Unemployment benefit among support measures approved by Cabinet

Ministers have approved a series of measures to benefit Emirati families, including redundancy payments for unemployed citizens.

Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai, said the move was intended “to compensate the insured worker with a cash amount for a limited period in the event of unemployment”.

“The aim is to enhance the competitiveness of the labour market, provide a social umbrella for its workers, and establish a stable work environment for all,” he said.

Unemployment support payments were first set out last year when the government embarked on a major drive to encourage Emiratis to work in the private sector, where redundancies are more common.

The Cabinet, which met at Qasr Al Watan after the Eid Al Fitr break, also approved housing loans worth Dh11.5 billion ($3.13bn) for 13,000 Emirati families.

The loans are the latest step in the Sheikh Zayed Housing Programme that aims to ensure every Emirati can own a family home.

The Cabinet also formally approved the next stage of an Emiratisation drive. This will ensure that, by 2026, 10 per cent of employees in private sector companies will be UAE citizens.

Under the Nafis initiative, companies with more than 50 employees should have a 2 per cent Emirati workforce in the next year. This quota will be expanded each year until 10 per cent is reached.

In September last year, the government set a target of getting 75,000 Emiratis into private sector jobs. This included plans by the state to supplement private sector salaries, which tend to be lower than in the public sector.

Ministers also approved plans to publicly name companies that breach securities and commodities regulations, and detail their offences.

“The goal is to raise investment awareness and protect our financial markets, deter violators and ensure the protection of all investors,” Sheikh Mohammed said.

At present, companies regulated in the Dubai International Financial Centre free zone that breach laws and regulations are commonly named by the Dubai Financial Services Authority and Financial Markets Tribunal.

The Cabinet’s plan, which was not detailed in full, appears to be an extension of that practice.

In the environmental sector, Sheikh Mohammed said ministers approved the formation of the Emirates Council for Climate Action, led by the Minister of Climate Change and Environment Mariam Al Mheiri.

“The aim is to develop public sector plans to deal with the effects of climate change, adapt to its effects and follow up on the implementation of climate neutrality plans by 2050, which we have announced earlier,” he said.

“We also approved the establishment of the Emirates Council for Environmental and Municipal Work, with the membership of all municipalities in the country and a group of federal ministries, with the aim of exchanging experiences and proposing regulations and legislations that raise the level of municipal work at the federal level.”

Other decisions included merging the country’s General Authority for Islamic Affairs and Endowments with the Zakat Fund, as well as forming a new board to manage the organisation.

“We have a great opportunity for the growth of the endowment sector in the country and the development of Zakat resource,” Sheikh Mohammed said.

“The new authority has a great mission to develop this sector.”