UAE extends visa for property investors to 3 years

Decision taken at Federal Cabinet meeting on Tuesday.The UAE federal government has extended visa for real estate investors from six months to three years.

This decision was taken by the Federal Cabinet on Tuesday.“The government took a raft of measures as part of its efforts to underpin economic growth within its strategic plan 2011-2013, including extension of visa for real estate investors to three years instead of six months,” Wam said.

The government also gave instructions for drafting a federal law regarding competition and another bill for reviewing provisions of federal law 6 of 2007 regarding the establishment of the Federal Insurance Authority and its mandate

Analysts said the decision will boost the property sector in the country as will impact on the growth of the overall economy.

End of service benefit should be calculated basis of total salary -Dubai Court

A worker’s end of service benefit should be calculated with respect to his total salary and not just the basic payment, according to a new ruling by the Dubai Court of Cassation.The decision comes in a case where an employee sought dues of up to Dh159,000 from his employer, which was rejected by the Court of First Instance and later overturned another court.

However, there was no indication from the court whether this was a precedent or only a ruling for this particular case.
Accusing the company of his arbitrary suspension, the employee in his lawsuit demands three months’ salary as compensation for sacking him without notice, Dh11,000 as salary of the last month he worked, Dh22,000 as leave allowance and ticket to his home country and Dh82,000 as his end of service gratuity.
The plaintiff also claimed in the lawsuit that he worked in the company as a Director of Advertising and Editor of a magazine owned by the company.
However, Court of First Instance in its judgment rejected his lawsuit and ordered the employer to pay a total amount of Dh54,000 to the employee.
The employee appealed against the verdict to the Court of Appeal which ordered the employer to pay the value of a return ticket to the complainant’s home country in addition to the amount ordered by the earlier court.
The prosecution also appealed against the ruling on the basis that the end of service benefit of the employee was calculated only on according to the basic salary of worker, which it said was against the labour law.
The Court of Cassation accepted the appeal and directed the case to the Court of Appeal asking for a new panel judges to look into the case.
The Court of Cassation observed: "The pay in accordance with the provisions of Article I of the Labor Law includes all that a worker receives as emolument, whether in cash or in kind, hence the gratuity should be calculated according to the entire amount received by a worker, including his monthly commission.”

The most annoying bank fee in the UAE and how to avoid it

One of the less obvious side-effects of the economic slowdown is the increase in the number of bank services that were earlier offered for free but are now being charged for by the country’s banks.

Readers who’ve been around for more than a few years will remember when banks would actually honour their “free-for-life” credit card pledge and not charge customers an annual fee for such cards.

Nowadays, however, a free-for-life card comes preloaded with monthly maintenance fees, contradicting the very essence of the term “free” although we’re sure legally and technically, the banks are always right.

Also, there was a time when it used to be a customer’s privilege to have a documented proof of your bank transactions and account balance delivered to your doorstep every month – without an additional charge. Now, more often than not, you’ll have to shell out loose change every month to receive a copy, or settle for an emailed statement if you’re not inclined to dole out extra dirhams every month.

For bankers that want to give us the “green” logic: please stop bundling additional brochures and unwanted marketing material along with our bank statements and that will go a long way in going green.

A recent poll run by Emirates 24|7 shows that a majority of respondents believe that UAE banks are finding ingenious ways of relieving us of our extra dirhams, any which way they can get them off us.

The poll shows that the most annoying fees that customers in the UAE have had to pay include monthly statement charges and to get a ‘no dues’ letter after the end of a loan with the bank. Close to a third (29 per cent) of respondents branded their monthly statement charges as the most annoying bank fee they’ve had to pay while an equal number of people said paying money to get a ‘no dues’ letter after having repaid the loan with all the interest and charges was the most annoying fee for them.

“I was a good customer of my bank and prepaid my personal loan – for which my bank charged me an early settlement fee, by the way – and then asked them to give me a no liability letter. They charged me Dh200 for it. I found it ridiculous, but I’s rather pay to have the letter and be safe than not have it and be sorry,” said a respondent.

“The banks are now masters in the science of nickel-and-diming consumers with fees that start from the second you open an account to the moment you close it. I’ve moved from one bank to another and found out that it’s the same fees under different names,” said another upset respondent.

Almost a quarter (24 per cent) of respondents found paying money to close a bank account as the most annoying bank fee ever levied on them while 10 per cent said paying to talk to a human teller was the most annoying for them. “Suddenly, the once toll-free numbers have all become paid now,” a customer quipped. Another 7 per cent said that money being charged for issuing a replacement credit card was the most annoying.

lists below some tips that you can follow to avoid having to pay some of the most annoying fees charged by banks:

1. Minimum Balance Fees. While this fee is not new, some banks have now started levying this fee on even salary accounts, which were earlier exempt from it. If you find it hard to maintain a certain balance in your account and you happen to mind this fee, then your best bet is to go with banks that don’t yet have a “minimum balance required” clause, although there’s no guarantee that they wouldn’t commence this practice in the future.

2. Ubiquitous ATM Fees. These ATM fees are everywhere. You use a UAE Switch ATM machine and before you know it, you’re out Dh2 per transaction. If you use these ATMs abroad, be prepared to pay Dh15 or even more per transaction. To cut down on these costs, use debit/credit cards where possible and regularly stock up on cash at you own bank’s ATM for bills you can’t pay by cards – petrol, for instance.

3. Paper Statement Fees. Emailed statements are indeed the ‘green’ way of doing things – and more efficient too, considering the number of times I’ve lost my paper statements in the past. Online banking is much more convenient and hassle-free. But remember, once you switch to emailed statements, some UAE banks charge you a one-time fee of up to Dh100 to switch back to paper statements. So if you think that you might need to switch back to paper statements – for whatever reason – in the near future, you may be better off paying a nominal monthly fee for paper statements instead of a hefty switch-back charge.

UAE loses 13,500 millionaires to recession: Wealth report

The number of UAE’s high net worth individuals (those with $1 million or more in financial assets, not including the house in which they live) declined by 3.5 per cent to 52,600 in 2010, on top of an 18.8 per cent decline in 2009, according to the 15th annual World Wealth Report, released yesterday by Merrill Lynch Global Wealth Management and Capgemini.
The population of UAE millionaires fell from over 66,000 in 2008 due to a decline in the market capitalization of firms listed on the stock markets, coupled with the falling values of property in the country, which saw 1,900 UAE millionaires lose the coveted status in 2010 along with over 11,600 less millionaires in 2009, taking the total tally of UAE individuals losing the 'millionaire' status to more than 13,500 in two years since the onset of the global economic slowdown.
Elsewhere in the region, the number of millionaires in Saudi Arabia and Bahrain grew in 2010. Saudi Arabia had 113,300 millionaires in 2010, an increase of 8.2 per cent from 2009. In Bahrain, there were 6,700 millionaires in 2010, up 24 per cent from 2009.
Overall, the number of world’s high net worth individuals and the wealth they possess expanded in 2010, surpassing 2007 pre-crisis levels in nearly every region.
The Middle East had the second highest global growth rate in the number of millionaires, after Africa, with the number of regional rich rising by 10.4 per cent to 440,000, the report said, adding that the combined wealth of regional millionaires increased by 12.5 per cent to $1.7 trillion in 2010.
Globally, the number of millionaires grew 8.3 per cent in 2010 to 10.9 million, and their wealth increased by 9.7 per cent to reach $42.7 trillion (compared with growth rates of 17.1 and 18.9 per cent, respectively, in 2009). The global population of ultra-rich (those with more than $30 million in financial wealth), grew by 10.2 per cent in 2010 and their wealth by 11.5 per cent.
“The past few years have seen great fluctuations in [the millionaires’] wealth and population,” said Tamer Rashad, Head of Middle East, Merrill Lynch Wealth Management. “In 2010, we saw growth rates slow down from the higher double-digit levels of 2009 when many markets were quickly returning from significant crisis-related losses.”
The global millionaire population remained highly concentrated in the US, Japan and Germany, which together accounted for 53 per cent of the world’s millionaires. The US is still home to the single largest rich individuals segment in the world, with its 3.1 million millionaires accounting for 28.6 per cent of the global millionaire population.
“While over half of the global [millionaire] population still resides in the top three countries, the concentration of [millionaires] is fragmenting very gradually over time,” said Karthikeyan Rajendran, Sales Director, Middle East, Global Financial Services, Capgemini.
“The concentration of [millionaires] among these areas will continue to erode if the [millionaire] populations of emerging and developing markets continue to grow faster than those of developed markets,” said Rajendran.
Asia-Pacific beats Europe for the first time
Asia-Pacific posted the strongest regional rate of millionaire population growth in 2010 among the top three markets. While millionaire wealth had already overtaken Europe in 2009, Asia-Pacific has now surpassed Europe in terms of millionaire population, expanding 9.7 per cent to 3.3 million, while Europe grew 6.3 per cent to 3.1 million.
Asia-Pacific millionaires’ wealth gained 12.1 per cent to $10.8 trillion, exceeding European millionaires’ wealth of $10.2 trillion, an increase was 7.2 per cent in 2010. Asia-Pacific is now the second largest region for both millionaire wealth and population, second only to North America.
Also of note in the Asia-Pacific region, India’s millionaire population became the world’s twelfth largest in 2010, entering the top 12 for the first time.

Investor Visa in UAE

 For investor visa ,expats in a commercial license in UAE will be required to pay AED 10,000 as security deposit if his shareholding is equal to Dh 70,000 or more. If his shareholding is less than Dh70,000 he will be required to pay Dh 20,000 as security deposit.

A partner in a professional license will be required to pay Dh20,000 as security deposit, from which a partner holding a bachelor degree in the same field of his license business will be exempted.

DOCUMENTS REQUIRED :

• Passport copy
• One Photograph (white background) for Visa application
• Copy of Memorandum of Association
• Trade Licence Copy
• Partners List
• Immigration computer card copy
• Last three month's Bank Statement (if the company is old)
• Two Photographs for Medical
• Two Photographs for visa stamping
• 10,000 Deposit receipt original + copy
• Original Medical Certificate

INVESTOR/PARTNER VISA EXPENSE

DESCRIPTION AMOUNT in AED NOTE INVESTOR VISA APPLICATION 220 DEPOSIT (L.L.C. Partner) 10020 20020 for professional licence partner/investor GET VISA INSIDE THE COUNTRY 530 If the applicant is inside UAE VISA POSITION AMENDMENT 530 If the applicant is inside UAE MEDICAL 300 charge varies according to hospital VISA STAMPING 370 100 extra for Urgent submission TOTAL 11980 Typing charge extra

Renewal of a partner's/Investor's residence Visa

Required Documents:

• Prepaid e-form application

• Applicant's original passport

• 2 photographs of the sponsored partner

• Original medical certificate

• Copy of valid commercial license

• Copy of the partnership contract attested by Notary Public

• Copy of receipt proving payment of the partner's security deposit:

Fees & Collection

Dh 370 for 3 years  (Typing charge extra).

Dh100 extra for urgent delivery.

Dh 15 for ordinary delivery by Empost.

Special Notes:

All fees for Residence permits shall be paid at the typing offices, while all securities shall be paid in cash to the bank at the Section hall. Fines for overstaying 17 days or less shall be paid in cash to the Fines Collection staff at the Section hall, while fines for overstaying longer than seventeen (17) days shall be paid cash to the bank at the Section hall.

Employers, domestic workers need to submit written contracts

Domestic workers would get a full-day rest every week and would not be required to remain with employer’s household during their annual leave or rest days, according to the International Labour Organisation’s landmark treaty signed on Thursday.

The UAE and other Gulf states supported this landmark treaty – which means this could be implemented in the region.

"This is a historic moment at the 100th session of the International Labour Conference, and we are making an important turning point," a UAE envoy, speaking on behalf of Gulf states, all of which supported the treaty, told AFP.

However, employers and domestic workers would also be required to submit written contracts mentioning the latter’s rights. The new convention would ensure domestic workers enjoyed conditions "not less favourable" than other workers.

The convention, which was adopted with 396 votes for, 16 against and 63 abstentions, will come into effect upon the ratification of two countries. The Philippines and Uruguay have already said they would ratify the accord.

ILO data, which is a compilation of national statistics, indicate that there were at least 52.6 million domestic workers worldwide in 2010.

Despite the large numbers, domestic workers are still among the most exploited and abused. Many are required to work irregular and long hours for low pay and are given insufficient rest. Live-in domestic workers in particular, can be on call at all times of the day. They are also largely excluded from social protection such as maternity benefits and social security.

Nevertheless, joining the convention is only the first step. Countries would not have to implement the treaty until ratification, while others can also opt not to sign up, which could reduce its bite.

While it has secured the support of countries ranging from the United States, Indonesia, and Brazil, others, such as Britain, abstained.

Britain said it could not vote for the convention as it was "unable to ratify in the foreseeable future."

It noted for instance that it was not practical to apply the same health and safety standards, including inspections, to private households employing domestic workers.

It added that it would be "inappropriate to hold elderly individuals... to the same standards as large companies."

But supporters of the convention and activists believe that the strength of the treaty is that it sets a standard.

"There's an understanding that major sending countries... are in support. They will want the protection that will be provided when dealing with other countries," South Africa's chief negotiator Virgil Seafield told AFP ahead of the vote.

Dh100,000 fine for credit card surcharge

Ministry of Economy decided to impose fines up to Dh100,000 on commercial facilities and outlets that impose a surcharge on consumers using credit cards, reported 'Emarat Al Youm' newspaper.

“The decision is in line with the new amendments to the Consumer Protection Act approved by the Council of Ministers,” said Dr Hachim Al Nuaimi, Director, Department of Consumer Protection, MoE.

He was speaking at a meeting with representatives of economic departments and local municipalities on Monday, which was convened to to implement decisions of the Supreme Committee for Consumer Protection.

The decision curently applies to purchases of goods by individuals; it will be extended to different kinds of services later, he added.

Al Nuaimi said commercial foundations and retail outlets charging extra on credit cards will be fined between Dh5,000 and Dh100,000, in accordance with the Consumer Protection Act as well as taking into account factors determining the value of the violation and the number of times the party has erred.

The meeting agreed to form working groups to discuss the mechanisms of implementation of the resolution and to increase customer awareness.

Al Nuaimi urged consumers to defend their rights and file complaints when they see violations of their rights.

Three-day weekend in the UAE from June 30 to July 2

The official holiday to mark Al Isra Wal Miraj, the ascension of Prophet Mohammed (PBUH) will be on June 30th instead of June 29th, says a circular issued on Tuesday.

Humaid Mohammed Obaid Al Qattami, Minister of Education and Board Chairman of the Federal Authority for Government Human Resources in the circular said that Al Isra Wal Miraj holiday for workers in the federal ministries and bodies will be on Thursday, 28 Rajab 1432 AH corresponding to June 30th instead of Wednesday, June 29.

This came in accordance with the article No. 100 of the Council of Ministers Resolution No. 13 for the year 2010 on the Regulations of the law of human resources in the federal government.

On this occasion, Al Qattami expressed his deepest congratulations to President His Highness Sheikh Khalifa bin Zayed Al Nahyan; His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE and Ruler of Dubai, and to their Highnesses the Supreme Council Members and Rulers of the Emirates, wishing them good health and prosperity.

He also congratulated the people of the UAE and the Arab and Islamic countries on this occasion.

Private sector workers sacked during their probation period must leave the UAE

Private sector workers sacked during their probation period must leave the UAE after obtaining their dues from the employer as they are not exempt from the one-year job ban under the new law, according to the ministry of labour.

The ministry outlines this rule during its open-day meeting held every week to consider complaints from workers or their employers in line with new work laws introduced early this year to regulate the controversial ban period.

During the meeting on Monday, an expatriate female public relations employee and several other workers from the same company complained that they have just been sacked a few months after they were appointed and asked the ministry to allow them to shift to another firm and exempt them from the one-year ban.

“The ministry made clear that in case the probation period of those workers is six months and their services have been terminated during that period, then they must get their dues and leave the UAE,” Alittihad newspaper said.

“But if the probation period is set at three months in their job contract, this means they have completed their probation and they will be allowed to move to another company without having a ban since the employer violated the job contract.”

Dubai government plans to offer pensions to expats

The Dubai government is evaluating plans to give pensions to foreign workers, based on suggestions by World Bank on how to improve employment laws including staff benefits, UAE daily The National reported on Sunday

 Representatives of the UAE and the ILO have also discussed the establishment of a pension fund for expatriate workers so that the Government can guarantee that workers receive end-of-service benefits.

"The employer would have to pay regularly to a fund supervised by a Government entity," said Maurizio Bussi, the deputy regional director for Arab States at the International Labour Organization (ILO).

"This especially indicates that the UAE is not looking for short-term labour contracts," said Azeem Ibrahim, an economic adviser to the government of Pakistan. "This sends a message that their contributions will be valued."

Nasser Munder, the Filipino labour attaché in Abu Dhabi, said a pension fund for the expatriate workforce would guarantee that workers receive their end-of-service benefits from their employers.

"Workers have said they often find it difficult to get their full and final settlement from their employers at the end of their contract," he said

"We are providing technical assistance in the area of employment policy. It covers the areas of expatriate benefit treatment including pensions," the paper quoted a senior World Bank official in the region as saying.

"There's a lot of experience globally on pension schemes including some that pertain to portable pension schemes, which could be applied to expatriate labour," the official added.

Dubai employers do not provide pensions for expatriates. Financial experts say the prospect of offering pensions could help to woo more foreign workers to the emirate as well as encourage them to stay longer in the country, the paper reported.

A possibility of converting the end-of-service gratuity system into pensions is also being considered, the paper cited an informed source.

Under a federal law dating back more than three decades, companies have to provide only end-of-service gratuities to employees who have completed one or more years of service, the report said.                                                                                             

Switching of jobs allowed only after two-year term

Major General Mohammad Ahmad Al Merri, Director-General of the General Department for Residency and Foreigners' Affairs in Dubai, answers questions from Gulf News readers on issues related to residency in the UAE

I have been working in a hotel in Fujairah for about 14 months. I know that I can’t switch job right now because there will be a six-month ban. But I got vague information from my friends that if I get a job under immigration visa then I can change to that job. And also hotels in Dubai are issuing employees such visas. I want to get broad information about this and I also want to know will I be able to change to a job in Jumeirah Group if I get a job there.

In order to change job you need to complete two years at the existing job. People can change work from private to government or semi government without the need to complete two year and such visas are issued by the residency department. You can check with Jumairah group if you can get job with them.

Can I get residence visa for my parents in law? My wife is pregnant and she will give birth in July, we are planning to bring her parents via residence visa for 1 year. Can I apply for them? We are staying in Abu Dhabi.

You can apply for visa for them and obtain one-year residence visa.

Kindly advise about my wife and child. They have a 3-year residence visa under my sponsorship and I wanted to sent back their home country for some medical treatment ,may be take more than 6 months for come back, may I know how  long are allowed  for residence to stay their home country and if  any restriction  for enter in UAE .

They have to enter the country before the end of the six months. According to the Federal Residency Law the residence permit granted to a foreigner shall be deemed as cancelled if the period of his/her stay outside the UAE exceeds six months. 

Just need to clarify: I am working in Jebel Ali and am currently on JAFZA Visa. I am currently sponsoring my family and so I need to know that if ever my visa is cancelled (resigned from this company and am offered from a new company in Jebel Ali, U.A.E)

1. Is it possible if I keep AED 5000 deposit for each member of my family and so the visa will not cancel....

2. Why will this company cancel my visa when in fact JAFZA (two company’s in Jebel Ali can have internal file transfer) Appreciate feedback.

For changing your sponsorship from one company to another then you need to change your visa to the new company and you need to change your family visa also.

I have one query. Please help me out in my passport. I have my husband visa he is absconded in the UAE. I am from India he is from Bangladesh. I don’t have any idea about him I have one baby girl.  It is one year past we left Dubai my query is my visa is still active or cancel can I re enter the UAE.

If you were on you husband sponsorship you need to cancel your own visa and it needs your original passport. You are not absconded if he is absconded.

My old residency visa valid from Aug2007 - Aug2010 is not yet cancelled since I renewed my contract last Aug2010. I am working right now with an issuance of valid Labour Card up to July2013. My questions are: Does the company will face any penalty on this? If so, how much is it per day?  For an example, in between, I will find a new job, what are the procedures? Does it mean also, I am not allowed to travel unless I will have a new residency visa?

Of course you need valid residency visa to work. As you mention, your residency expired nine months ago and you do not have new one which means that you over stay in the country and you need to pay fines for nine months. 

I would like to clarify a query for sponsoring house maid. I am working in a company in Abu Dhabi and my family is with me. Our visas are from emirate of Abu Dhabi. I am planning to change company and my new visa will be from Dubai. Now, I have plans to bring a house maid under my sponsorship. My question is that, if my visa from Abu Dhabi is cancelled, what will be the status of my maid’s visa. Whether it will be cancelled automatically? Whether I have to apply for new visa for the maid once I get Dubai Visa? Kindly, clarify this question.

You have to cancel your housemaid visa and obtain new one from Dubai on your sponsorship.

I have a query. Is there a penalty for new born baby if the visa is not yet applied since the 120days allowance if over due to delay in releasing of passport?

Yes, you need to apply for residency visa for the new born baby however you can bring letter from your Consulate stating that the delay is due to the delay in issuing the passport for the baby.

My wife has a resident Visa in UAE expiring on March 2013. She is going back to her home country because of some emergency issues. She might live there for more than 6 months and as per the immigration rules the resident cannot live any longer for more than 6 months. How will she be able to come back to UAE if the time outside UAE lapses more than 6 months for her? Will I be requiring applying for another Spouse Visa for her? Is there any restriction as per the Law that if a person lives outside UAE for than 6 months he/she cannot come back to UAE for certain amount of time or at all?

According to the Federal Residency Law the residence permit granted to a foreigner shall be deemed as cancelled if the period of his/her stay outside the UAE exceeds six months.

I have a question I will appreciate if you can answer me. I am on Abu Dhabi employment visa and I have sponsored my wife with that visa. also we are living in Dubai my wife has found a job in Dubai and when the company has applied to issue a labour card for her, labour rejected to issue the labor card for her because she was on Abu Dhabi visa and they are saying that because she is on Abu Dhabi visa she cannot work in Dubai with that visa

My question is when a visa is issued it is accepted in the whole UAE, it should not be like this!

You can inquire with ministry of labour about that as they are the concerned authority who issue labour cards.

I am planning to get my mother here on a residence visa, but am not sure if my salary can compensate it. My salary is Dh 7,500 is this ok that I can sponsor my mother? How much will be the salary bracket to be able to sponsor her. What are the requirements needed if I will get her here?

To sponsor family members your salary should be Dh 10,000 and you should be of job category who can sponsor family members and you need to pay deposit Dh 5,000 and the visa will be valid for one year only and it can be renewed.

I recently heard of someone who had a couple of court cases registered against him by local banks for returned cheques, for sums below Dh 15,000, and who wanted to renew the residence visas of his two small daughters and wife. The application for renewal was rejected. He has been in the country for nearly 20 years, his children have grown up here and he was shattered at the rejection especially as he is in constant touch with the banks for negotiation and has absolutely no intention of doing a bunk like some others. As it is he is facing financial stress and so the question of relocating his family on a forced basis to a country that he is no longer in touch with is adding tremendous pressure on his mental equilibrium. Is it true that Immigration is working alongside the police and rejecting visa applications of cheque defaulters?

You need to contact police and the bank for this issue to drop the case or to sort out the issue then you can renew the residency visa

My father with his whole family had being in the UAE from the past 30 years, but unfortunately he was being ask by the immigration department to leave the country without any justification/reason. He was only given 7 days to leave the country. I understand that it is the country right to ask any person to leave the country because of security reason but this should be for a limited period of time. My father is being black listed and god knows when he will be allowed to enter the country again so that we can stay together as a family.

You can check with residency department to give more time for your father.

My wife is working in a hospital at Abu Dhabi. But they were holding passport. She is under their sponsorship. So what I need to do? If I will complaint? Is there any problem? They will cancel her. Actually we need our passport for 1 Month. Now they are not providing us. So what I need to do?

You can ask the company to give the passport back

I’m from Pakistan and currently a resident of Qatar employed with a Real Estate Company as a Real Estate Valuer (Appraiser). I had been working in Dubai born in Sharjah. I would like to know can I get a visit visa on arrival at the airport or at the border.

You can get visa upon arrival if you are legal residents in Qatar and it depend on your profession mentioned in your passport for example manger, engineer and so on.

I am an employee in Abu Dhabi emirates to bring my mom and dad, Who are aged people (above 58) in India my home country they doesn’t have any supporters there I am the only son who need to take care. So, please let me know what procedures to take residence visa for them are.

You can bring them but that depends on your salary which should be Dh 10,000 and above and your profession included with the category that can sponsor family members.

I want to sponsor my mother-in-law who does not have anyone to support her except us. Her husband is alive but he does not look after her.

As per current UAE laws, one needs to sponsor both the parents.

Please let me know the documents I can produce in the immigration to prove that her husband is not supporting her.

You need to sponsor them both or to prove that they are separated or one of the passed away.

I am working here in the UAE since one and a half years, I am from Pakistan and there my parents are dependent on me. I send them money every month, but money is not everything. They need care as they are old and as per Quran it is the responsibility of children to take care of their parents when they get old. I feel very bad everyday that I am unable to take care of my parents.

I want to ask you how I can bring my parents to the UAE. They have no one over there and their lives are not stable as well. Please guide me in this regard and oblige.

Yes you can but you need to compile with salary requirements and profession requirements.

Due to some baby health problem I send back my wife and son to India. My son is 1 year 3 months now.  But their exit date already crosses more than six months. So now my wife and son visa will be cancelled?  Or still it is chance to come back to Dubai on same visa? Kindly guide me for this problem.

According to the Federal Residency Law the residence permit granted to a foreigner shall be deemed as cancelled if the period of his/her stay outside the UAE exceeds six months.

I am working as a teacher in a school in Dubai. I joined this school in September 2009 on a visa sent by my sponsor but I got the residential visa in October, 2009. Now I want to change my job in July as the school year is ending, can I change my job in July or October? However, my visa will expire in 2012 (which was a three year visa). Will I be fined for anything if I change my job?

You can change job in October but if you need to change in July you need NOC from your old sponsor. 

What minimum requirements I need to sponsor my parents on a residence visa, I heard it’s different to applying for wife/children.

For both parents is one-year visa which can be renewed and you need to pay deposit of Dh 5,000.  

I have been working in a company in Dubai since October 1, 2005 with a Basic Salary of Dh 5000 and total salary of Dh 8000/-. But I got my visa stamped on 12 January 2006, I have completed the terms of the first limited contract which ended on 11 January 2009. Renewed the contract for another 3 years which expires on 12 January 2012. I also had my Basic Salary changed in this contract to AED 10,000/-, with a transport allowance of AED 2500/- and other allowance of AED 5000/-. The company provides me with a 1 bed room accommodation apart from all the above, which is not mentioned in the contract.

1. If I resign from the company now (12/05/2011), Will I need an NOC to change job? How much gratuity (amount in Dh) will I can I claim for as per UAE labour law? Will I have to pay any sort of compensation to the company? The company has this way of paying less gratuity by charging the employee for painting the house they have been staying in (as company provides accommodation) or asking for some or the other charges towards maintaining the flat which the employee has been using (where as they wouldn’t pay anything to the apartment owner or real estate company) even if the real estate company wouldn’t ask for any such charges. So is this legal, if yes how much can they deduct?  Is there anyway that I can make sure the flat is handed over in a good condition (I won’t be able to get any sign off from any employee of the company as they are not authorized to do so)?

How long can the employer delay in cancelling the visa and handing over the passport to the employee (it has been noticed that there have been employees waiting for more than 2-3 months to get their passports, this is because the employee hasn’t paid the employer whatever money they had asked for)?

If I don’t wish to renew my contract after the expiry date (12/01/2011)

When will I have to submit the resignation letter or a letter mentioning that I wouldn’t want to renew the contract? How much gratuity (amount in AED) can I claim for as per UAE labour law? Will the company be able to deduct any amount towards the flat maintenance in such case? Will the employee have to pay any amount to the employer? Your response in detail would be of great help.

Ministry of Labour is the concerned authority who can answer all your questions but we can tell you that the company must cancel the visa immediately of the employee and cannot hold the passport for 2 to three months to cancel the visa after resignation

We are trying to get a maid on our visa she is a Sir Lankan and is currently working in a cleaning company. She is very much interested to work as a full time maid and wants to resign from her company. My questions are as below:

If she resigns from her company and the company puts a ban on her will we are able to bring/sponsor her on our visa. We are an Indian family will there be any issues if we apply for a Sir Lankan maid. What will be the requirements to apply for visa?

You can apply for visa for her after she complete the ban imposed by her old sponsor. You can sponsor sir Lankan even if you are Indian. For visa requirements you can visit our website mentioned below.

We are expecting child birth by next month; appreciate if they provide the complete Procedure for getting birth certificate and residency visa.

Birth certificate can be obtained from the hospital where the baby is born. You can visit the residency department to apply for residency visa for the baby after obtaining passport for the baby.

I am working in a company as a software engineer from last 1 year. If I find any good opportunity so can I switch job? Or If I switched I have to face ban?

You can inquire with Ministry of Labour about that issue.

I want to resign from my current company and want to change my sponsorship from company visa to husband visa as I am going to complete my 1 year in 15th June 2011 by labour law in unlimited contract ,I am an MBA degree holder but it is not based on that as now I am holding archive clerk visa, I had not received my salary for more than 2 months so my company told me because of delayed salary you can cancel your visa we will give you NOC but we will keep your 1 month salary because of NOC. Do I need NOC after 1 year in unlimited contract?

Can I change my sponsorship from company visa to husband visa after 1 year without NOC in unlimited contract?

Which date does matter to complete 1 year of contract, the joining date or labour contract date as my joining date is 15th may 2010 and by labour contract it is 15th June 2011? 

You can inquire with Ministry of Labour about that issue.

I am Chinese; working in a construction company as PRO, and also do some social work for Chinese website regards the visa issue, employment issue.  As you know, it is the common disease in china; nearly 10% of Chinese population is HB virus carrier, means HB positive. From the news which published on August 20, 2010, it is said that besides the 6 catalogue, there is no more requirement for HB test in other occupation. But What I am confused now is it true that it is working on both new visa and renew? Why did the immigration officer reply me that: we are not sure, but the person should be fitness? What dose it mean of fitness? Is it meaning that: it depends on the medical centre? They have right to let them pass or let them down? Could those who are HB positive come to UAE for working? Medical center will check HB or not? Only new visa or both new and renew? 

The residents’ visa will be issued or renewed depending on the medical report if it stated that the person is fit then the residents’ visa will be issued.

I came to the UAE in September 2007 to work on a contract for a UK company, which is part group of companies that have work and offices in the UAE and other parts of the world, I worked on a visit visa for approximately 3 months, I worked for the UK side of the company until February 2009 when I finished with UK and then signed a contract to work for the same group of companies UAE. Am I entitled to be paid gratuity from the date I first worked in the UAE with the UK company which was paying me from the UK, since finishing with UK in February, I have been paid by the UAE side.

You can inquire with Ministry of Labour

I am an Indian civil engineer in profession working in a construction company and my salary is Dh 14000, i am married with one daughter. I am the only son of my mother she is dependant on me my father expired, I went many times to Abu Dhabi immigration for getting residence visa for my mother but every time the official staff replied me that they stopped issuing residence visas for parents, I am arranging visit visa every three months for my mother, this is her third visit here, my expenditure is doubled in this and very hectic for my mother to travel every three months, please do the needful.

You can inquire with Abu Dhabi Residency Department.

medical examination for licence seekers who are 60 years and above

Roads and Transport Authority is planning to introduce medical examination for licence seekers who are 60 years and above. This includes even those who wish to renew their expired licence. The move aims to ensure drivers are healthy and free from illnesses, reported 'Emarat Al Youm'.

Ahmed Bahrouzyan, Executive Director of the Licensing Department, RTA, said: "RTA will undertake a comprehensive study to modify and develop procedures for obtaining driving licence in coordination with the Interior Ministry and the Dubai Health Authority (DHA)."

RTA has not yet determined the age category where the new procedures will be applied, but in all probability it would cover those above 60 years, he added.

He said the body meets regularly with the Dubai Health Authority, to identify the types of medical examinations and age groups that should be subjected to tests as well as to identify chronic diseases that would aggrevate due to driving.

Bahrouzyan said the RTA seeks to implement best global practices in the service of security and safety on the roads.

He added the RTA is currently considering the application of a British study related to drivers of commercial vehicles and heavy vehicles to transport hazardous materials. It would later be submitted to the DHA to be discussed and modified to implement in the region.

The licencing department issued 33,142 licences in the first quarter of this year, he said and added that the success rate in obtaining driving licences witnessed a significant increase of 29 per cent.

RTA is seeking to develop its services to ensure the success of raising the proportion of applicants for driving licence by 35 per cent.

Registering property under a free zone firm is an option still under discussion: Official

Dubai has not finalised any new residence visa system for property owners and the talks of granting residency visa are very “premature“, a senior government official .

“At a recent meeting, ways of giving residency visas were discussed and one option was to allow people to register their properties as companies in free zone. This will then allow them to get residency visa. But, this was just a proposal and nothing has been finalised,” the official said on conditions of anonymity.

“There is no way a retired person who wants to live in Dubai can get a residency visa even if he owns a property. We are trying to help people like them.”

He reiterated “it was just a proposal in the meeting… nothing has been worked out.”

Last year, this website had reported that certain developers in Ras Al Khaimah were offering residency visa linked to properties if registered with a free zone. Real estate agents said that companies there were still helping buyers to get free zone visa.

When called, Rakia CEO, Dr Khater Massaad denied offering any such visas at all, saying, “We are fully committed to following the federal regulations on granting property visas.”

The federal law currently entitles foreign owners of the UAE property to a six-month multiple-entry visa, which came into effect on June 1, 2010. According to the law, applicants would have to own a property of not less than Dh1 million and earn Dh10,000 a month. The visa needs to be renewed every six months at the cost Dh2,000.

credit card surcharge ban from July 1-UAE gov.

Ministry of Economy has warned retailers in the UAE to stop charging fees on credit cards from July 1.

Sultan bin Saeed Al Mansoori, Minister of Economy and Chairman of the Supreme Committee for Consumer Protection, headed the second meeting of the committee for 2011 which passed resolution prohibiting retailers from imposing charges on credit card usage as commission.

The committee also agreed on liberalising trade of 15 new products including detergents and washing powders, dairy products and juices, drinking water, livestock, feed, fats and oils, and the list will be sent to the cabinet for approval.

”This is strategic to reduce monopoly and exploitation, and will enhance market competitiveness,” said Al Mansoori.

The committee reviewed a report on the advertisements for fast food outlets, and recommended that awareness measures must be initiated to ensure that customers are not misled by catchy advertising and resort to unhealthy eating, especially of junk food.

The committee also reviewed a report on the status of the Call Center in the Consumer Protection Department, and another on the difference between the prices of key food items sold at cooperative societies and major retail outlets.

The committee discussed the Electronic System for Goods Monitoring which is expected to be operational during the second half of 2011. Currently, the ministry is undertaking a pilot phase with some commodities and the results will be generalised for other goods. The new system works through electronic links between the major trading centres and UAE customs ports, and can monitor the prices of 200 commodities on a daily basis.

The committee discussed a report on the increase of prices at gas stations and recommended to open channels of communication between the Ministry of Economy and all petrol stations with the participation of representatives from economic departments to identify the reasons for rise in price.

The committee was briefed on a proposal to reduce rental fees at retail outlets and cooperative societies. The committee recommended the distribution of marketing margins equally between retail outlets and consumers.

Eida to introduce online ID registration soon

Applicants seeking to register in the UAE national identity could fill the needed form at home and avoid standing in long queues at packed registration centres when authorities introduce an online service soon.

The Emirates Identity Authority (EIDA), which oversees the landmark ID project, said it was in the process of introducing such online service that will allow all applicants of filling the ID form, paying fees and getting an appointment for finger printing without having to go to registration centres.

“We are developing an electronic ID form so applicants themselves can fill it online without having to deal with registration centres…the form will be available online shortly,” EIDA director general Ali Alkhouri told Emarat Alyoum daily.

“Once this service is enforced, applicants will only have to fill the form online though EIDA’s website, upload all needed documents and pay fees online…they then can get an appointment for finger printing online.”

Khouri said existing authorized registration centres would remain in operation for those who do not wish to have their applications processed online.

He told the paper the online service would be introduced on a limited trial basis in September before it is fully enforced by the end of the year.

“This is a strategic move as the new service is expected to largely increase the rate of registration…applicants will be able to register online at their homes or offices without having to wait for long periods at registration centres.”

Khouri said the new service would cut fees paid by applicants by nearly 40 per cent as they will not be required to pay up to Dh70 in fees for registration.

Dubai plans to introduce a new residence visa system for property owners

Dubai plans to introduce a new residence visa system for property owners, reported 'Al Bayan' newspaper.

A government official was quoted as saying "authorities are discussing ways of granting owners of properties in the emirate, residence visas based on transparent rules and legislation".

The new rule is expected to boost the realty sector. However, realtors are wary about the costs involved. As some experts say the costs involved in setting up a company, including mainteance and ownership fees, to register a property under it could go up and this could put off buyers, reported 'Gulf News'.

Yet others believe the new rule would attract foreigners coming to the UAE for visas, thereby, boosting the emirate's realty sector.

The official said "the new mechanism suggests that property owners to establish a company in the free zone and then the company will own the property which will let the property owner who owns the company to obtain a residence permit on the basis of ownership of the company, not the property."

However, property owners must meet specific requirements to be able to establish the company. The official added that the residence visa will be valid as long as the ownership of the company is valid.

Some analysts say the law though will help the real estate market, it will not solve all of the real estate problems in Dubai.

Anti-tobacco law approval by cabinet soon

Dr. Hanif Hassan Ali, UAE Minister of Health, and Chairman of the Health Council, emphasised that the council continues to study and examine the required recommendations to raise the health services in the UAE and achieve the strategic national goals and objectives.

"The council has lately examined the recommendations to develop medical practices, serve the ambitions of the medical staff and health services providers and care for the patients of all public and private health facilities in the UAE", said the minister while chairing the Health Council meeting in Dubai.

The meeting made the final review the anti-tobacco executive by law of the federal decision No. (15) of 2009 and decided to present it to the cabinet for approval.

The council also discussed the health survey for the emirate of Dubai and the unification of the medical staff licensing system in addition to the project of the health research handbook.

The Minister stressed the importance of speeding up the unified system for medical licensing to begin with doctors and followed by the licensing of other establishments and resources.

Another meeting will be held soon with representation from the health authorities in Abu Dhabi and Dubai.

The health council also approved the health research handbook to be printed and distributed to all the competent authorities and organizations as a guideline to determine researches and statistics in the healthcare field in the UAE.

Dr. Salem Al Darmaki, Acting Undersecretary of the Ministry of health and member of the health council, said that the council has conducted several studies which led to a number of ministerial and cabinet decisions about certain health programs and projects.

Eida cancels thousands of ID applications

The Emirates Identity Authority (Eida) last week cancelled 5,000 applications of candidates who missed their second consecutive registration appointment.

According to a news report in Gulf News, the application fee of such defaulters has been forfeited by the authority. “The cancellation of application means the entire pre-registration process has been cancelled; when they do the process again, definitely they have to pay the fee [again],” Dr Ali Al Khoury, Director General of Eida, has been quoted by the daily today.

According to the official, Eida gave the defaulters a second chance by rescheduling their appointment after applicants failed to turn up the first time. Those who missed the second appointment too will now have to go through the whole process once again, he said.

Al Khoury said the authority had to take strict action because many people fail to turn up for registration on appointment. “They waste their time and others’ too,” he said.

UAE ID card is must for all children

However, kids are not required to be present in person for the registration National Identity Cards for children under 15 years of age has been made mandatory.

The Emirates Identity Authority (Eida) has confirmed that ID cards will henceforth be mandatory for children under 15, apart from them being registered in the population register, reported 'Gulf Today'.
Until now children only had to be registered in the population register. ID cards were not a necessity.
Eida will shortly restructure the procedures of registration in the population register and issuance of ID cards for kids at the designated typing centres.
However, children will not be required to be present in person for the registration, Eida added.
Documents required include: Valid passport; valid residency; coloured photograph with light blue background (size 3.5x4).
The registration fee will be Dh50, in addition to Dhs70 services charges, Eida said.

More than 60% of UAE employees want a new job

survey reveal 23% participants are very optimistic and believe this is the best time to be on the lookout Even though 2011 may not be a high growth year and a time when employers remain in command, more than half of employees in the UAE would like a new job.

According to an online poll run by a popular news paper, more than half of the workforce in the country has plans on looking for a new job. The survey reveals that 61 per cent of the employees in the country are looking to change their job.
According to the poll conducted over the past couple of weeks, almost a quarter (23 per cent) of participants are very optimistic on the job front and believe this is perhaps the best time to be the lookout for a new job. On the other hand, dissatisfaction runs high in more than a third (38 per cent) of the respondents, and they cite that as a reason of looking for better avenues. “I am unhappy with my current job,” they said in the online survey.
Despote this, ther are a those that prefer to sit on the sidelines for the moment as they are either happy in their current role, or fear jobs are still scarce in the market and that it isn't worth their while risking their current job to get a new one.
According to 16 per cent of the respondents, a job in the hand is too precious to risk whereas another 23 per cent said that they are happy in their current position.
Discontentment with salary stagnation seems to be high on the agenda of many people. “I’ve not got any hike for the past three years. There has been no bonus as well,” commented a respondent. High salary satisfaction in the UAE seems low in the current market scenario.
“The UAE recorded 3 per cent of respondents with high satisfaction, 50 per cent with medium and 47 per cent with low. Elsewhere in the Gulf and wider Middle East area, a peak of 5 per cent of professionals highly satisfied with their salaries was witnessed in Kuwait and a low of just 2 per cent of professionals highly satisfied in Jordan and Lebanon amongst other countries,” Lama Ataya, Chief Marketing Officer Bayt.com told this website, explaining the trends revealed in one of the jobs site's surveys.
According to a study by Gulf Talent, the UAE and the entire region at large is expected to grow this year, which may give hope to those looking for a change.
“Across the region, anecdotal evidence suggests slowly rising business confidence which should help accelerate economic activity and with it employment. Obtaining bank lending and collecting customer payments, however, remain two key challenges for many businesses, preventing a full‐scale recovery,” it said.

UAE not planning to cap residence visa, says Al Mansouri

Based on indicators in the first five months of 2011, the UAE gross domestic product is expected to grow between 3 to 3.5 per cent this year, Sultan bin Saeed Al Mansouri, Minister of Economy, said on Wednesday.

Speaking to reporters on the sidelines of the 21st meeting of GCC ministers for planning and development in Abu Dhabi, Al Mansouri said the GCC invitation for Jordan and Morocco to join the group would, if takes place, contribute to expanding the GCC Common Market and harnessing the huge human, investment and financial resources available in the eight countries.

“The UAE is not thinking of capping the residence of foreign workers in the UAE,” the minister emphasised, calling for creating a thorough advanced statistical system to provide accurate data on the demographic structure and workforce.

He disclosed that the ministry had prepared a list of commercial agencies that would allow traders to import goods from the origin producers directly without referring to the local agents.

The move, he added, aims at provision of commodities at local markets directly at lower prices in a bid to curb soaring prices.

He said the list would be submitted to the federal cabinet within few weeks for approval.

GCC set to remain reliant on expat labour

Gulf hydrocarbon producers will likely remain heavily reliant on expatriate labour given the relatively high growth in their economies and the shortage of skilled manpower in their native population, experts said on Wednesday.

Although Saudi Arabia is planning to enforce a partial six-year limit on the stay of expatriates in some of its firms in a bid to tackle festering unemployment, a similar move is unlikely in the UAE and other high-income members of the six-nation Gulf Cooperation Council (GCC) given their low jobless rates.

The six-year limit announced by Saudi labour minister Adel Faqih on Monday sent brief shivers across the large foreign community in neighbouring countries before Riyadh issued a statement on Tuesday clarifying that the decision would only affect local companies that do not abide by job Saudization plans.

In their comments , many expatriates in the UAE voiced concern that the Saudi decision could spread into other GCC members and some of them even went further by saying Indians and Filipinos could be the main victim.

Analysts doubted the Saudi plan would be fully enforced even on companies failing to adhere to job nationalization rules, dubbed by the labour minister “yellow and red” companies.

Those which support the programme are classified as “excellent and green” companies and will get “generous” government incentives.

“The decision will only apply to companies rated as yellow on the traffic light system they announced recently.…the color of a company depends on their Saudization ratio…. if it is too far low (i.e. red) then the company won’t be allocated any new employment visas for expatriates,” said Paul Gamble, head of research at the Riyadh-based Jadwa Investments.

“If it is yellow (not high enough) then there will be restrictions on visas(such as the one on people that have been here six years),… if it is green then the company can get the visas it wants,” he told.

Gamble said he believes there should be a full and detail policy announcement on the revised Saudization plan soon.

But he added that companies have been able to get round their quotas in the past, so it all depends how aggressively it is enforced.

“For those GCC countries where unemployment is very low – UAE, Qatar, Kuwait – the policy will not be considered. Elsewhere, they are likely to see how effective the policy is before deciding whether to follow it.”

Another Saudi-based expert ruled out a full implementation of the Saudi six-year limit on the grounds it could adversely affect the country’s economy.

“The minister needs to qualify his statement because if it includes all foreigners then those who heavily contribute to the local economy will negatively impact the output and productivity of the private sector,” said John Sfakiankis, chief economist at Banque Saudi Fransi.

“I don't expect that such rules, if implemented will change the dependence on expatriates as one laborer will be replaced by another……. structurally nothing will happen. I don't know if this might be replicated in the region but even if does it will not change the labor market structure and dependence on expat labor….such policies are misdirected.”

Clarifying the labour minister’s statements, a Saudi government spokesman said the six-year limit would affect only red and yellow firms, part of an aggressive job nationalization programme dubbed “Nitaqat”, to be launched in June.

"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 category," said Hattab Al-Anazi, official spokesman of the labour ministry.

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, quoted by local newspapers.

He noted that the measures would not affect domestic workers as their visas would be renewed without considering how many years they stayed in the country, the largest Arab economy and the world’s top oil exporter.

In a recent study, a prominent global organization said it expected the GCC nations to seek more foreign labour because of the sustained growth in their economies and lack of skilled national manpower.

The Swiss-based International Organization for Migration (IOM) estimated at more than 16 million expatriates live in the GCC, an increase of nearly 20 per cent over their number in 2005.

“The high growth in foreign labour in the GCC is due to several factors including the national demographic structural imbalance, and the steady growth in most sectors of their economies such as services, real estate and trade,” it said.

“These countries will continue to rely on Arab and international labour in the future to ensure their needs of skilled workers and expertise.”

The study gave no breakdown but Saudi Arabia has the largest number of expatriates in the GCC, estimated at around 8.4 million. The UAE has over six million foreigners while the rest are based in Kuwait, Qatar, Oman and Bahrain.

Asians, mainly from India, Pakistan, Bangladesh, Afghanistan, Sri Lanka, Indonesia and the Philippines account for more than half the expatriate community in the GCC, which controls just over 40 per cent of the world’s recoverable oil wealth and a quarter of the global gas resources.

Foreigners began streaming into the Gulf nearly half a century ago when the discovery of oil kicked off one of the largest infrastructure construction drives in history. The drive has largely receded but regional nations continue to be heavily reliant on expatriates as more experienced and less costly labour.

In another study, the GCC’s private sector itself said it expected member states to hire more foreign workers in the future because of higher growth rates.

Given their heavy reliance on expatriate workers, the GCC countries should prepare for such growth by taking measures to regulate the movement of foreign labour within them, the Saudi-based Federation of the GCC Chambers of Commerce and Industry (FGCCI) said early this year.

The report expected flow of foreign direct investment into the GCC to pick up from around $48 billion in 2009 to $64.4 billion in 2010 and $81.3 billion in 2011. It projected private capital to swell from around $50.7 billion to $55.9 billion and nearly $68 billion in the same period.

“The job market requirements in the GCC states are projected to record sharp growth in the coming years due to an expected expansion in the regional economies……..demand for qualified labour, whether nationals or expatriates, will largely increase,” it said.

“At the same time, pressure from international labour groups will gain momentum and this should prompt regional nations to adopt flexible laws and regulations that will take into consideration the interests of all parties and meet the demands of their membership in the World Trade Organization.”

GCC states have often been urged to support the private sector as their only means to absorb the rapid rise in national job-seekers on the grounds the public sector has become saturated and is not growing enough. Another reason is that the private sector is dominated by expatriates given the preference by nationals of government jobs for more attractive financial benefits.

According to a joint study by National Bank of Kuwait and International Bank of Qatar, the number of national employees in the pubic sector stood at nearly 50 per cent of the total work force in Saudi Arabia and as high as 88 per cent in Qatar, 85 per cent in the UAE and 82 per cent in Kuwait.

“The GCC countries face two serious challenges in the coming decade…they include their ability to create enough jobs for their people and the possibility of the return of large deficits to their budgets,” it said.

“The public sector is expected to have a limited capacity to absorb new employees and its ability could weaken further in the future as it has become saturated and a possible drop in oil prices could curb high public spending and push the budgets of member states into shortfalls again.”

The study said such challenges should prompt the GCC to take measures to encourage the private sector to absorb millions of nationals.

“The GCC countries must allow the private sector to play a bigger role in the domestic economy with the aim of creating sufficient jobs for nationals…it also should be enabled to become the main provider of public services instead of the government…to do so, GCC governments must adopt policies that will facilitate the expansion of the private sector and remove unnecessary barriers for investors…despite some progress in this regard, a lot more needs to be done.”