Emiratis steer clear of taxi-driving jobs



SHARJAH // An attempt to recruit Emiratis as taxi drivers in Sharjah has been a "complete failure", according to a senior transport official. Despite embracing a programme of Emiratisation, the Sharjah Public Transport Corporation (SPTC) said all of the nearly 20,000 taxi-driving positions in the emirate continue to be filled by expatriates. Emiratis were actively recruited and promised higher wages relative to those of other nationalities, although SPTC officials would not give details.

Mohammed al Shamsi, the chairman of the board of directors of the SPTC, told the Sharjah Consultative Council the results were disappointing. "We admit this whole campaign was a complete failure," he said, responding to a question from the council member Abdullah Sultan bin Khadim about the progress of Emiratisation. "We have tried several times, and I will tell you that we shall continue trying."

Mr bin Khadim asked why taxi drivers' jobs were mostly dominated by Pakistanis and said the programme had failed to take hold as it should have. "It is dangerous to put the emirate's whole transport sector in the hands of just one nationality," he said. "Imagine if there is a problem with such a nationality. The whole public transport services would crumble." "There are many nationals of this country who don't have jobs and would manage to do the driving job but are not given a chance or encouraged," he continued.

Officials said there had been almost no Emirati interest in such jobs. Mr al Shamsi said that since the SPTC launched the Emiratisation process among taxi drivers almost five years ago, only one national had enquired about a position as a driver. "He called in the evening saying that he wanted a job as a driver, and in the morning, we called him back - he said he didn't want the job anymore," Mr al Shamsi said. "We asked him why and if he had got another job - he said he was a national and was content to remain unemployed if he didn't get a decent job as a national."

However, he added that the SPTC had achieved 78 per cent Emiratisation in administrative posts, which he said was an impressive statistic. Sharjah is not the only emirate that has tried to hire more Emiratis in the transport industry. Last summer, TransAD, Abu Dhabi's taxi regulator, advertised jobs for retired Emiratis in Arabic-language newspapers, urging them to apply to be taxi and limousine drivers.

Huda al Kaabi, spokeswoman for TransAD, said such drivers could be ambassadors for the capital, sharing their knowledge of the nation's culture and history. At the moment, the seven private firms operating cabs in the emirate rely on recruitment from countries such as Pakistan, Egypt, Syria, Bangladesh, Nepal and the Philippines. In March, a senior project director for Serco, which operates the Dubai Metro, said the company wanted 30 per cent of Metro jobs to go to Emiratis. Nationals would fill supervisory and managerial roles, project director Paul Anderson said.

In other business, the council member Maryam Salem al Murshada asked SPTC officials to explain delays in establishing a separate lane for large vehicles in the emirate, a move designed to reduce traffic congestion and accidents. Abdullah Mohammed al Zarri, the director general of SPTC, said that the agency already had organised a full study on the project, but that it was still awaiting a response from Dubai's Roads and Transport Authority.

@Email:ykakande@thenational.ae

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Company profile

Name: Dukkantek 

Started: January 2021 

Founders: Sanad Yaghi, Ali Al Sayegh and Shadi Joulani 

Based: UAE 

Number of employees: 140 

Sector: B2B Vertical SaaS(software as a service) 

Investment: $5.2 million 

Funding stage: Seed round 

Investors: Global Founders Capital, Colle Capital Partners, Wamda Capital, Plug and Play, Comma Capital, Nowais Capital, Annex Investments and AMK Investment Office  

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

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Starring: Nicole Kidman, Liev Schreiber, Jack Reynor

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  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
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  • Sep 1, 2016 Beat Japan 2-1 (away)
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Age: 33

Favourite quote: “If you’re going through hell, keep going” Winston Churchill

Favourite breed of dog: All of them. I can’t possibly pick a favourite.

Favourite place in the UAE: The Stray Dogs Centre in Umm Al Quwain. It sounds predictable, but it honestly is my favourite place to spend time. Surrounded by hundreds of dogs that love you - what could possibly be better than that?

Favourite colour: All the colours that dogs come in

Other workplace saving schemes
  • The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
  • Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
  • National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
  • In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
  • Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.