Sheikh Mohammed announces unemployment insurance scheme

Sheikh Mohammed announces unemployment insurance scheme
Sheikh Mohammed announces unemployment insurance scheme

The UAE News report: The UAE has introduced a new insurance scheme, which will protect employees against job loss.

Taking to Twitter after chairing a UAE Cabinet meeting on Monday, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, said the unemployment insurance scheme will offer a cash amount for a limited period of time to the insured person who suddenly loses his/her job.

The system will be implemented through insurance packages. An insured employee will be compensated for a certain period of time till he or she finds another job.

“The aim is to enhance the competitiveness of the labour market in the UAE, protect employees and establish a stable work environment,” tweeted His Highness Sheikh Mohammed.

The law aims to enhance the competitiveness of Emiratis in the job market, as well as “attract the best international talent to the UAE”.

Sheikh Mohammed or his office did not announce further details about the scheme.

According to the International Labour Organization, unemployment insurance schemes are implemented in both emerging and advanced economies to protect employed individuals against the risk of job loss.

The UAE’s move is the latest in a string of reforms announced in recent months to attract and retain global talents. A five-year Green Visa announced recently to attract skilled professionals, freelancers, investors and entrepreneurs offers longer flexible grace periods that reach up to six months to stay in the country after the residence permit is cancelled or expired.

The country has also introduced a job-seekers’ visa, allowing foreigners to come to the country specifically to seek employment.

Housing programme

The Cabinet also approved a housing programme of Dh11.5 billion to benefit 13,000 Emirati families.

The housing loans worth Dh11.5 billion have been introduced after adopting a new housing policy as part of the Zayed Housing Programme, Sheikh Mohammed said as he chaired the Cabinet meeting.

New merger

The Cabinet also issued a resolution merging the Zakat Fund and the General Authority of Islamic Affairs and Awqaf into one entity, to be managed by a new board of directors.

“We have a great opportunity for the growth of the endowment sector and growing the sources of Zakat, and the new authority has a big responsibility to develop this sector,” Sheikh Mohammed said.

Emiratisation boost

A new system to enhance Emiratisation in the private sector has also been approved to increase Emiratisation rates by two per cent annually in skilled jobs in the private sector. The rate will reach 10 per cent by 2026. The new system will be implemented in cooperation with Nafis, a federal program to increase the competitiveness of Emirati human resources and empower them to occupy jobs in the private sector.

Nafis was launched as part of ‘Projects of the 50’ to accelerate the UAE’s development journey and boost the economy.

Education governance

A governance system for higher education institutions and national universities has been introduced to provide a greater flexibility and independence for academic institutions. Meanwhile a resolution has been approved allowing the publishing of the names of violators of financial markets and the Securities and Commodities Authority.