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Impact Of Immigration On UAE

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Published: Mon, 15 May 2017

Since 1973 there have been a high number of recruitments in the UAE. The reason behind the increased number of recruitments in the UAE is the exploitation of oil done in the region 1973. Oil has been a huge natural resource serving the economy of the UAE to a great extent. The foreign population accounted in the UAE to a count of 75% from the total population. When comparison is made from the labour market the count is 90%. This indicates the increased migration of foreign nationals in the UAE (Almalki, 2007). The system of migration of the individuals is not of permanent nature. The nature of migration is temporary but as the situation presents it is clearly reflected that a large number of foreign individuals spend many years working in the country. The following paper discusses the impact of the immigration on the labour market in the UAE. The paper discusses the theories which have been presented till date concerning the immigration of individuals from one country to another and the impact on the labour market of the other country. The paper discusses the actual scenario of the labour market and the theoretical aspect of it. The UAE has reported to be serving 13 percent of the population of the world (corresponding to the labour migrant population). As per the records of 1990 millions of people have been reported to be migrating to the UAE. The recruitment of labours was a common trend even before the Second World War. However, the main milestone which occurred was during 1973 when oil crisis took place. After the oil crisis occurred there was major recruitment in the UAE.

Literature Review

The movement of the individuals from different societies and cultures had a great influence on the labour market. The labour market now consists of business and organizations unified by people from different cultures and organizations. The reason which contributes to the migration of individual is to increase the earnings. Further the economy of the region is dependent on the manner in which the individuals perform in different business in the regions. As per the impact on the economy of the UAE is concerned the immigration of individuals has helped in the development of economy. It has been noticed in all the years that the availability of a large number of resources and the effort taken by the employees in order to exploit the resources has contributed to the development of economy of the region. The immigrants contribute to the working of different organizations and in different sectors. The count of immigrants is so high and the wide spread functioning of the immigrants in different organizations have lead to uniform development of all the sectors. The migration process started due to the availability of the oil and relates resources (Migration, 2006). However, as the present scenario reflects there has been development in all the sectors in a uniform manner. The technological advancements of the region attracted many immigrants which lead to the development of the UAE as a major technology hub. As a result of the migration of foreign individuals the region has developed and the resources of the country have been utilized to the maximum extent possible. However, one of the drawbacks of large number of immigrants has been that the native population of the region is less in number in comparison to the immigrants. Even though the population is diverse the people living in the UAE have preserved their culture and the way the business is operated in the region. Some of the main points which have been noticed concerning the impact t of immigrants on the economy are as follows:

As an average result the natives of the UAE have gained advantage due to the functioning of the immigrants. This is because the immigrants have helped in the improvement of the productivity of the country and the increase in the income.

On properly analyzing the fiscal influences of the immigration it has been concluded that the influence which the immigrants have on such matters is positive and modest.

If the immigrants who have arrived in the UAE are skilled it is highly probable and has also been noticed that they contribute to the innovation in different industries and therefore have a positive impact on the economy of the region.

The immigrants in the UAE have become a critical part of the workforce in the UAE and they have contributed to a great deal to the advancement of technology in the UAE. In some of the occupations in the UAE the immigrants have a large share and contribution. Some of the immigrants work in the UAE as entrepreneurs which has further developed and improved their economy. The immigrants who further reside in the UAE adopt the culture of the emirates and therefore their culture flourishes further through generations (Appleyard, 1989). One of the important impacts which have been noticed is that in the long run the UAE would be benefitted through the working of the immigrants in the region. As a part of different researches concerning the impact of immigrants on the economy it has been deduced that even though the competition in the labour market would increase due to immigration but the benefits which come to the productivity and other aspects outweigh the competition. The impact cannot be deduced with certainty because it depends on the skills and performance of the workers in the regions. Therefore, there are different factors impacting the economy from the perspective of the immigrants. The performance of the immigrants also depends on the scenario of the market globally. There may be certain scenarios as per which the market is not well and therefore the performance of the immigrants is influenced.

Methodology

The method which has been adopted in order to conduct the research is primary research. A survey has been conducted in which both Emriti and Immigrants have been given a questionnaire in order to answer certain question which would help understand the influence of immigrants on the labour market from the perceptive of individuals. A questionnaire was prepared in which the respondents were questioned about their perception concerning immigration, the rules and regulations associated with immigration, the development of the UAE culture and its dependency on immigration. The following section presents the response which has been presented by the respondents in order to answer the survey. There were 100 respondents who participate in the survey among which 50 respondents were immigrants and the other 50 respondents were Emiriti.

Analysis

Please select your gender:

The bar graph represents the distribution of Emiriti and Immigrants on the basis of gender. As per the representation of the graph one axis reports the distribution on the basis of age of the emiriti and immigrants. In the age group of 18-25 years 30% of the people are Emirati and 8% of the people are Immigrants. In the age group of 26-35 years 30% of the people are immigrants and 20% of the people are emiriti. In the age group of 36-45 years 48% of the people are immigrants and 32% of the people are emiriti. In the age group of 46+ years 18% of the people have been reported to be Emriti and 14% of the people have been reported to be immigrants. As per the analysis of the graph it clearly reflects that the maximum number of immigrants is in the age group of 26-35 years and 36-45 years which is the age group of the workers or the labours.

Please select your age group

The above bar graph shows the gender distribution of Emriti and the Immigrants. The male population counts to 68% both in case of Emriti and in case of immigrants. The female population is also same both in case of emriti and in case of immigrants. The percentage count of females is 32% both in case of emriti and in case of immigrants.

2.1. What do you think is the major reason for permanent migration policy in the Middle East?

The survey then questioned the respondents concerning the reason which they think to be countable for the reason of permanent nature of migration policy.The answers to the question included four options which were : labor shortage, small number of population, less education in comparison to other countries and due to the oil crisis of 1973. 26% of Emriti responded that it was due to shortage of labor, 26% of Emriti responded it was due to smaller population, 20% of Emriti responded it was due to the less education in comparison to the other countries, 28% Emriti responded it was due to the crisis of oil in 1973. The immigrants had different opinions concerning the different options which were made available to them. 30% immigrants responded it was due to the shortage of labor, 16% responded it was due to the small population, 22% responded it was due to the less education in comparison to other countries and 32% of immigrants responded it was due to the oil crisis in 1973.

2.2. The regulated temporary migration system in UAE has a crucial impact on the lives and the working conditions on the foreign workers in the country

The respondents were questioned about the influence of migration system on the immigrants. Among Emiriti 16% of the respondents strongly disagreed,16% disagreed,4% neither agreed nor disagreed,44% agreed and 20% strongly agreed. Among the respondents who were immigrants 16% strongly disagreed, 12% disagreed, 18% neither agreed nor disagreed, 26% agreed and 28% strongly agreed.

2.3. Do you agree that due to the immigration policies in UAE, labor cost in UAE relative to other countries and the total cost of doing business in the country is not that high?

The respondents were questioned concerning the cost of labor in the UAE and its dependency on immigration. They were questioned if they agreed that due to the policies of immigration the cost was not much high in comparison to the other countries. Among the Emriti respondents 12% of the respondents strongly disagreed,42% disagreed, 20% neither agreed nor disagreed,10% agreed,16% strongly agreed. Among the respondents who were immigrants 12% strongly disagreed, 12% disagreed, 8% neither agreed nor disagreed, 44% agreed and 24% strongly agreed.

2.4. Do you believe that the presence of a majority of low cost labor (semi-skilled or unskilled) lowers the average cost of production, have successfully evaded so called “Dutch Disease (which affected in failure of competitiveness due to over-evaluation of exchange rate”?

The respondents were questioned concerning the reduction in the Dutch disease. Among the Emriti respondents 44% strongly disagreed, 42% disagreed,8% neither agreed nor disagreed,6% agreed, and 0% strongly agreed. Among the immigrants 2% strongly disagreed, 12% disagreed, 18% neither agreed nor disagreed, 44% agreed and 24% strongly agreed.

2.5. Due to the fact that currency of UAE is much higher as compared to the countries from where most of the migrants come in UAE, immigration has become so prominent?

The respondents were questioned if there was high immigration in the UAE due to the high value of currency of the region. Among the Emriti respondents 2% strongly disagreed, 12% disagreed,4% neither agreed nor disagreed,38% agreed, and 44% strongly agreed. Among the immigrants 4% strongly disagreed, 8% disagreed, 2% neither agreed nor disagreed, 52% agreed and 34% strongly agreed.

2.6. Do you believe that immigration policy has given a chance to UAE and other Gulf countries to experience a stronger and a better exchange rate in case of any of the goods and services as compared to the global market?

The respondents were questioned if they believed that the exchange rate would improve in the UAE and gulf countries if given proper chance. Among the Emriti respondents 28% strongly disagreed, 38% disagreed,8% neither agreed nor disagreed,12% agreed, and 14% strongly agreed. Among the immigrants 2% strongly disagreed, 10% disagreed, 6% neither agreed nor disagreed, 48% agreed and 34% strongly agreed.

2.7. Do you believe that as UAE has cheap labor from the immigrant countries, this help UAE to promote creation of employment at the managerial level?

The respondents were questioned if the cost of labor was cheap in the UAE in comparison to the immigrant countries. Among the Emriti respondents 32% strongly disagreed, 32% disagreed,8% neither agreed nor disagreed,12% agreed, and 16% strongly agreed. Among the immigrants 10% strongly disagreed,14% disagreed,14% neither agreed nor disagreed,36% agreed and 26% strongly agreed.

2.8. Do you believe that it is only because of the immigrant population from various knowledgeable countries, it was possible for UAE to grow from an underdeveloped poor economy to one of the highest growing economies in the world?

The respondents were questioned if it was due to the immigrant population that transformation took place in the UAE society. Among the Emriti respondents 42% strongly disagreed, 30% disagreed,12% neither agreed nor disagreed,6%agreed. Among the immigrants 10% strongly disagreed,0% disagreed,6% neither agreed nor disagreed,8% agreed and 56% strongly agreed.

2.9. Do believe that due to a high level of immigration in UAE, cultural and social values of UAE have changed to an you extent that either westernization or Asian culture has overpowered the cultural values of UAE?

The respondents were questioned if they believed that due to immigration there has been change in the culture of the society. Among the Emriti respondents 6% strongly disagreed, 6% disagreed,8% neither agreed nor disagreed,40% agreed, and 40% strongly agreed. Among the immigrants 8% strongly disagreed,6% disagreed,8% neither agreed nor disagreed,40% agreed and 40% strongly agreed.

2.10. Do you believe that the economic, social, and cultural life of people living in UAE will become much better if immigration in the country should be limited to an extent?

The respondents were questioned if they believed that limiting immigration would influence lives to certain extent. Among the Emriti respondents 16% strongly disagreed, 6% disagreed,16% neither agreed nor disagreed,38% agreed, and 24% strongly agreed. Among the immigrants 42% strongly disagreed,40% disagreed,16% neither agreed nor disagreed,38% agreed and 24% strongly agreed.

Results

The characteristic features which attracted most of the individuals to work in the Gulf countries was the wealth of the region, the small population and shortage of labour. These features attracted individuals to migrate to the UAE. There have been several reasons which contributed to the migration of individuals to the UAE. The important aspect which need to be analyzed is the contribution which is made by the immigrants to the labour market. The individuals who migrate to the UAE are from different nationalities and work in different domains of work areas. As per the analysis of the survey responses it seems that the perception of the Emiriti and the perception of immigrants varies on certain aspects concerning immigration and the rules and regulations associate with it. In some of the questions such as change in culture of the society and improvement of the UAE there is a wide difference in opinion. On the other hand, in some of the questions such as role of currency in immigration an approximately similar opinion has been noticed.

Conclusion

The UAE has been known for all different industries. The immigrants who came to the UAE functions in different industries in the UAE such as information technology, construction, oil and petroleum. The impacts which have been noticed on the labour market are varied. There have been positive as well as negative effects on the labour market (Migration & States, Arab Migration in a Globalized World, 2004). However, the major impact which has been noticed is on the economy and the cultural diversity of the UAE. The difference in skill set of the individuals and the difference in the cultures of the individuals have contributed to the diversity in the UAE society. The UAE is considered as a region where maximum opportunities can be grabbed by individuals. As a result of the availability of a large number of opportunities there have been a large number of migrants in the region.


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