News Summary Blog #1

Expats Face Challenges Finding Work in the UAE, Despite Buoyant Economy and Strong Job Growth

By: Chris Monsour

Link: http://www.ibtimes.com/expats-face-challenges-finding-work-united-arab-emirates-despite-buoyant-economy-strong-job-growth

1. The UAE has always been a world leader in the oil market and is one of the wealthiest states on the planet. While the UAE continues to grow in the oil industry, private and public business leaders within the country are focused on diversifying into other business industries and giving work to UAE citizens as opposed to foreigners. Expats make up a very large part of the UAE population. Throughout the years, expats have gone to the UAE primarily for the high salaries and lavish lifestyles often promised with working there, however that has all changed to allow the growth of the UAE's own citizens. In recent years, expats have mainly been sought out in the work place when specialization was needed. Today, the problem in the UAE regards expats being in high demand for work while private and public companies are doing all they can to continue to be fair to the citizens of the UAE.
2. This issue can be related to supply and demand. The expats are in demand of new jobs, however the supply does not match the demand. Because of this, there is an excess demand for jobs by expats within the UAE. As the UAE continues to diversify into different industries, the supply of jobs will eventually meet the demand for jobs forming an equilibrium growth situation, which is beneficial for expats looking for jobs, UAE citizens looking for jobs, and the UAE's economy.
3. An excess supply of UAE citizens in the job market was alarming to the government and because of this, priority was placed on UAE citizens when it came time to hire workers into new business positions. Over time, as the economy grew, UAE citizens began getting more and more educated and taking the jobs away from the expats. It grew to the point where expats were only needed when specialization came into play. As the UAE continues to diversify, the supply and demand of jobs for expats in the UAE will meet at its equilibrium point, making everybody happy in the process. This is not an overnight solution, however the UAE is working hard to ensure their plans of diversification are beneficial to everybody involved in the UAE labor force.