UAE to introduce unemployment insurance in latest economic reform – The Peninsula

UAE to introduce unemployment insurance in latest economic reform – The Peninsula

Dubai: The United Arab Emirates will introduce a form of unemployment insurance, the cabinet said on Monday, the latest reform by the Gulf country as it strives to attract talent and investment.

Insured workers would receive some money for a limited time period if made unemployed, UAE Prime Minister and Vice-President HH Sheikh Mohammed bin Rashid Al Maktoum said on Twitter, citing a cabinet decision.

"The intention is to strengthen labour market competitiveness, provide a social umbrella for workers and establish a stable working environment for all," the statement said.

The statement did not specify whether this would apply equally to citizens and non-citizen residents in the UAE.

Permission to reside in UAE, where foreigners make up 85% of the population according to the IMF, has traditionally been tied to employment, and loss of job usually means the worker has to leave the country.

The UAE switched to a Saturday-Sunday weekend this year to move closer to global markets, and in the past 18 months has overhauled laws and regulations.

The cabinet also announced new quota targets for the employment of Emirati citizens in the private sector - a long-standing policy known as "Emiratization".

It wants to see Emirati nationals representing 10% of private sector staff in