The United Arab Emirates will shortly introduce a sort of unemployment insurance. The cabinet made the crucial announcement on Monday. This is the latest measure implemented by the Gulf nation to attract talent and investment as the region’s economic competitiveness heats up.
UAE Prime Minister and Vice-President Sheikh Mohammed bin Rashid al-Maktoum declared on Twitter, citing a cabinet resolution, that insured workers will be paid if they become unemployed for a short length of time. The Prime Minister of the United Arab Emirates is also the ruler of Dubai.
‘The goal is to increase labor market competitiveness, offer a social umbrella for employees, and create a stable working environment for everybody,’ according to the statement. It is unclear if the law would apply equally to both nationals and non-citizens living in the UAE.
Gulf states such as Kuwait, Qatar, Oman, and Saudi Arabia provide some type of unemployment assistance to their inhabitants. Not only that, but Bahrain offers a sort of unemployment insurance for non-citizen resident employees. Foreigners are permitted to remain in Gulf nations on the basis of employment, and the termination of employment requires the worker to leave the country.