VZCZCXRO8100
RR RUEHDE RUEHDH RUEHDIR
DE RUEHAD #0367 1030603
ZNR UUUUU ZZH
R 130603Z APR 09
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC 2351
INFO RUEHDE/AMCONSUL DUBAI 8233
RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE

UNCLAS ABU DHABI 000367 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ELAB ECON PGOV SOCI AE
SUBJECT: LACK OF EDUCATION AND SKILL HINDERS EMPLOYMENT FOR UAE 
NATIONALS 
 
REF: ABU DHABI 271 
 
¶1. (SBU) Summary:  With 80 percent or more of its residents 
expatriates, the UAE Government is very concerned about providing 
sufficient jobs for Emiratis, who face increasing employment 
challenges.  Recent studies show that lower education, skill and 
experience hinder the "Emiratization" process and contribute to 
unemployment despite UAEG efforts.  Although stereotypes about poor 
work ethic may sound discriminatory, Emirati employers are actually 
less likely than expatriate managers to hire Emirati nationals, 
according to field research by UAE University.  Despite government 
efforts to promote the hiring of Emiratis, much unemployment remains 
voluntary.  End Summary. 
 
¶2. (SBU) Official figures put the total UAE population at 4,106,427, 
of which foreign employees and their families make up more than 80 
percent; it is likely this understates the percentage of the UAE 
expatriate population.  As a result of this demographic imbalance, 
the UAEG has sought to promote the employment of nationals (through 
"Emiratization") to combat rising unemployment among UAE nationals. 
According to a study conducted by the National Human Resources 
Development and Employment Authority (TANMIA), the UAEG body tasked 
to implement Emiratization, UAE national unemployment reached 13.5 
percent in 2008.  The study revealed that poor educational 
qualifications hinder the Emiratization process: 84 percent of the 
total Emirati labor force of 428,391 has only completed secondary 
education or less (38 percent completed secondary school, 22 percent 
middle school, 8 percent primary school only, 6 percent have no 
formal education and 9 percent are illiterate).  While many 
expatriates are unskilled laborers, statistics show that Emirati 
education levels largely mirror those of the resident expatriate 
demographic.  Thus, while the UAE is trying to create a modern 
economy, only about 75,000 Emiratis have some form of tertiary 
education.  (Note:  And that's about the number of millionaires in 
the UAE.  End note.) 
 
¶3. (SBU) In addition to undertaking educational reform, the UAEG has 
taken steps to promote national employment in both the public and 
private sectors.  In the government sector, expatriates have often 
been replaced by nationals by government decree.  In the private 
sector, the UAEG set annual Emiratization targets of 4 percent in 
banking, 5 percent in insurance, and 2 percent in a trading company 
that employs 50 workers or more, 100 percent of public relation 
officers in a company with over 100 workers, and 100 percent of 
secretarial jobs in a company with 50 workers and above.  The 
government also gives financial rewards to companies that meet 
Emiratization targets.  (Note: Reftel comments on how some companies 
cook the books to meet this target, or pay Emiratis to be on their 
roles without working.  End note.) 
 
¶4. (U) Despite these efforts, Emiratization remains a challenge. UAE 
Vice President, Prime Minister and Dubai Ruler Sheikh Mohammed bin 
Rashid Al Maktoum recently complained that Emiratis made up only 54 
percent of UAE ministry employees and just 25 percent of staff in 
other federal departments.  The progress of Emiratization in the 
private sector is even worse.  According to press reports, only 
13,000 Emiratis are currently employed with private companies, about 
0.4 percent of the sector's workforce. 
 
¶5. (U) A recent UAE University study based on interviews with 120 
senior private sector managers revealed that 73 percent of Emirati 
and expatriate employers report Emiratis lacked necessary education, 
job skills and experience.  Employee attitudes were also reported to 
be problematic.  Almost thirty percent of respondents said Emiratis 
had unrealistic salary expectations; 17 percent said they had 
unrealistic promotion expectations; 13 percent said they believed 
Emirati staff would be unproductive and unmotivated.  Somewhat 
surprisingly, Emirati employers were more concerned than expatriates 
about how hiring local staff would affect their businesses, with 86 
percent concerned that local employees were not qualified, compared 
to 61 percent of foreign employers.  Recognizing the importance of 
Emiratization quotas, 12 percent of foreign employers said they were 
looking for Emiratis to hire regardless of their qualifications. 
 
¶6. (SBU) Comment:  In addition to the challenges of developing 
educated and qualified Emirati employees, many contacts report that 
the government's efforts are challenged by nationals' attitudes 
about work.  UAE nationals still prefer jobs in the relatively elite 
and low intensity public sector over the burgeoning private sector 
(unless for a family concern).  Further, UAE nationals reportedly 
demand limited hours and higher salaries and benefits than foreign 
workers.  While some hope the economic slowdown and new labor 
policies will promote Emirati employment (reftel), it is clear the 
UAE has a long way to go before the majority of private sector 
employees are nationals.  End Comment 
 
OLSON