The United Arab Emirates (UAE) on Monday approved an unemployment insurance scheme to provide unemployed individuals with income support for a limited time period.
Vice President, Prime Minister, and Ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, tweeted that the move was intended “to compensate the insured worker with a cash amount for a limited period in the event of unemployment”.
He further adds, “The aim is to enhance the competitiveness of the labor market, provide a social umbrella for its workers, and establish a stable work environment for all”.
This was part of a series of measures announced during the Cabinet meeting, which met at Abu Dhabi’s Qasr Al Watan after the Eid-al-Fitr break.
Taking to Twitter after chairing a UAE Cabinet meeting on Monday, the UAE Vice-President 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 labor market in the UAE, protect employees and establish a stable work environment,” tweeted His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
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 canceled or expired.
The country has also introduced a job-seekers visa, allowing foreigners to come to the country specifically to seek employment.