UAE Plans to Introduce Unemployment Insurance for All Workers

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A construction worker on the site of a commercial property development in the Jumeirah Village Circle district of Dubai, United Arab Emirates, on Tuesday, Feb. 22, 2022. A government committee set up before the pandemic enlisted some of Dubai’s largest developers as members to try to manage supply and demand in the property market and ensure that state-owned businesses don’t crowd out private builders.

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The UAE to provide unemployment insurance to all workers in the country, state-run WAM news agency reports.

  • Plan is part of efforts to attract and retain employees by reducing business risks
  • Employees who lose their jobs will receive cash support for a period of time until the employee finds another job, Gulf News reports, citing Abdulrahman Al Awar, Minister for Human Resources and Emiratisation
  • As of 2023, employees will have to contribute to unemployment insurance plan through insurance companies
  • Unemployment insurance fees may range between 40 dirhams and 100 dirhams per year; plan will include paying 60% of the worker’s basic salary for a certain period
  • UAE workers in public and private sectors to benefit from program; it applies to all nationalities
  • NOTE: The UAE, made up of seven emirates including Dubai and Abu Dhabi, has been introducing new labor regulations that make it easier for foreigners to work
    • Foreign residents make up more than 80% of the population of the UAE and have been a mainstay of the economy
    • UAE Cabinet Approves New Entry, Residence Scheme for Foreigners

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