A meningitis vaccination is also given. It takes about a week for the results, which are givien in the form Ministry of public Health, to come through. Persons found to be infected with epidemic diseases are deported.

Fingerprinting & Security Clearance

There are four fingerprinting departments where expatriates can have their fingerprints department and obtain security clearance. These are located in Khaed Ibn Al waleed Street, Sharq. Near the toy Shops (for persons living in the city governments) Al Gazali Street, Farwaniya (for persons living in Hawalli and Farwaniya governments), Ahmadi and Jahra.

To have fingerprints registered, an employee's passport, copy passport, four photographs and a letter from the Ministry of Social Affairs & Labour are required. An application form must be completed in Arabic and there are freelance typists around who will do so for a small fee. The fingerprinting process is a bit messy, but plenty of tissues and cleaning fluid are provided. It takes about a week for the fingerprints to be proceessed and the security clearence certificate to be issued by the Criminal Evidence Depatment of the Ministry of the Inetrior. The certificate is picked up from the same place as the fingerprints were taken.

Application for Residence

The actul application for an iqama is made a the Immigrtion and passport Department of the ministry of the Interior in Shuwaikh (the Jawazaat or passport office) just off the Airport road near the Q8 compound between the 3rd and 4th Ring Roads. First time applicants for residence must submit the following documents in the form of both originals and photocopies:

*declaration on the prescribed *work permit * NOC *passport * security clearence(fingerprint)certificate

Four passport size photography are also required. A maximaum of five years residence may be granted. The fee is KD 10 per year. If the sponsor is a government organisation then, by law, the employee must bear the cost. If the sponsor is a private company the cost is a matter of negotiation between the sponsors and the employee.

Renewing Residence

After the intial residence has expired it can be renewed, provided the expatriate intends to continue under the same sponsor. Renewal is a simple matter. Applications are made at the Jawazaat in Shuwaikh and the process should be started at least two weeks before the current residence expires. The new residence runs from the date it is stamped in the passport.

Medical test are not required on renewal. However the employee’s work permit must first be renewed with the Ministry of Social Affairs & Labour. The applicatin for renewal must be supported by:

· The employee’s work permit

· The renewed work permit

· A copy of the sponsor’s signature as required for business purposes

Normally the sponsors or his official mandoub will attend at the jawazat to renew the employee’s iqama. Where the employee does so himself, he must a letter from his sponsors authorising him to do so.

Dependent Visas

Once he has obtained his own residency, a male employee may sponsor his wife and children to live with him in Kuwait, provided he is earning at least KD 450 a month where he is on a 17-visa or at least KD 650 where he is on an 18-visa. If both sponsors are working in Kuwait, they are usually allowed to sponsor their children provided their combined salaries exceed about KD 350 per month.

A working wife cannot sponsor her husband as a dependent. Sons over 21 years cannot be sponsored as dependents, though adult daughters and parents may. Dependent family member may not work without transferring to a work visa under Kuwaiti sponsorship.

An entry visa for a dependent is obtained at the jawazaat in Shuwaikh. An application form must be typed in Arabic and bilingual typists are available for as charge of 500 files. The following supporting documents are required:

· Sponsor’s salary certificate

· Copy of the sponsor’s civil ID

· Copy of the dependent’s passport

· Authenticated marriage certificate or child’s birth certificate

The marriage certificate and child’s birth certificate must be authenticated by the sponsor’s embassy and certificate by the Kuwait Ministry of foreign Affairs.

Once they have entered the country the formalities for a dependent’s iqama are similar to those for a work visa. The dependent must be medically tested and fingerprinted. The photographs and documents required are the same as shown above except for the work permit. The sponsor’s declaration is an undertaking by the family supporter that he will maintain the dependent.

For expatriate sponsors working in the private sector, the first year dependent residence fees for a wife and the first two children are KD 100 a person and KD 200 each for subsequent children. For public sector employees, first year fees for a wife and the first two children are KD 10 a person and KD 100 each for subsequent children. Renewal fees in all cases are KD 10 a year per person. However the fee for a dependent parent is KD 200 a year.

New Born Child

When a baby is born to expatriate in Kuwait, the parents must obtain a dependent iqama for the child. There is no minimum salary requirement and the father of child born in Kuwait can sponsor his infant’s residence irrespective of his salary level.

But first the parents must obtain an official birth certificate for the child. To do so, a notification of the birth, obtained from the hospital where the child was born, The hospital will provide the address. Additional documents required to obtain the birth certificate include:

Application form duly completed, photocopies of parent’s passport civil Ids, and authenticated marriage contract. When the notification is being submitted at the registry, the parents will be asked to write down the proposed first name of the child. For expatriates who do not speak Arabic the name will be written phonetically in Arabic. The birth certificates are usually ready to be picked up at the registry after about a week. The fee is KD 10.

To obtain residence the baby’s name must first be added to the father’s passport or a separate passport must be obtained for the infant. Many expatriates prefer to obtain a separate passport for the child as, in many cases, to have the child added, the parent’s passport must be changed and the parent must then go though the formalities of having his residence transferred to the new passport. In addition, a child with his own passport can travel without his parent should this ever be necessary. To obtain a passport for the child, different rules, but most non-Arabic embassies require a certified translation of the child’s birth certificate while some require the certificate to be authenticated by the Ministry of foreign Affairs in Kuwait.

Once a passport has been procured or the child has been added to its father’s passport, the procedures for obtaining the child’s residence are the same as for any dependent. An infant born in Kuwait however is not required to undergo include the originals and copies of the father’s passport, the civil IDs of both parents, marriage certificate, work permit and letter of employment indicating salary. The application for the birth to avoid fine of KD 200.

Where the father works in the private sector, the administrative fee for the new-born intant is KD 100 in the first year for the first and second child, and KD 200 in the first year for the third and subsequent children, But if the father works in the public sector, there is no charge in the first year for the first three children, while the charge for each subse-quent child is KD 100 in the first year. The actual residence fee is KD 10 a year.

Parents on domestic servant visas cannot keep their child in Kuwait and must obtain an exit visa for the infant from the Ministry of the Interior, for which the following documents are required: passports and civil IDs of both parent’s, marriage contact translated into Arabic, and the child’s birth certificate. There is no fee for the exit visa but, to avoid a fine of KD 200, formalities must be completed within 60 days of the birth.

Domestic Servant’s Visa

Resident expatriates may sponsor one full-time servant to care for their household. A male expatiates must have his wife must be living with him if the servant is a female. The age limits for maids are 20 to 50 years. Family members may not be sponsored on servant’s visas.

The sponsor is not required to have a minimum salary and, provided both husband and wife are working and the family includes children, expatriate families are usually allowed to bring in a maid. The decision rests with immigration official who take into account the size of the family’s home, its monthly income and whether the family really need a maid.

An entry visa for a servant is obtained from the jawazaat in Shuwaikh. An application form must be typed in Arabic and bilingual typists are available for a charge of 500 fils. The following supporting documents are needed:

· Salary certificates of sponsor and his wife

· Copy of house rental agreement

· Copy of sponsor’s and wife’s passport

· Proof of ages of children (eg, copy of local birth certificates or passport)

· Copy of the sponsor’s and wife’s civil ID

· Copy of the servant’s passport plus eight passport sized photography

· Copy of the work contract for the servant

To travel to Kuwait, a servant may need to undergo certain formalities in his or her home country. These can be ascertained from the appropriate embassy.

Once he or she has entered the country the formalities fop a servant’s resident visa are photographs and documents needed are the same as for a work visa except for the work permit. The residence fee is KD 10 a year but there is also a charge of KD 200 in the first year.

New Passports

If an Expatriate’s passport expires before his residence visa runs out then his iqama can be transferred to the new passport. The transfer fee is KD 10. The new passport needs to be presented at the jawazat in Shuwaikh, accompanied by a typed application (500fils as described above) and the following supporting documents:

· Copies of all documents used to obtain the original residence

· Letter from sponsor

· Old passport

Four photographs are also required. Provided everything is in order the iqama may be stamped in the new passport there and then.

Where the validity of his passport has been expanded his residence is still valid an expatriate need do nothing.

Transferring to Another sponsor

Expatriates come to Kuwait to work and at the end of their contracts are expected to return to their native lands rather than remain in Kuwait. But in many cases an expatriate may transfer his residence to a new sponsor provided the current sponsor agrees.

The rules governing the right to transfer is complex and variable. Generally speaking, there are few restrictions on transfers between sponsors within the public sector and the transfer of domestic servants between different sponsors. A domestic servant however may not normally transfer to a sponsor in the private sector unless the transfer is to an establishment owned by his or her current sponsor. But transfer between the government sector (visa-17) and the private sector (visa-18), and vice veisa, are not restricted. While a dependent, such as a wife wishing to work, must have been resident for five years before she can transfer to the private sector (18-visa), though transfers from the private sector to dependent status are unrestricted.

Within the private sector, transfer to a new job as a teacher and not to a sponsor in industry.

And a person on a project visa, ie someone hired by a private firm for a government project, may not normally transfer after the project is completed but must instead leave Kuwait.

Under regulations issued in August 1999 by the Ministry of Social Affairs & Labour (MSA&L), expatriates in the private sector may transfer o another sponsor in the private sector only once every two years. Even if dismissed from their job. This rule, which relates only to persons already on an (18-visa), is subject to several exceptions and restrictions:

· Holders of university degrees may transfer as often as they wish. However a degree certificate needs to be attested by the Foreign Ministry in Kuwait, which means that it must first be attested by the holder’s local embassy or by the Kuwait embassy in holders.

· Persons working in establishments that are dissolved, liquidated, merged with others, sold or transferred, may transfer no matter how short a time they have been with their sponsors.

· Husband and children of Kuwait women may transfer as often as they wish.

· Owners, partners and shareholders in local companies may transfer as often as they wish.

· When a government project being undertaken by a private sector firm is given to another contractor or is cancelled or comes to an end, expatriates on project visas may transfer to the company taking over the oproject or to one undertaking a similar project.

· Expatriate in the transport and construction industries may only transfer, every two years, to sponsors within the same industry.

Transfer Procedures

But even if an expatriate is allowed to change his sponsor under the rules he must, in all cases, even if his contract has expired, have the consent of his current sponsor. This consent is evidenced by the sponsor’s signature on a letter of release In addition, to effect the transfer, a copy of the current sponsor’s commercial license is required.

Formalities to obtain the new iqama are similar to those for neither obtaining residence in the first place, though a medical test in nor necessary. The fee for the new work permit is KD 2, and the iqama costs the usual KD 10 a year though there is no rebate for any unexpired years of the old residence. In some cases a transfer fee, payable to the MSA&L, of KD 10 is charged.

Other Residence Visas

Besides work, dependent and domestic iqamas, expatriates may obtain other kids of residence, such as a student residence, or a three-month residence for medical treatment.

Temporary Residence

Expatriate may be granted temporary residence under article 14 in special cases where they do not need or cannot get ordinary residence. This allows for a stay for up to a year, Formerly only given to visitors with personal emergencies, such as illness, Western businessmen seem to obtain temporary residence without difficulty. Recently the Immigration Department has been granting two or three-month temporary residence to the immeigratiate relatives (Father, Mother, Sister, but not Brothers) of residents, whose visit visa have expired. Temporary residence may also be given to expatriates who have resigned but who need to remain in Kuwait for some time in order to settle their financial affairs or a court case. The cost is KD 10 A temporary residence is cancelled if the holder leaves the country.

Self-Sponsorship

Expatriates who have spent long years in Kuwait may sponsor themselves under article 24 of the regulations and obtain a residence for two to five years, provided they can support themselves financially and can produce a certificate of good conduct. This form of residence can be renewed upon expiry. Self-sponsored expatriates may sponsor their wives and children and are entitled to run their own business.

Exit Permits

Expatriate employees of ministries and some other government institutions must obtain exit permits before they can leave Kuwait. Other expatriate do not require exit visas.

Absence Abroad

A residence visa iscancelled if the holder is absent aboard for a continuous period of six months. The only exceptions are for those who:

· Are studying aboard

· Are receiving necessary treatment aboard, or

· Are required by virtue of their work to be aboard,

Provided permission in all three cases is obtained before leaving Kuwait.

For a student studying overseas, application for permission is made to the immigration office in the applicant’s residential area. An official letter from the child’s college stating that he or she is studying there, authenticated by the Kuwait embassy in the for country and attested by the Ministry of Foreign Affairs in Kuwait is required. A typist outside the immigration office will type a letter of application in Arabic, which must state the reasons for the application, for 500fils. Other documents needed include copies of passport and civil ID plus four passport-sized photographs. The permission is given in the form of letter.

This letter must be shown to the immigration officer both on departure from Kuwait and on return. The permission is valid for the term of the holder’s residence. It can be used for several entries and exits, and does not need to be renewed until residence is renewed.

Kwait bans visas to Afghani, Irani, Iraqi, Pakistani and Syrians

Kuwait has banned nationals from Afghanistan, Iran, Iraq, Pakistan and Syria from entering the country.The ban includes suspending all tourism, visit and trade visas as well as visas sponsored by spouses, immigration sources said, quoted by Kuwaiti media on Saturday and as reported by 'Gulf News'.

The officials attributed the blanket visa ban to the “difficult security conditions in the five countries” and to “the remarkably increasing tendency of nationals from the five countries to apply for visas to bring in relatives who faced or could face arrest by the local authorities to Kuwait.”

The sources said the authorities insisted that no exception in the visa application would be tolerated, but assed that the ban was temporary and would be lifted after the security situation stabilised.

Last month, a social affairs and labour official denied reports that Kuwait was planning to impose a ban on issuing visas to nationals from the five countries.

No job ban for expats on relatives’ visa in UAE

The UAE does not impose a work ban on expatriate employees sponsored by their relatives in case they want to shift to another job, according to the ministry of labour.A ministry committee discussed several applications for job transfer and exemption of the six-months and one-year ban for some workers at its weekly open-day meeting on Monday.

One application was submitted by a female pharmacist who wants to be sponsored by her husband after the pharmacy where she had worked shut down, according to Alkhaleej newspaper.

The committee told the applicant she can get a new job after transferring visa to her husband and obtaining clearance from the former employer, the paper said.

“The committee made clear that the labour law allows a woman sponsored by her husband to shift to another job without having a work ban because a ban is not applicable on those who are sponsored by their relatives.”

UAE Public debt law - in final stages

The United Arab Emirates should soon approve a law allowing the oil producer to issue its first ever federal sovereign bonds and create a local debt market, a finance ministry official said on Tuesday.

The long-awaited law, regulating issuance and the amount of debt the world's No3 crude exporter may accumulate, awaits a presidential nod after the UAE's top advisory council passed the bill in December.

"The public debt law is now in final stages for approval and as for the ministry of finance it has already started taking measures after the cabinet's resolution to establish a public debt bureau," Nadia Sultan told a conference in the UAE capital. "It is hopefully very soon," Sultan, an officer in charge of establishing the federal public debt management office, later told Reuters.

The legislation would limit UAE government debt to 25 per cent of gross domestic product, or Dh200 billion ($55bn). The International Monetary Fund projects that UAE government debt, including that of some of its seven emirates, to fall to 16.4 per cent of GDP this year from 21 per cent in 2010.

The federal debt management office is expected to coordinate future issuance with the individual emirates, which until now have been issuers of sovereign bonds in the Gulf Arab country. Sultan also said an issuance plan has been under consideration but neither she nor other finance ministry officials attending the event gave more details, saying the process was still at an early stage.

The UAE minister of state for financial affairs said on Saturday that the Opec member -- rated Aa2 by Moody's -- had no plans to issue a sovereign bond this year but it could do so at the beginning of 2012 if needed.

Saif Hadef Al Shamsi, senior executive director at the central bank's treasury department, told the same event that the ministry should coordinate debt issuance with the central bank as local bonds would drain liquidity from the market. "Any issuance over one year will be handled by the finance ministry," he said. "A problem lies in the legislative field ... as the central bank cannot sell short-term bills to people outside of commercial banks."

FNC approved public debt law in December 2010

The Federal National Council has passed public debt law on Tuesday December 2010, marking a key step toward the issuance of the Gulf Arab state's first sovereign bond.The legislation, which needs presidential approval to become law, limits government debt to 25 per cent of the country's gross domestic product, or Dh200 billion ($54.45 billion).

An earlier version of the legislation discussed last year had said public debt should not exceed 45 per cent of GDP, or Dh300 billion.

The bill provides a legal framework for creating a government bond market in the UAE with public debt instruments traded on one or more of the country's three financial markets."The bottom line is that the country needed the law not just to plan for a sovereign bond issue but also to revive the local currency debt market," said Abdul Kadir Hussain, chief executive of Mashreq Capital."As such, it is a positive start and hopefully it will help develop a local bond market in the region."

The UAE has said it will consider a federal bond after the passage of the debt law and the creation of a debt management office.Under the new law, the UAE will create a public debt bureau to advise the government on debt issuance and work with the central bank on issuing and selling government bonds and other financial instruments.

"What's the use of the public debt bureau if it doesn't monitor all government guarantees and any government debt?" said Obaid Humaid Al Tayer, minister of state for finance.The law also stipulates that debt issued for infrastructure projects should not exceed 15 per cent of public debt.

The country will look at a range of options, including using existing reserves or returns from government investments to finance a budget deficit of around Dh3 billion ($816.8 million) for 2011, Al Tayer said.

"We will study the budget's revenues," Al Tayer said. "The council has approved the public debt law, but I don't say that we will do this thing or that before we discuss the options in the cabinet."

The minister said returns from the Emirates Investment Authority (EIA), a sovereign wealth fund that manages the federal government's stakes in a number of key corporations including the Gulf's second biggest telecoms firm Etisalat, could be also used to cover the deficit.When asked if the UAE would issue bonds to finance the deficit, Al Tayer said, "only if necessary, it has not been discussed up to now".

Debt laws will put UAE in strong position to raise global finance

New laws on government debt and bonds will make it easier to raise cash, say analyst’s .The new UAE laws on government debt and corporate bonds will make it easier to raise finance for massive projects that are in the pipeline as the country renews its commitment to infrastructure development as a means of fuelling economic growth, analysts said.They also facilitate the job of international evaluation and standardisation of institutions to make possible an accurate classification of the UAE for rating purposes.

The UAE Government can now obtain loans from abroad of up to 45 per cent of the country's gross domestic product (GDP), or less than Dh300 billion, after the Federal National Council passed a law to regulate public debt last week.

The regulation also allows local governments of individual emirates to obtain loans that do not exceed 15 per cent of their GDP. The law comes after two years of work that involved senior consultants of the World Bank and a number of international financial experts.Last week, the FNC also passed other laws related to guarantees of deposits, bonds and public debt.The new measures are being seen as key contributors to a comprehensive, integrated fiscal legislation in parallel with the fast-paced growth of the country's economy.

UAE Cabinet decided to limit entry of unskilled expat workers





The cabinet deicded to limit the employment of limited-skill expatriate workers and to encourage the employment of skilled workers from within the UAE based on their vocational and accredited education degrees

  



The UAE cabinet decided to limit the employment of limited-skill expatriate workers and to encourage the employment of skilled workers from within the UAE

Abu Dhabi: A set of policies and resolutions to deal with demographic structure in the UAE has been approved by the Cabinet's session Sunday.

The cabinet decided to limit the employment of limited-skill expatriate workers and to encourage the employment of skilled workers from within the UAE based on their vocational and accredited education degrees.

The meeting was chaired by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. Shaikh Mohammad said that demographic structure challenge is given a top priority on the government's agenda.

The cabinet resolution exempts domestic workers or any other categories specified by the Chairman of the Federal Demographics Council (FDC) from qalification condition.

Several other resolutions to deal with demographic structure were issued and approved strategies for dealing with the issue.

Population balance

The resolutions and strategies aim to achieve a population balance in a parallel with comprehensive development of benefit to all Emirati citizens.

Shaikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, and Lieutenant General Shaikh Saif Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Interior and Chairman of the Federal Demographic Council, were present.

The Cabinet session approved passing a number of sovereign resolutions and tasking all relevant bodies with their implementation according to a strategy presented by Shaikh Saif.

The cabinet approved a set of clear objectives on the percentage of Emiratis compared to total population within the next 20 years using a number of policies, coordinated economic and social initiatives according to expected economic and demographic growth scenarios during the next 20 years. All demographic policies taken within that timeframe will aim to achieve these objectives.

The Cabinet instructed all relevant bodies to draw up economic plans and following up on the UAE's workforce by approving a balanced growth pattern that is characterised by economic diversity, relying on a skilled workforce and modern technology during its productive period to attain a national knowledge based economy that provides opportunities and meets the development needs of Emiratis in accordance with the leadership's directives which place citizens as the core for national development.

Productivity

In this regard, the Cabinet approved setting up the Productivity Improvement Fund to stimulate the private sector into improving productivity by relying on technical and technological advancements, and providing a skilled and trained workforce for the private sector. The fund will be an affiliate of the Federal Demographic Council, and its jurisdictions will be approved by the council's chairman.

The Cabinet also instructed relevant bodies to work towards finding suitable alternatives in providing skilled workers for the UAE labour market by setting up labour training centres abroad in the exporting countries to evaluate and train workers before recruiting them. The employer will not handle any additional costs. This system will be adopted to replace the previously unregulated employment system.

Unskilled workers

As for decreasing the number of unskilled workers in the construction sector, which is considered the sector that utilises the highest number of unskilled workers, the Cabinet instructed relevant bodies to lay down a general construction index containing a number of technical criteria that ensure developing productivity in this sector, as well as decreasing the number of unskilled workers in accordance with laws that assist contracting companies in using advanced technology means in this sector.

The Cabinet also instructed relevant labour market bodies to set a minimum limit for qualifications required for some jobs, starting with the construction sector. These qualifications will be approved by the Chairman of the Federal Demographic Council (FDC) in a move that aims to allow the labour market to rely on a skilled workforce and modern technology.

The Cabinet also tasked the FDC to place a limit on the number of employees in some professions that can be compensated for by modern and advanced technologies. The limit will be set on an annual basis, and will be altered when needed.

The Cabinet instructed all bodies concerned to abide by these resolutions, and mandated the FDC to implement the resolutions in coordination with all bodies concerned.

Banned workers must leave UAE:Ministry of Labour

Pvt sector staff must exit even if they hold valid residence visa; Dh50,000 fine for firms hiring banned workers.Private sector workers who get a one-year ban by their employers must leave the country even if their residence visa has not expired, according to the Ministry of Labour.

Clarifying rules governing expatriate workers who are not exempted from the job ban, the ministry said those who stay in the UAE after they get the ban are considered violators of the immigration law.

“Those workers who get a ban and stay in the UAE are violating immigration laws as this means they are staying without a job,” said Humaid bin Dimas Al Suwaidi, Assistant Undersecretary.

“Expatriate workers who come to the UAE enter on a work visa, which allows them to get residence…any violation by the worker of the job contract means he will be banned from work and this will deprive him from residence even if it still valid.”

Quoted by the semi-official daily 'Al Ittihad', Suwaidi said companies which employ a banned worker would be fined Dh50,000.

During the ministry’s weekly “open-day” on Thursday, Suwaidi said he had rejected a request by a company to hire a banned expatriate labourer, adding that worker is now offending immigration laws and must leave the UAE.

UAE Central Bank issued regulations to streamline High service fees charged by banks

High service fees charged by banks and excessive lending practices are affected as part of a host of retail banking rules issued yesterday by the Central Bank.

The new rules cover personal and car loans, with limits capping the amount banks can lend to customers at 20 times their salary. They also set the period of loan repayment at 48 months.In addition, the rules restrict service fees lenders can impose for personal accounts, cheques and debit cards.

Some of the new fees for bank transactions are as follows:

For opening new account – none

If balance is less than the minimum “monthly” - Dh25

Non-arrival of salary - none

Closure of account (if closed within one year of opening) - Dh100

Lack of sufficient credit in the account - Dh25

Issuing certificate of account balance - Dh50

Issuing clearance certificate - Dh50

Non-moving accounts - no charges

Teller transactions at branch (6 transactions monthly free) - Dh10 for each additional transactions

For cash withdrawal or deposit - none

Postpone the payment of the loan – Dh100 for each time

Loan restructuring - Dh250

Bounced cheques - Dh100

Periodic statement of account - Dh25 outside period agreed on

Previously there was a Dh250,000 (US$68,066) ceiling on personal loans but few other limits on service fees. As a result, banks were able to extend huge loans to consumers.

"We have compared fees in the region and put them slightly above regional fees, but not as high as banks wanted," said Suwaidi.

Under the rules, banks will be limited to charging a maximum of Dh25 for replacing lost or stolen ATM cards.

Closing an account within a year of opening will cost customers no more than Dh100. The cost of issuing a chequebook will be capped at Dh30.

Fees for loans will also be regulated. Processing fees for personal loans will be capped at 1 per cent of the loan amount.

Penalties for early payment of a loan will also be curbed. Banks will not be allowed to charge more than 1 per cent of the remaining loan balance if a customer settles a loan early.Those not complying with the rules will face fines