The United Arab Emirates have cut oil production further in line with OPEC’s decision in mid-March. It is expected that real GDP growth will reach 4.6 percent in 2001, down from 6 percent in 2000, as falling oil prices and shrinking production quotas are reflected in the rest of the economy. The government will seek to reduce its expenditures on non-productive activities, while seeking to involve local and foreign investors in the development, operation and management of civil infrastructure. The Emirates are expected to press ahead with liberalization measures, including privatization and encouragement of foreign investment.

The UAE have been more successful than other Gulf economies in diversifying away from the oil sector. They have invested heavily in construction, transport, tourism, trade and finance. Nevertheless, the non-oil sector remains heavily reliant, both directly and indirectly, on oil income. In general, the Emirates have specialized in different non-oil sectors. Efforts to develop the non-oil sector have been facilitated by the government economic policy, including a free exchange rate system and a liberal trade regime; outward-oriented strategy that stresses private sector initiative within a framework of effective regulation.

Various measures have been taken to promote employment of UAE nationals and to curb foreign workers. These include strengthening skills development programmes, strict control of working permits for foreign workers and improving monitoring/ analysis of the labour market.

The Ministry of Labour and Social Affairs (MOLSA) of the United Arab Emirates places great emphasis on human development as a process to enhance the overall competency of the workforce and improve the competitiveness of UAE through an efficient workforce, higher workers productivity, fair working conditions and social security conducive to overall socio-economic development. The Minister of Labour and Social Affairs Mr. Matar Humaid Al-Tayer, was appointed in March 1997.

Four ILO-executed technical assistance projects, in the West Bank and Gaza, have been funded by various parties in UAE (the total funding amounting to US$5.5 million) as follows:

i. Production of Low-cost wheelchairs through Employment of Disabled Persons ($1 million; donor – H.H. Sheikh Dr. Sultan Bin Mohammad Al-Qassimi, Ruler of Sharja; operationally completed);

2. Establishment of Shaikh Khalifa Vocational Rehabilitation Center ($2 million; donor – H.H Shaikh Khalifa Bin Zayed Al-Nahayyan, Crown Prince of Abu Dhabi; ongoing);
3. Palestinian Employment Programme ($1.5 million; donor – H.H. Shaikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai; ongoing).
4. Establishment of Sheikha Fatima Bent Mubarak Vocational Rehabilitation Center for People with Disabilities and Youth with Special Needs in Hebron ($1 million; donor – Red Crescent Society for United Arab Emirates on behalf of Sheikh Fatima Bent Mubarak; Agreement to be signed shortly).

The Federation of the UAE Chambers of Commerce and Industry (FCCI) groups the six individual Chambers of Commerce and Industry of the six Emirates. Each Chamber enjoys an internal autonomy and applies different economic, social and legal policies. It is planned to organize, in October 2001, a national seminar for employers’ organizations on promotion of small enterprise development in the tourism sector. (UAE is presently the Deputy Employer Member of the ILO Governing Body.)

There are no trade unions in the UAE.

UAE is benefiting from a study for a comparative analysis of national legislations and practice in light of ILO core Conventions currently being undertaken in the Gulf Cooperation Council (GCC) States.

Fellowships were awarded for participation in the Turin Center training courses on "Promotion of ILO Declaration on Fundamental Principles and Rights at Work" (Turin, April 2000); and "Training of Trainers on International Labour Standards and the Declaration Reporting" (Bahrain, April 2001).

ILO organized, jointly with the Executive Bureau of the Gulf Cooperation council, a sub-regional training programme on vocational guidance in Dubai (April 2000) and provided technical contribution to the "National Conference on Technological Education and National Development" (Abu-Dhabi, April 2000).

Fellowships were awarded for participation in the following Turin Center training courses: "Improving the Performance of Private Enterprises" (May 2000); and "Strengthening Women Entrepreneurs’ Associations" (October 2000);

UAE is one of the GCC states benefiting from the assistance for establishing a unified labour market information system in GCC, which is carried out jointly by ILO and the Executive Bureau of the Council of the Ministers of Labour in GCC (2000-2001).

UAE participated in the "Comparative Analysis of International and National Standards on Occupational Safety and Health Workshop" (Beirut, April 2001).

ILO provided technical and financial contributions to the national workshop on "Major Industrial Accidents and the Effect on the Environment", which was organized by the Ministry of Social Affairs and Labour in May 2001: following the consultations during this workshop, ILO has been requested to formulate a project document on "Development of Occupational Safety and Health and Major Hazard Control".

UAE participated in the Arab inter-regional meeting on "The Promotion of Tripartism and Social Dialogue" (Beirut, October 2000).

National seminar for employers’ organizations on promotion of small enterprise development in the tourism sector (scheduled to be held in October 2001).

UAE has ratified nine ILO Conventions including eight core Conventions as follows:

• Convention No 29: Forced Labour, 1930
• Convention No.100: Equal Remuneration, 1951
• Convention No. 105: Abolition of Forced Labour, 1957
• Convention No.111: Discrimination (Employment and Occupation), 1958
• Convention No. 138: Minimum Age, 1973
• Convention No.182: Worst Forms of Child Labour, 1999

Since no workers’ organizations are allowed in UAE, it is difficult to promote social dialogue on the tripartite basis.

 Updated by CHW. Approved by RD. Last update: 3 August 2001.