Issued by the General Directorate of Residency & Foreigners Affairs-Dubai
www.manafezdubai.com
Smell of money could pinch smugglers
Issue 6
October 2014
A secured citizenship and identity
Technology Leadership
Impact of visa abolition
The Relocation Triad
The Global Talent Shortage
Smart choice for a smart living GDRFAD’s mobile application enables: Individuals:
• On arrival visa extension. • Dashboard with all entry permits and residency
applications that are in progress, active, expiring soon or have expired. • Generate barcode to enter smart gate at Dubai Airports. • New and renew sponsored residencies (citizens). • New and renew residency (wife & children). • Attaching required documents. New update: • New entry permit for assistant categories (citizens) • Family passport renewal bouquet (citizens). • Renew passport (citizens only). • MYID
Establishments: • • • •
Extending entry permits (tourist visas). Work entry permit renewal. Before arrival – entry permit cancellation. Printing of Ministry of Labor’s permits. New update: • Dashboard with all entry permits & residences overstays and the ones expiring within 30 days.
Other features:
• • • • • •
Payment gateway. Visa inquiry. News and activities. Amer Car services. User guide. Branches with location maps and contact details. • Multimedia section. • Contact Director General
Mobile application is available on all app stores. Search for: GDRFA Dubai or simply scan the QR code
• Toll free: 8005111
Welcome Message
GITEX Surprises T he General Directorate of Residency and
Foreigners Affairs in Dubai (GDRFA-Dubai) surprised the visitors of GITEX-2014 where it had made its biggest-ever participation in history. Top on the list is the world’s first 3D robot to answer queries from customers about visas and residency issues. The polyglot robot can be moved from one place to another as per our requirements to reach out our target audience. The robot will enable customers to remotely communicate with GDRFA employees instantly through audio and video streaming. We have ambitious plans to deploy this at Dubai International Airport and other places in phases after receiving the public response and assessing the impact on customer services. Another significant project that we unveiled at the world’s third largest ICT show in Dubai is an advanced version of AMR car which we launched in 2010 to serve customers within the Emirate of Dubai. The new electrically-powered version will serve passengers at Dubai International Airport, especially the large number of transit passengers. The new car has been developed to implement the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, to serve the passengers in general and transit travelers in particular.
We expect this to be creating a major economic impact on economic sectors like shopping, hotels, restaurants, car rental and others. These surprises are not new from GDRFADubai. In the past, it had unveiled several innovative products at GITEX like AMR car and Mobile visa which were the successful outcome of the ideas put forward by our employees. These innovations would not have been possible without our ceaseless efforts to encourage employees towards contributing to GDRFA success. The technological leadership that we enjoy is due to the support that the government accords to us and is the outcome of the continuous investment in the development of technologies for border control with security and facilitation being the keys to whole efforts. It is a challenge for us to balance the need to ease the travel experience while not comprising on security at our borders. The government is providing all the support to us in pursuing our goals and objectives.
Major General Mohammed Ahmed Al Marri Director General GDRFA-Dubai
|Manafez Dubai |October ٢٠١٤ | 1
GDRFA Message
GDRFA
in History
t
October 1971 Pursuant to an order promulgated by the then Ruler of Dubai, Sheikh Rashid bin Saeed Al Maktoum, two departments were established: Central Immigration Department and Ports and Borders Department
t
October 1972 The two departments were merged with the UAE’s Ministry of Interior and Federal Law No. 17 concerning the naturalization and passports was promulgated.
t
1973 Federal Law No. (6) concerning Immigration and Residency was promulgated as the first law regulating the entry and residency of expatriates in United Arab Emirates.
t
1977 The two departments were merged and the new Department shifted to a building in the ministries complex
t
1982 The Administration shifted to the present building during the tenure of Colonel Mohammad Al-Ghaith
t
2003 The building was completely refurbished during the tenure of Brigadier General Saeed Bin Belaila
t
1999 Naturalization and Residency Administration, Dubai, established a branch at Hatta Fort
t
1995 Jebel Ali Port branch was inaugurated
2 |Manafez Dubai |October ٢٠١٤ |
Our Vision The UAE to become one the safest and most secure countries in the world.
Our Mission To work efficiently and effectively to enhance the quality of life for UAE society through security, transit, rehabilitation, residency services and secure the safety of lives and property.
Our Values Justice t Work with team spirit t Excellence t Good cooperation t t Integrity t Loyalty Social responsibility t
Strategic objectives t Strengthening of security and safety t Ensure readiness and preparedness in disasters and crises t Enhancing public confidence in the effectiveness of the provided services t The optimal use of security information t Secure the provision of all administrative services in accordance with standards of quality, efficiency and transparency
To communicate with GDRFA: Location: Aljaffilya - Bur Dubai PO Box : UAE – Dubai 4333 Email: amer@dnrd.ae Toll Free Number: 04 3139999 - 8005111 Working Hours: 8:00 AM - 8:00 PM GDRFA-Dubai http:// www.dnrd.ae Dubai Airport Freezone http://www.dafz.ae Dubai Public Prosecution http://www.dxbpp.gov.ae Dubai Municipality https://www.dm.gov.ae
Department of Economic Development http://www.dubaided.gov.ae Department of Tourism and Commerce Marketing http://www.dubaitourism.ae Land and Property Department http://www.dubailand.gov.ae
Contents
GDRFA News GDRFA Photographes by: Abdulrahman Abdullah Sanjeev Kochan
GDRFA customer service centre opens at Dubai airport
Monthly newsletter issued by GDRFA-Dubai
P4
4935 illegal residents rounded up in 181 crackdowns P4
UAE News
PCLA honour companies, labour camps and employees
GCC nationals invests big in Dubai realty P 25
P 20
Middle East News Surge in Ugandans working in Middle East
Saudi Arabia detains 22,000 infiltrators each month
P 26
Honorary President Major General Mohammed Ahmed Almarri Director General
General Supervision Major General Obaid Muhair Bin Suroor Deputy Director General
General Coordinator Captain Khalid Al Rahma Editorial Consultant Ghassan Suleiman Creative Manager Mohammed Al Jarouf Executive Editor Mohammed Abdul Mannan
P 27
International News Foreign students are not ‘immigrants’
Strategic Technology Partner of GDRFA-Dubai EU illegal border crossings surge
P 32
Smell of money could pinch smugglers
P 30
Advertise with us Content, Production, Marketing & Advertising Nadd Al Shiba PR and Event Management Phone: + 9714 2566707 Fax: + 9714 2566704 Website
www.naddalshiba.com
info@naddalshiba.com
P 34 |Manafez Dubai |October ٢٠١٤ | 3
GDRFA News
GDRFA customer service centre opens at Dubai airport M ohammed Abdulla Ahli, Director Gen-
eral of Dubai Civil Aviation Authority (DCAA), and Major General Mohammed Ahmed Al Marri, Director General of the General Directorate of Residency and Foreigners Affairs in Dubai (GDRFA-Dubai), have formally opened a GDRFA customer service center in Terminal 3 at the Dubai International Airport. The centre provides all the services to customers 24/7. Mohammed Ahli said the customer centre comes in line with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai and directives of His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of DCAA and Chairman of Dubai Airports, for taking the customer service levels a few notches
up and apply global best practices for customer satisfaction. Major General Mohammed Al Marri said the center offers all the services provided by the GDRFA-Dubai, which includes renewal of passports of UAE citizens, entry permits, residency visas of all kinds, cancellation, renewal and extension of the residence permits and
issuance and renewal of Smart gate cards.Present at the ceremony were Major General Ahmed Mohammed bin Thani, Assistant Director General for the Airport Security at Dubai Police, Major General Obaid Mohair bin Suroor, Deputy Director General of GDRFA-Dubai, and other senior officials of DCAA, GDRFA-Dubai and Emirates Airlines.
GDRFA campaign fosters positive work culture T he Department of Positive Energy at the General Directorate of Residency and Foreigners Affairs in Dubai (GDRFA-Dubai) have recognized 65 of its employees through its ‘365 days of positivity’ initiative by the end of September.
The department is believed to be a first of its kind in the UAE and the region. The department, which was inaugurated in July, aims to promote positive thinking and come up with methods to enhance positivity 4 |Manafez Dubai |October ٢٠١٤ |
amongst the directorate’s employees so that they can create the best working environment for themselves. Mohammed Sultan Bin Thani, Organizational Excellence Consultant at the GDRFA-Dubai, said that the new department, headed by Lieutenant Ali Al Sharif, builds on the ideas put forward by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, about the importance of positive energy to success.
He said the GDRFA-Dubai made a conscious effort to apply the idea of positive thinking and that’s how the department was born. He added: “Positive energy has become part of many workplaces, but we are probably the only or one of the only organizations which created a department that is dedicated to actively finding ways and creating initiatives to promote positive energy. A happy employee is more productive, and this is what the department aims to do.”
GDRFA News
4935 illegal residents rounded up in 181 crackdowns T he General Directorate of Residency and Foreigners Affairs (GDRFADubai) caught 4,935 illegal residents – 4336 males and 599 females - in 181 inspections conducted during the first eight months of this year. Major General Mohammed Al Marri, GDRFA-Dubai Director General, lauded the performance of the department’s staff and their efforts in tracking down and apprehending violators of the law. He called on all sections of the directorate to discharge their duties with the spirit of teamwork which “positively reflects the quality of the services rendered to the public in a civilized manner”. Colonel Khalaf Ahmad Al Gaith, Assistant to the Director General for Follow-up on Illegal residents and Foreigners at the GDRFA-Dubai, said that they have widened the scope of their inspection campaign and have reached areas that are far from the city’s hub, such as Al Marmoum and Mirqab. He remarked: “We will not tolerate areas of Dubai becoming areas where illegals are concentrated. The main goal behind sending inspection patrols is to create a sense of security in the community.”
Colonel Khalaf Ahmad Al Gaith
The Deportation Section of GDRFADubai’s Investigations Department has also received a total of 12,471 illegals- 8,858 males and 3,613 femalesfrom the General Directorate of Residency and Foreigners Affairs of Abu Dhabi, Sharjah and other emirates, the Ministry of Labour, Dubai Police and those to be deported on court orders. The department received 84 reports from the public through Amer hotline. The public can help the GDRFA by passing on the information about illegals by calling Amer service on 8005111.
The Establishment Inspection Section of the Investigations Department carried out inspections in 2,894 establishments in Dubai — 2,206 in Deira and 688 in Bur Dubai. In these inspections, 175 illegals were caught, of which 124 were females and 51 were males.
There were 580 criminal reports handled by the department. The top criminal offences by illegals was working for another sponsor with 271 instances, followed by staying illegally in the country with 117 cases, forgery of official documents with 116 cases and employing workers that are not on your sponsorship with 79 cases.
“Sometimes our inspectors go to multiple establishments — six or seven in a row — and find no illegals, which is a great indicator that the awareness campaigns have worked,” he said.
He said that the numbers of illegals caught has declined because most employers refuse to employ illegals. This is result of awareness campaigns that GDRFA-Dubai have conducted in the previous years. In the eight months of this year, the awareness campaigns reached out to 1,002 establishments in Dubai.
Fifteen of these inspections were joint efforts between the GDRFA-Dubai and other government bodies such as Dubai Municipality, Ministry of Labour and the Department of Economic Development.
The Document Verification Department verified 26,384 passports during the last eight months, of which 605 were found to be forged. The GDRFA-Dubai conducted 55 workshops and courses that benefited 745 employees across the GDRFADubai. The number of disputes being reviewed by the Legal Affairs and Complaints section at the directorate stood at 1,830, of which 1,522 were settled. |Manafez Dubai |October ٢٠١٤ | 5
GDRFA News
14 million people entered through Dubai airports B etween January and August this
year, about 14 million people from 197 nationalities, including two million from the Gulf Cooperation Council (GCC) entered the Emirate of Dubai through the two international airports. Major General Mohammed Al Marri, Director General of General Directorate of Residency and Foreigners Affairs in Dubai (GDRFA-Dubai), in an interview with Ajman Radio, pointed out that Dubai Airports the month of August alone recorded entry of 1728000 passengers while the highest one day arrivals of 63000 people was witnessed on September 5.
6 |Manafez Dubai |October ٢٠١٤ |
He said the GDRFA-Dubai staff welcomes visitors to Dubai with open arms and minds in order to provide the best services which in turn results in more
tourists coming to Dubai, especially during holidays. He said the UAE was fortunate to have a visionary and practical leadership.
GDRFA News
133 video clips about Dubai uploaded on Instagram I n a unique initiative, the General Directorate of Residency and Foreigners Affairs in Dubai (GDRFA-Dubai) has uploaded 133 video clips on the Instagram highlighting the humanitarian side of the employees.
This initiative is first of kinds by a government body, according to Major General Mohammed Al Marri, Director General of GDRFA-Dubai. Good Morning My Homeland, he said, will help in promoting loyalty to the nation and develop positive energy among the employees. The initiative is in line with efforts of the directorate to launch innovative initiatives that infuse a culture of creativity and innovation among the staff members. The initiative has been launched by the Department of Media and Corporate Communications.
Health workshop for GDRFA women employees A s part of the Hawa’a Committee
activities, the General Directorate of Residency and Foreigners Affairs in Dubai (GDRFADubai) organized a health awareness workshop for the
women employees. Titled My Health and Life, the workshop was conducted in cooperation with Latifa Hospital affiliated to Dubai Health Authority (DHA). The workshop focused on raising
awareness about health issues related to women and promote a healthy lifestyle. Dr. Amal Al Mulla, Specialist in Obstetrics and Gynecology, conducted the workshop.
|Manafez Dubai |October ٢٠١٤ | 7
GDRFA News
Honouring ceremony for Hawa’a summer programme
M ajor
General Mohammed Al Marri, Director General of General Directorate of Residency and Foreigners Affairs in Dubai (GDRFA-Dubai) honoured the participants of the 2014 summer programme conducted by Hawa’a Committee. At a cer-
emony, he distributed certificates of appreciation and gifts to more than 20 students who participated in the programme taken up as part of the GDRFA-Dubai’s corporate social responsibility and community development efforts. The programme is designed to
provide the opportunity to spend their holiday break in developing their talents and skills in a positive manner. He thanked the organizations that extended support to the initiative and praised the efforts of the committee members in making it a huge success.
Dedicated chamber at GDRFA for ‘veiled’ customers T he General Director of Residency
and Foreigners Affairs in Dubai (GDRFA-Dubai) has plans to open a dedicated chamber for women customers wearing veils and it will have female staff members dealing with them. Major General Mohammed Al Marri, Director General of GDRFA-Dubai, said the privacy
8 |Manafez Dubai |October ٢٠١٤ |
of customers was foremost on the priorities of GDRFA-Dubai and all the employees also respect the Islamic and Arab traditions and culture. The idea for a dedicated chamber was developed following a suggestion that came up during his visit to
the GDRFA-Dubai office in Hatta. He was accompanied among others by Brigadier Salah Bin Salloum, Assistant Director General for Entry Permits and Residency, Mohammed Sultan Thani, Consultant for Organizational Excellence, and Captain Salem bin Ali, Director of Customer Care.
Our
Message
The challenges of growth H is Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, has recently approved the expansion plans for the Al Maktoum International Airport in Dubai World Central (DWC). The first stage will take between six to eight years and entails AED120 billion spending. This will raise the airport’s capacity to 200 million passengers. The move comes at a time when Dubai International Airport is about to grab the title of the biggest airport in the world for international passengers. The airport is expected to see the number of passengers touching the 70 million mark by the end of 2014 and 100 million passengers mark by the year 2017. Over the next few years, Dubai airports are projected to handle between 250 and 300 million passengers which is about 17 million passengers a month or 500000 passengers a day. This huge number of travelers will be, without any doubts, a difficult challenge to ensure completion of travel procedures in a matter of few seconds. This mammoth challenge requires us to move quickly in developing new techniques, electronic platforms, smart services, simplification of regulations and procedures and enhance the professional skills and productivity of our staff.
We are sparing no efforts to adopt the best practices recognized worldwide and the development of our relations with the industry stakeholders. We need to achieve a balance between the need to facilitate faster travel procedures along with meeting the escalating security challenges. Our government is sparing no efforts providing us all our needs in terms of human resources, finances and technical assistance that we needed to do business. Our experience in dealing with large numbers of passengers allowed us to develop the philosophy of flexible use of our resources to serve our requirements. This flexibility is the magic formula that allows major corporations and global institutions to achieve maximum utilization of available resources to achieve the best results.
Major General Obaid Moheir bin Suroor Deputy Director General GDRFA-Dubai
|Manafez Dubai |October ٢٠١٤ | 9
Cover Story
GDRFA-Dubai showcases technology leadership through Gitex-2014
10 |Manafez Dubai |October ٢٠١٤ |
Cover Story
M ajor General Mohammed Al Marri, Director General, GDRFA-Dubai, says an impressive lineup of new technology had been unveiled by GDRFA-Dubai at the 33rd edition of Gulf Information Technology Exhibition (GITEX) held in Dubai from October 12 to 16.
Participating in the world’s third biggest ICT show since 2009, GDRFA-Dubai spared no efforts in utilizing its biggest-ever participation in the show to highlight its technological edge for seamless travel facilitation. GDRFA-Dubai introduced the world’s first 3D robot dedicated to answering customers’ queries at Dubai International Airport and GDRFA-Dubai centers through live video streaming. Also unveiled was the first of its kind electricity-powered car dedicated to serve transit passengers’ needs at the world’s second busiest airport for international travelers. Captain Khalid bin Mediya, Assistant Director General of Smart Services Sector at GDRFA-Dubai, offered insights about Gitex-2014 participation. What goals GDRFA-Dubai is seeking to achieve from GITEX participation? Harnessing and expanding technical resources tops our priorities at GDRFA. Hence, the participation in the world’s third largest ICT
GITEX-2014 is the most important and biggest in the history of GDRFA-Dubai’s participation. This year, the world’s leading ICT show saw the launch of a unique 3D robot and AMR car by GDRFA-Dubai designed to serve the customers’ needs and transit passengers.
GDRFA- Dubai unveil the world’s first 3D robot to answer customers’ queries show was very crucial for us not only because it attracts world’s top-notch technology developers but also because the exhibition is accompanied by a series of conferences, seminars and workshops during which experts, thinkers and decision-makers sheds light on the challenges, opportunities and latest trends in our increasingly technology-driven world. In general, GDRFA-Dubai seeks to achieve a number of goals through GITEX, chief being the showcasing of our portfolio of smart services and electronic projects to the
public, raise their awareness about their importance and benefits, how to use them and at the same time measure customers’ satisfaction which rose to 98 per cent as per the GITEX-2013 survey We hope to reach the 100 per cent mark during this year’s participation. It goes without saying that GITEX is an ideal platform for forging strategic partnerships with government bodies which are connected one way or another to the GDRFADubai work. What are the major innovations revealed over the past editions of GITEX? Since the very first year of our participation in GITEX in 2009, our showcased services have been greeted with praise and admiration |Manafez Dubai |October ٢٠١٤ | 11
Cover Story
by the visitors and official delegations. Our technological lead started with the introduction of the first version of AMR car, which was at that time a qualitative leap in providing the services worldwide by all measures. The car, which is a complete administration on the go, is equipped with the latest technologies and equipments and is able to serve customers within Dubai with a wide range of services, including issuance and renewal of entry permits, rectifying and renewal of residency status, cancellation services, fees payment and issuance and renewal of Emirates electronic cards. I remember one Arabic newspaper commented at that time that ambulance cars come after hours in many countries, while Dubai’s AMR car arrives within minutes. Our technological innovations portfolio also includes GDRFA portal and website, which provides details about various procedures, GDRFA news and activities, information about smart services, residency laws and visa regulations, complaints and suggestions system.
It also includes AMR self-service kiosks which provide 24/7 services to customers in certain locations. It is equipped with a touch screen that enables customers to get instant answers to their queries and print original entry permits and mobile visa (M-Visa) The list also includes mobile services like renewal service and mobile visa dial 150#. Mobile services provide a wide range of facilities, including sending a reminder to customers about the due dates of their transactions and sending barcode visa through the SMS messages. Launching of smartphone services which include submission, cancel-
lation and renewal of entry permits, work permits fees payment, status modification and informative services, was another major hit at the iconic exhibition. ABER or crossing was another major hit. It is a unique combination between the e-gates project implemented at the UAE airports and the electronic linkage implemented at our land borders with Sultanate of Oman to facilitate passenger movements across the borders. Smart gates unveiled at GITEX were the proverbial jewel of the crown because of its advance technologies to register and issue cards which facilitates passengers’ arrival and departure and streamlining procedures through the electronic passport, identity cards, Emirates gate cards and smart phones applications. Virtual management was one of the superior services launched at GITEX to provide companies with an effective tool to obtain entry permits and residency electronically through internet without visiting GDRFA offices.
12 |Manafez Dubai |October ٢٠١٤ |
Cover Story
Captain Khalid bin Mediya
Last but not least, the smart TV application enabled customers to get instant answers to their queries and direct access to GDRFA services 24 hours a day. What new technology and innovations are going to be unveiled at GITEX 2014? Our participation in GITEX 2014 is the biggest in the history not only in terms of exhibition space which has grown annually by 15 per cent but also in terms of the uniqueness of the technologies and innovations unveiled. There is a qualitative leap in terms of the methods and approaches of introducing our services through the two outstanding projects that are to be applied for the first time worldwide. The first project is AMR smart device which is a moving robot that will be deployed at Dubai International Airport and GDRFADubai’s centers. The robot will answer customers’ queries about GDRFA-Dubai services. The multi-language robot is equipped with a live video streaming feature and can move to places where it is needed to help different segments of customers, especially
Innovative electricitypowered car to serve the needs of airport transit passengers people with special needs. The robot will enable customers to remotely communicate with GDRFA employees instantly through audio and video streaming. The robot, which is manufactured by a US specialized company, is different from the one currently in use as virtual digital assistant which is 2D only. The new robot is 3D and is able to move around. We have ambitious plans to deploy more devices in the future after receiving customers’ reactions and assessing the results. The second project, which is no less important, is an advanced new version of AMR car, which was launched in 2010 to serve the customers within the Emirate of Dubai. The new advanced, electricallypowered version will serve passengers at Dubai International Airport, especially the huge volume
of transit passengers, in line with the instructions of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, to offer transit passengers the option to enter Dubai and tour its major landmarks during short time available to them, before taking up their connecting flights to their final destinations. The new version of the car will be able to sneak around quickly through the different halls of the airport, from one gate to another, to provide airport’s passport control officers with the operational flexibility needed to absorb the spike in passengers’ numbers during the rush hours, during which several super-jumbo aircraft, designed to carry more than 500 passengers, arrive at the same time. We expect the new car will have a profound positive effect on a wide range of economic sectors such as tourism, hospitality, car rentals and retail. What is the mechanism used to turn innovative ideas into technical platforms? The smart services sector at GDRFA was one of the first sectors na|Manafez Dubai |October ٢٠١٤ | 13
Cover Story
UAE Vision 2020 to usher in revolutionary NextGen systems and applications
tionwide to change its name from electronic services sector to smart services sector five years ago, in line with His Highness Sheikh Mohammed bin Rashid Al Maktoum’s vision and Dubai government strategy plans. Our Director General Major General Mohammed Al Marri and Deputy Director General Major General Obeid bin Surour have been given the task of transforming that vision and strategy into a roadmap, which in turn is transformed by the smart services sector into technical platforms, thereby allowing GDRFA to introduce its services to customers according to world’s best standards and in line with our philosophy- pleasing customers is an achievable end. We have in place a very advanced mechanism to filter the suggestions and proposals through a system called, My Thoughts, which enables all GDRFA employees to participate. The filtered ideas are channeled to the different panels to study, asses and evaluate them in terms of overall technical and financial feasibility, practicality and value addition to our services. We also hold brain-storming sessions that brings all employees together. In fact, many of our innovations are the fruits of this mechanism. For example, AMR car and mobile visa were the successful outcomes 14 |Manafez Dubai |October ٢٠١٤ |
GDRFA-Dubai’s technological lead enables balance travel facilitation with security of the ideas put forward by our employees. Honestly speaking, these innovations would not have been possible without the complete and ceaseless support of GDRFA leadership and their keenness to honour and encourage those who participate in developing our technical innovations and contributing to our success. Why Dubai airport has the lion’s share in your technical innovations? Frequent visits by His Highness Sheikh Mohammed bin Rashid Al Maktoum to Dubai International Airport reflects the strategic importance of borders industry in his vision, not only because the airport is the first contact point with visitors but also due to the fact that its effective operations profoundly affects various economic sectors. No doubt the huge increase in passenger numbers at Dubai Interna-
tional Airport, expected to reach 100 million by the year 2020 compared with the anticipated 70 million by the end of this year, will be a tough challenge for us and that can only be dealt with smoothly through innovative and pioneering approaches to harness the prowess of technology to absorb the growth and improve performance levels. It goes without saying that the airport has the lion’s share of our technological innovations, including smart gates, AMR new car, the new 3D robot, self-service kiosks, smart traveler information system, Emirates’ card and mobile visa. Of course, this doesn’t mean in any way that we are not interested in developing new technologies to serve land and marine ports and fully integrate them with the airport. What is the strategic role played by smart services sector? The role played by smart services sector cannot be assessed solely by the technical innovations unveiled because these are just the tip of the iceberg. Behind the scenes, an army of experts, technicians and
Cover Story
programmers are working silently and sincerely to maintain, upgrade and expand servers, networks and platforms needed to carry out the exceptionally large volume of transactions that I doubt exists anywhere in the world. The massive technical infrastructure that is available to GDRFA is the solid rock upon which we build our digital transformation at not only the GDRFA headquarters but also at 21 different government bodies that benefits from GDRFA database available to them through the integrated services platform launched by His Highness Sheikh Hamdan bin Mohammed bin Rashid, Crown Prince of Dubai and Chairman of Dubai Executive Council. Is technology the way out to balance security with travel facilitation? The border industry worldwide is faced with a strategic challenge to balance the inevitable need to fa-
GDRFA-Dubai’s exhibition space in Gitex growing 15 per cent annually
GDRFA leadership encourages innovative ideas
GDRFA, which introduced the project to the UAE Ministry of Interior, will be the launching pad for the project in the first phase.
On the other hand, the scope and nature of security threats have immensely changed over the past decade while new threats are emerging and non-state actors are becoming technological wizards. It is clear that technological innovation is the only available option to make both the ends meet and to bridge the gap between the need to tighten security while facilitating seamless travel experience.
It will be applied nationwide at a later stage. Actually, we sometime find ourselves in a situation where the technological advancements are not able to cope up with our aspirations for excellence and many smart services that were ready for implementation had to be put on the hold until technology enters the perfection stage and becomes safe and secure to serve a huge and diverse customers with varied educational backgrounds, languages and nationalities.
This challenge is of a great importance in a multicultural city like Dubai, craving to be the world aviation capital and number one in all walks of life, including tourism, hospitality, exhibitions, finance, retail and real estate. In the next few months, GDRFA will go through a dramatic change in terms of all systems, applications and procedures, as a part of UAE Vision 2020, which will help in achieving a qualitative leap in the standards, speed and effectiveness of our services.
It is no secret that the huge database at GDRFA, which is by all measures a national treasure, was the true foundation upon which the smart transformation at different government bodies took place, including the ministries of Labour and Heath, Emirate ID, and airlines. The technological advancement also allowed us to use the available human resources in the best effective way to raise their productivity and free their time and energy to be used where it is needed.
cilitate travel with the indispensible need for tighter security at the border posts. According to International Air Transport Association (IATA), the number of air passengers exceeded three billion in 2013 and is expected to double during the next few decades. It is amply clear that passengers’ expectations have no end and the last thing they are willing to do is to stand for hours in queues, filling one form after another. |Manafez Dubai |October ٢٠١٤ | 15
If you are visiting or living in the UAE, you have experienced what emaratech does Millions of residents and travellers benefit from emaratech products and solutions “If you are visiting or living in the UAE, you have experienced what we do”. this statement summarizes what emaratech does and as seen at Gitex 2014 at Dubai World Trade Center. “This message es what we do”, Alzaffin, Director Board Member of
summarizsaid Thani General & emaratech.
emaratech’s e-Visa systems have processed more than 50 million applications and transactions for individuals, establishments and channel partners. Channel partners mean places where individuals have access to submit and complete their online applications and transactions. Building strong relationships between emaratech and its channel partners enabled emaratech’s systems successfully complete 30 million applications and transactions through their systems. With such a huge amount of daily applications and transactions, a first level call center support is required. emarat16 |Manafez Dubai |October ٢٠١٤ |
Thani Alzaffin, Director General & Board Member of emaratech
ech’s call centers have received and managed 1.13 million contacts.
management, settlement and reconciliation for all payment channels,” he said.
Payment gateway: noqodi
When applications are submitted online and to ensure convenience for everyone using the online systems and e-Commerce, emaratech has engineered a homegrown payment channel: noqodi.
noqodi’s resilient infrastructure and scalable technology is already live with a number of financial institutions offering its unique e-Wallet and instand online top-ups. noqodi is a PCi Data Security Standard certified payment gateway.
“noqodi is a pride icon for the UAE citizens and residents. It is a homegrown Emirati online and mobile payment gateway that offers complete financial
PCi certificate is the highest certificate for information security standards from the PCI Security Standards Council, which ensures card-
holder and payment information are transferred safely and securely. noqodi has processed over 3.8 million applications last year.
Success factors
While emaratech systems verifies, processes, quality checks and manages online system integrated services and payment transactions submissions, many operations cannot be completed without efficient, effective and express courier services. “Zajel, a subsidiary of emaratech receives and delivers all government agencies services contracted to ensure that we minimize the need for people to visit government agencies to complete their applications,”commented Thani. “Building this capacity enables us accomplish our vision. To become the regional leader in leader in the intellectual property creation and business process outsourcing in the knowledge economy by 2020,” Thani confirmed.
Border access & control solutions
Many are not aware that emaratech is behind the engineering of the UAE e-Gates since 2007 with over 150 e-Gates already operational in the UAE, Oman and Jordan airports. emaratech had also customized the eGate solution for entry/ exit and attendance that meet the needs for Emirates Air-
lines, flydubai and Etihad Airways’ cabin crew gates. 28 of the second generation of the e-Gates, best known as the smart gates, are already operational in Terminal 3 of Dubai Airport with 38 smart counters and growing with rollout plans for Terminals 1 & 2 and AlMaktoum International Airport. The smart gates are free to use by registered UAE citizens and residents, GCC nationals and 43 pre-approved countries to receive visa on arrival. There are 20 registration stations throughout Dubai for travelers to register their biometrics and use the smart gates when they arrive in Dubai at Terminal 3. Within emaratech’s ambition to become the regional leader in the automated boarder control, emaratech has finalized the proof of technology and concept for the “Intelligent Travel” by using Iris on the move technology. A reseller agreement was announced with SRI International to cater for border and access control needs to ensure better travelers’ flow and increase passengers’ positive experiences. “We believe that IRIS on the move is the future of intelligent traveling,” Thani said.
Smart City support
emaratech is also supporting Dubai Smart Government and TRA’s participation with a number of smart gates to complete the smart city models initiated at their respective stands.
Smart gate registration
Citizens, residences, GCC nationals and visitors (43 preapproved nationalities for visa on-arrival) can register for free at emaratech and GDRFAD stand to use the smart gates at Dubai Airports.
UAE Vision
UAEVision, a unified solution across the UAE re-engineering the current business processes for immigration services, civil affairs and border control systems have been launched at Gitex 2014.
Smart solutions
The GDRFAD mobile application, engineered and powered by emaratech, has many features for the individuals and establishments with noqodi payment gateway, user-friendly dashboards, extensions of on-arrival visas, renewing residencies and much more. The mobile application also offers the opportunity for registered users to generate a unique barcode enabling them access the smart gates at Dubai airports with their smart phones. The mobile application is available on all app stores (IOS, Android, Windows & Black Berry). Search for: GDRFA Dubai. |Manafez Dubai |October ٢٠١٤ | 17
Special Report
Our borders are open to the world
H is Highness Sheikh Mohammed says application of biometrics and other cutting-edge technologies will speed up the movement of visitors to Dubai through air, land and sea borders. The application of cutting-edge technologies like biometrics will speed up the increasing movement of visitors to Dubai through the air, land and sea borders while providing them a better travel experience. During a visit to the Dubai World Central (DWC) on September 6 to finalize the plans for the expansion of the Al Maktoum International Airport (AMIA), His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, asserted that the country’s borders are open to the world and that people are welcomed with open arms and mind. Dubai maintains an Open Skies policy since the late 1930s. The liberal visa policy facilitates visit of millions to the UAE from across the world for business and leisure. It is already bracketed in the Top 10 most-visited countries in the world. He endorsed the AED120 billion expansion of the AMIA in DWC to make it the world’s biggest airport with a capacity to handle 200 million passengers and 12 million tonnes of cargo per year on completion. 18 |Manafez Dubai |October ٢٠١٤ |
In remarks during his visit, he underscored the need and importance of open borders to facilitate the world gain insights into the rich Arab and Islamic culture, country’s breathtaking achievements in various domains and enjoy the hospitality of its people which has not faded over the years. AMIA started passenger operations in October 2013, three years after the launch of cargo operations. The first phase of expansion is expected to be completed within six to eight years. The entire development will cover 56 square kilometers in Jebel Ali with the Expo 2020 site in the vicinity. Sheikh Mohammed was accompanied by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, and His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority (DCAA), Chairman of Dubai Airports and Chairman and Chief Executive of Emirates Airline and Group.
Special Report
Sheikh Mohammed, who had a detailed look at the project’s “the light box-the jewel” design, said the giant project will be economically beneficial and will contribute significantly to the promotion of several industries like the air transport and shipping besides attracting investments. Sheikh Ahmed bin Saeed Al Maktoum said the latest technical innovations have been adopted in the airport designing with the possibility of future updates, with a focus on sustainability and a commitment to the application of environmental standards. Other areas of focus will be the adoption of modern technologies, biometrics and smart tracking system for travelers. The airport will have five parallel runways. Each runway will be 4.5 kilometres long and spaced apart to allow the use of four runways for landing and takeoff of aircraft at the same time.
AMIA started passenger operations in October 2013, three years after the launch of cargo operations
dating of these facilities in the city which has, after more than fifty years of development, modernization and construction, become one the top cities in the world. Eng. Khalifa Al Zafeen, Executive Chairman of Dubai Aviation City Corporation briefed the royal entourage about the key characteristics and advantages of each of the proposed designs prepared by Dubai Aviation Engineering Projects (DAEP). The two terminals will be served by three runways while the airport’s master plan has space to add two more.
The airport will have five parallel runways
There will be two main buildings, one for arrivals and the other for departures, in addition to the four Concourse buildings, each 2.8 kilometres long with three central points.
Dubai Airports, operator of both Dubai International and Al Maktoum International airports, welcomed the endorsement of the expansion plans by Sheikh Mohammed.
All stations will be seven times the size of a football field. Each station will have 100 parking spaces for wide-bodied airplanes and will hold 65 million passengers. Thus the total capacity of the airport will hold 220 million passengers with 400 aircraft parking spaces.
Dubai Airports says with passenger traffic expected to reach almost 100 million at Dubai International by the end of 2020, the further development of DWC will be a vital step towards providing the necessary facilities to accommodate passenger and cargo growth in the decades ahead. This will also pave the way for Emirates Airlines to relocate their intercontinental hub operations to DWC by the mid2020s.
Sheikh Mohammed was given a visual presentation about the development of air, land and maritime transport in Dubai and the up-
The aviation sector is projected to remain a cornerstone of Dubai’s economy. A 2011 study conducted by Oxford Economics revealed that aviation supports 250,000 jobs, 19 per cent of Dubai’s employment and 28 per cent of Dubai’s GDP. By 2020, that will increase to 32 per cent of Dubai’s GDP ($45.4 billion), 22 per cent of employment or 372,900 jobs. Officials say with limited options for further growth at Dubai International, it is logical next step to securing better future by building a brand new airport that will not only create the capacity needed in the coming decades but also provide state of the art facilities that revolutionize the airport experience on an unprecedented scale. Since the opening, passenger volumes at DWC continued to gain momentum, with 102,137 passengers passing through the airport in the first three months of the year. This was the first full quarter of operations since the new terminal was opened. Between April and June, it recorded 475,992 passengers, a sharp rise from 102,137 passengers in the first quarter this year. Last year, Dubai International handled over 66 million passengers, maintaining its position as the world’s second busiest airport for international passengers. This year, the traffic is expected to be around 70 million passengers. Experts forecasts that air traffic in Dubai could reach 190 million passengers a year by 2030, rising to 250 million by 2040 and 300 million by the middle of this century. |Manafez Dubai |October ٢٠١٤ | 19
UAE News
PCLA honour companies, labour camps and employees 20 |Manafez Dubai |October ٢٠١٤ |
UAE News
T he Permanent Committee for Labour
Affairs in Dubai (PCLA), chaired by Major General Obaid Muhair bin Suroor, Deputy Director General of GDRFA-Dubai, honoured five companies, seven labour accommodation sites and four committee employees for their distinguished services in the implementation of summer mid-day break rules for outdoor workers. Only 15 companies were found violating the government regulations during a drive during which 20000 inspections were conducted in Bur Dubai alone. Speaking at the honouring ceremony held at GDRFA-Dubai office in Al Awir, Major General Obaid thanked the companies for
their compliance with the mid-day break rule which is implemented every year from June 15 to September 15. He said the government has remained committed to ensuring compliance of regulations governing the workers’ rights and ensuring their health by following international best practices. He said as many as 20176 companies and establishments in Bur Dubai were covered during the inspections drive conducted in cooperation with the Ministry of Labour and Dubai Municipality. Only 15 companies were found violating the rules in 2014 campaign, compared with 51 recorded during the 2013 campaign.
Alongside the campaign, the PCLA conducted an awareness campaign and distributed posters highlight the mid-day break rules, workers’ rights and steps to be taken to implement the decision. The honouring ceremony, he said, will go a long way in strengthening the relationship between the companies and workers and further the spirit of cooperation and good work culture environment. He said that hosting of Expo 2020 in Dubai will bring in a big increase in the number of workers, thereby posing a big challenge for the authorities and companies in terms of implementing rules and regulations governing the workers’ rights.
|Manafez Dubai |October ٢٠١٤ | 21
UAE News
One million medical fitness tests in Dubai in H1 2014 T he Medical Fitness Department of the
Dubai Health Authority (DHA) has announced that about a million medical fitness tests were conducted during the first half of 2014. Maisa Al Bustani, Director of Medical Fitness at the DHA said: “ The medical fitness department at the DHA conducted a total of 992,322 medical fitness procedures of which 478,451 fitness tests were for issuance of new visas and the remaining were for renewal of visas.” Medical Fitness is a mandatory requirement for all expats in the UAE. It is required for a residency, employ-
ment or education visa. The DHA has 16 medical fitness centres for issuance and renewal of medical fitness tests. She said: “Mandatory screening for housemaids includes Hepatitis B, HIV, TB, Syphilis and pregnancy test. The housemaid also receives all three doses of the Hepatitis B vaccine, if she does not have it already.” She said two categories of employees undergo additional screening, these include, household workers such as drivers, cooks, gardeners, nannies
and housemaids. The second category includes people in the food industry, those working in beauty parlours and health clubs. By early 2015, DHA will establish two medical fitness centres in Mirdif and Karama for occupational screening. By the end of 2014, DHA will establish one new branch in new Dubai exclusively for VIP patients. The expansion plans are in line with the demand we witness. This area includes Dubai Marina and Discovery Gardens.
Males far outnumber females in Dubai J ust
like previous years, Dubai’s population has consistently grown by five per cent over the past year, reports Gulf News.A little over three-quarters of Dubai’s population are male. Statistics collected by the Dubai Statistic Centre show that 75.77 per cent of Dubai’s estimated population of 2.2 million are men, and 24.23 per cent are women. The DSC report attributed the unbalanced structure to the large proportion of foreign workers living in Dubai - most of whom are workingage males who are not accompanied by their family members.
22 |Manafez Dubai |October ٢٠١٤ |
While the ratio of men to women in Dubai is 313 males per 100 females, the rapid economic growth witnessed by the emirate is a result of the large number of expat workers. Statistics also show that two-thirds of the population is between the ages of 20-39. In 2013, the total number of men in that age group was almost 60 per cent more than that of females in the same age group.The report states that the number of workers residing outside Dubai as well as temporary residents adds an additional million to the overall population of Dubai. The total number of active
individuals during the day in Dubai is 3.2 million. The increasing movement of people during the day is mainly due to the availability of various investment opportunities in the emirate, which requires many people from other emirates to come to Dubai on a daily basis. The report showed that another main reason is the cheaper accommodation rates in neighbouring emirates, which leads many employees and families to live outside Dubai but continue to work in the emirate.
UAE News
Surge in FM services spending by 2020
A recent
report by the Middle East Facility Management Association (MEFMA) suggested that around AED80 billion was spent on Facilities Management (FM) services in 2012 while the growth by 2020 has been projected at AED 300 billion. Tariq Chauhan, Group CEO, EFS Facilities Service Group, commented: “We believe that the essential driver to more growth will be through further increasing awareness about the benefits and advantages of having a good FM services provider. The industry is now moving towards technologically advanced equipment and processes to ensure high quality services.”
He said: “Today, stakeholders and corporate players understands the importance of having efficient infrastructure, improved building management, as well as the importance of moving from an in-house fixed-cost model to a variable outsourced model. This realization will facilitate an increased demand for outsourced services in the region.” The UAE, Egypt and India continue to remain strong FM markets due to the increasing GDP contributions of its construction and real estate segments. The African and South Asian countries have been witnessing fastpaced growth.
EFS has announced impressive business growth with the value of the contracts its signed in the first six months of Fiscal Year (FY) 2014 exceeding AED400 million. EFS currently manage over 200 projects, valued in excess of USD 500 million and employs over 8,000 FM professionals in 18 countries across the MEASA region. According to WAM, Facilities Management (FM) services contracts in the UAE could be valued at approximately AED20 billion per annum by next year. An average of 60 per cent of most industries in the UAE may outsource its FM requirements, it said.
UAE on job radar again T he UAE’s Ministry of Labour has reported increase in workforce for second consecutive year. According to its report, after the global financial crisis, the number of employees in the country decreased from 4,079,453 in 2008 to 3,889,234 in 2010. The drop continued for another year. The UAE once again started attracting workers from around the world and registered a 4,022,815-strong workforce in 2012. The figure increased to 4,026,764 in 2013. According to the report, 297,461 private establishments were registered with the ministry last year. The building and construction sector accounted
for the largest number of employees at 34.3 per cent; followed by the trade and repair services (23.8 per cent); industries and manufacturing industries (10.9 per cent); real estate, leasing and business services (10.4 per cent); transport, storage and communications (7.6 per cent); hotels and restaurants (4.7 per cent); and others (8.3 per cent).The total number of work permits issued last year stood at 41,439, as compared to 31,919 in
2011, while part time work permits registered a significant increase at 6,785 as compared to 879 in 2011. The ministry also issued 600 work permits for juveniles, a service it provides to the private establishments to recruit an Emirati or an expatriate from inside the UAE, and whose ages are 15 and not more than 18. The permit is valid for one year, Khaleej Times reported. |Manafez Dubai |October ٢٠١٤ | 23
UAE News
First Emirati to head Toastmasters International A n Emirati has been named interna-
Dubai hotels enjoy busiest H1 in history
D ubai hotels welcomed more than 5.8 million tourists in the first half of 2014, the highest number of visitors ever achieved in the first six months of the year.
tional president of the Toastmasters International. “It is definitely an honour and a privilege to represent the UAE as international president,” said retired Dubai police officer Lt. Col.
The statistics, released by Dubai Department of Tourism and Commerce Marketing (DTCM), show increases across key indicators including hotel establishment guests, hotel and hotel apartment room revenues, F&B revenue and average length of stay.Helal Saeed Almarri, DTCM Director General, remarked: “Our strategy continues to be positioning Dubai as the mustexperience family destination and as such we are constantly diversifying our tourism offering and increasing our hotel portfolio to attract, and cater to, a broader market of visitors.
Mohammed Murad.Toastmasters International teaches public speaking and leadership skills through a network of meeting locations. Headquartered in Rancho Santa Margarita, California, the organisation’s membership exceeds 313,000 in more than 14,650 clubs in 126 countries. He joined the Dubai Toastmasters Club in 1996 when it had less than 35 members and just one club.
tunity to the private companies to show transparency by adopting the system.
Sharp fall in labour disputes due to WPS T he number of employees who had
refused to work over labour disputes in the country has fallen by more than 45 per cent over the last four years. The Wages Protection System (WPS) enforced in the country has been cited as the main reason for the decline. A report by the Ministry of Labour attributed the decrease to
24 |Manafez Dubai |October ٢٠١٤ |
the laws and initiatives launched by the government to protect the rights of the employees, notably the WPS. The number of people who refused to work was 104 in 2009, 81 in 2010 and 67 in 2011, the report said. The WPS which has been implemented in three phases since 2009 has provided an oppor-
The ministry and the UAE Central Bank enforce the system, by which the wages of the private sector employees are transferred directly to the employees’ bank accounts or accounts in money exchange companies. The ministry gets updated information, which helps it monitor whether the companies are paying the wages of their workers regularly. The report said 3.2 million private sector employees - 82 per cent of the total employees -received their salaries through the WPS last year, while 84 per cent of the companies are registered with the system.
UAE News
GCC nationals invests big in Dubai realty I nvestment
by Gulf Cooperation Council (GCC) nationals in Dubai’s real estate market exceeded AED19 billion during first half of 2014, the Dubai Land Department (DLD) said. UAE nationals accounted for transactions worth AED12.5 billion in the property sector from January 1 to July 1. The amount represents almost
double the AED6.5 billion figure invested by all other GCC nationals combined. Citizens of Saudi Arabia were ranked second on the list of GCC real estate investment with AED3.371 billion followed by Qataris came with transactions worth AED1.463 billion. Kuwaitis notched up fourth place with
AED839 million transactions and Omanis fifth with AED482 million transactions. Bahrain citizens occupied the sixth position. In 2013, the total value of real estate transactions in Dubai rose from AED154 billion in 2012 to AED236 billion in 2013. After Emiratis, the biggest investors in the Dubai realty sector include Indians, Britons and Pakistanis, according to the DLD. In the first quarter, Indians continued to be the top foreign investors with investments worth AED5.8 billion. Britons came next with a total of AED3 billion while Pakistani investors spent around AED2 billion. Indian investors spent AED8 billion in the first half of 2013 and AED9 billion in the whole of 2012.
64% of employers to hire in the UAE
T he latest Bayt.com Middle East and
North Africa Job Index Survey conducted by Bayt.com and YouGov reveals that 44 per cent of companies in the UAE are definitely hiring in the coming 3 months. 64 per cent of these will be looking to hire up to up to 10 people, mostly for junior executive positions.In addition to 44 percent of companies in the UAE definitely hiring in the next 3 months, 23 per cent claim they will probably be hiring within the same time period. More specifically, in the next three months UAE companies will seek sales managers (19 per cent), customer service representatives (15 per cent), human resources professionals (14 per cent), project managers (14 per cent), and executive assistants (14 per cent).
Dubai among world’s most influential cities D ubai has been ranked the seventh
most influential city in the world, above global cities such as Los Angeles, Beijing and Sydney, according to a new list published by Forbes magazine.
diversity. As a crossroads of humanity, Dubai is unparalleled among global cities for its diversity: 86 per cent of its residents are foreign born, it said.
The list ranks the cities based on eight factors including the amount of foreign direct investment, concentration of corporate headquarters, air connectivity, financial services, technology and media power and racial diversity.
Dubai was also the only city from the developing world to feature within the highest ranking cities. The top 10 included: London, New York, Paris, Singapore, Tokyo, Hong Kong, Dubai, Los Angeles, Beijing and Sydney.
Dubai, which also topped the global ranking for air connectivity, was acknowledged for its growing infrastructure and
The report also stated that UAE capital Abu Dhabi, which ranked joint 20th, could move up in the future. |Manafez Dubai |October ٢٠١٤ | 25
Middle East News
Surge in Ugandans working in Middle East A government report says the number
of Ugandans working in the Middle Eastern countries have reached 42,015 since 2006. The figure includes Ugandans who sought employment as guards in Iraq at the height of the insurgency five years ago, according to a report in New Vision. The year 2010 saw the highest number (8368) with 2006 – the year it became mandatory for labour exporting firms to be issued licenses– registering the smallest number (1685). Uganda is signing MoUs with Saudi Arabia, Qatar, Kuwait and the UAE as the government seeks to draw a line under harrowing incidents of abuse Ugandans seeking to escape the fangs of unemployment back
home get subjected to by their employers abroad. Under the new arrangement revealed, the welfare of Ugandans in the four countries will be the con-
GCC mulls expats free movement
T he labour ministers of six Ara-
bian Gulf Cooperation Council (AGCC) states are currently studying the possibility of issuing a joint decision to allow free movement and residence of GCC nationals and expatriates within the member states in November amidst the reservations Kuwait and other countries, reports AlSeyassah daily. More than 20 million expatriates, mostly Asians, live in the GCC states and account for over 40 per
26 |Manafez Dubai |October ٢٠١٤ |
cent of the group’s total population of about 48 million. Quoting Minister of Social Affairs and Labor Hind Al-Sabeh, the report said the GCC labor ministers have looked into the proposals and decisions of member states. She reiterated that the recommendation concerning residence and movement of GCC nationals and expatriates is being reviewed, but she refused to give more details until the study is completed.
cern of the respective governments, instead of the shadowy labor firms that tend to abandon recruits the moment they board planes to distant shores. Uganda has issued licenses to 29 labor exporting firms.
Kuwait deports 1,474 expats
S tatistics issued by the Research and Studies Center at the Ministry of Interior shows 1,474 expatriates — 1,293 men and 181 women — have been deported from the country over the past two years, reports Al-Qabas daily. The statistics also show 761 other people were deported in 2012 and 713 in 2013. According to statistics, 390 were deported for drugs-related crimes, 326 for committing thefts, 230 bootleggers, 182 for committing fraud, 147 people for rapes and 99 caught committing adultery.
Middle East News
Saudi Arabia detains 22,000 infiltrators each month S audi Arabia’s Ministry of Interior has
issued a report revealing that an average of 22,000 illegal migrants was detained every month for the past six months, Al-Madinah daily reported. The report also shows 252,544 people were prevented from crossing into the country illegally since the beginning of a security campaign to flush out illegal foreigners living in the country legally. The ministry has also enacted penalties for migrants who violate residency requirements, including a SR15, 000 fine, one month in prison and deportation for the first offense. Those who transport, employ, harbor or provide any type of assistance to
Rising demand for IT professionals in ME
A rising need for IT professionals cou-
pled with a short supply in local talent is impeding organizations’ migration efforts towards emerging technologies. A report by the International Data Corporation (IDC) shed some light on the looming skills gap in the region. The study showed that emerging networking technology skills, such as those required for cloud computing, mobility, and virtualization, represented 38.4 per cent of the total networking skills gap in 2012, growing to 46.3 per cent in 2016.Within this group of skills, the IDC estimated in 2012 a shortage of around 18,421 full time equivalents (FTEs), IT professionals spending all of their work time working with networking technologies, with the gap increasing to 60,144 in 2016.
infiltrators will, for a first offense, be fined SR25, 000 and sentenced to six months in prison. The authorities have been cracking down on illegal migrants since the expiration in November 2013 of a sevenmonth amnesty during which they had
to regularize their status or leave the Kingdom. Nearly one million foreign migrants took advantage of last year’s amnesty to leave voluntarily, while another four million were able to find employers to sponsor them. The authorities have deported 614,262 illegals this year, official figures show.
220,000 Indians granted Saudi visas in one month S audi
authorities have granted more than 200,000 visas to Indian domestic helpers and labourers in one month.“Since we resumed bringing in Indian workers at the end of Ramadan, the number of visas has reached 220, 000,” Ahmad Al Fuhaid, undersecretary for international affairs at the Ministry of Labour, said.
contractual relations between Indian domestic workers and their Saudi employers. The agreement covered 12 categories of workers including drivers, janitors, cleaners, waiters, gardeners and household managers working for individuals.
“Around 44,000 visas were for domestic helpers while the others were for workers in the public and private sectors,” he said in remarks published by local daily Al Eqtisadiya. India and Saudi Arabia had signed an agreement in January, regulating |Manafez Dubai |October ٢٠١٤ | 27
International News
UK is selfemployment capital of Western Europe U K’s self-employment rate grew at the fastest pace in Western Europe between the first quarters of 2013 and 2014.
ployed has grown by more than 1.5 million in the past 13 years to 4.5 million and now accounts for more than 15 per cent of the labour force.
Figures from the IPPR think tank show that the growth in self-employment in the UK is expected to continue. The number of self-em-
The report said: “The UK had internationally low levels of self-employment for many years but has caught up with the EU average and,
Thailand to extend tourist visafee waiver
28 |Manafez Dubai |October ٢٠١٤ |
Around two-fifths of all new jobs since 2010 have been among the self-employed.
Turkey plans easier work permit application
T urkey is considering easing work permit re-
quirements for foreigners with a new programme to draw more foreign investors and qualified workers.
E uropeans
are next in line for a visa fee waiver by the Thailand government, according to the Ministry of Tourism and Sports officials.The tourist-visa fee waiver would be temporary to boost travel and encourage Europeans to apply for a tourist visa if they wish to stay longer in the country than allowed on a visa-free entry. It argues that the visafree service was never intended to facilitate long stay or allow visitors to seek employment and take up unofficial residence in the country. Thailand approved earlier a
if current growth continues, the UK will look more like southern and eastern European countries, which tend to have much larger shares of self-employed workers.”
visa-fee waiver for visitors from mainland China and Taiwan. Thailand welcomed 26.7 million visitor arrivals in 2013, representing a 19.6 per cent increase over international tourists in 2012. Six Asia-Pacific and one European countries contributed more than one million visitor arrivals each. Europe is the second largest market by region at 6.3 million visitors, an 11.62 per cent increase.
The government has put revising work permit and visa requirements onto its agenda as part of its plans to restructure employment incentive schemes to make it more responsive to instant needs. Foreigners will be subject to a new and “easier” application process that is more sensitive to the education level and the investment amount of the foreigner seeking the working permit, according to the plan. The new procedures are planned to be designed in a way to allow more space for more individualized application processes and granting permits in different validity durations.
|Manafez Dubai |October ٢٠١٤ | 29
International News
EU illegal border crossings surge T he European Union’s border agency
has reported that detections of illegal border crossing at the EU external borders increased sharply in 2013, rising to over 107,000 from 75,000 in 2012. According to BBC News, the total for 2014 so far is higher than the equivalent period in 2011, the year which saw the ‘Arab Spring’ and a reported total of 140,000 migrants entering Europe illegally. The Daily Telegraph reports that from January to April this year, 42,000 migrants were detected by Frontex. In its Annual Risk Analysis 2014 report, Frontex says migration towards the EU in 2013 was characterized by three main phenomena: a significant increase in the number of Syrians ar-
riving, a steady flow of migrants departing from North Africa and heading across the Mediterranean to Italy, and a sharp increase in detections of irregular migrants on the Western Balkan route.
All-time high renouncing of US citizenship
T he number of Americans renounc-
ing US citizenship stayed near an all-time high in the first half of 2014 before rules that make it harder to hide assets from tax authorities came into force. About 1,577 people gave up their nationality at US embassies in the six months through June – the second time in history that has been a reading of more than 1,500, according to Bloomberg calculations based on records starting in 1998. This rise is attributed to tougher asset-disclosure rules effective as of July 1 under the Foreign Account Tax Compliance Act (FATCA). Swiss banks are trawling through records going back to the 1990s to find clients with US addresses and telephone numbers.
30 |Manafez Dubai |October ٢٠١٤ |
US is the only OECD membernation that taxes citizens wherever they reside. Shunned by Swiss and German banks and with FATCA looming, almost 9,000 Americans living overseas gave up their passports over the past five years. FATCA is projected to generate $8.7 billion over 10 years, according to the congressional Joint Committee on Taxation. Switzerland is the largest cross-border financial center with $2.3 trillion of assets. Americans with a net worth exceeding $2 million and an average income tax of at least $157,000 over the previous five years must pay an exit tax on unrealized capital gains when they renounce US citizenship.
Most detections of illegal bordercrossing were of Syrians, Eritreans, Afghans and Albanians, who together accounted for 52 per cent of total detections.
New Zealand employment warms up
D ata
from New Zealand’s leading online employment marketplace, SEEK, has shown for those seeking new employment opportunities the regional areas are warming up, while four interest rate rises in the last five months have tempered the rapid job growth seen earlier in the year across major cities.“Strong employment growth potential exists across the country’s regional food growing and processing areas. Regions that support the production and processing of exports for infant formula, dairy nutritionals, meat and seafood, are in need of a range of skills from labourers to science and technology specialists,” says SEEK New Zealand’s General Manager, Janet Faulding.
International News
Malta halves EU property residency rules
M alta has announced a new residency
programme for EU nationals – and has halved the minimum property purchase requirement. The High Net Worth Individual Rules for EU nationals, which required property investment of at least €400,000 has been replaced by the Global Residence Programme (GRP), which requires a minimum spend of €275,000 on a property in
Malta and €220,000 for one in Gozo or the south of Malta. The limits are the same as the Global Residence Programme for non-EU nationals, and both include the option of €9,600 annual rental for Malta and €8,750 for Gozo and the south. The Malta scheme has one of the lowest entry points in the EU and is
Major shift in Australian migration policy in 20 years
A ustralia’s
migration policy has shifted significantly in the past 20 years, leaving a system subject to widespread rotting and controversy. The first shift has seen the permanent migration programme evolve from one with a focus on family and humanitarian migration to economic migration. A second big shift has been the introduction of temporary pathways for migrants to work in Australia. In recent years, 100,000 – 135,000 temporary migrants have been admitted annually, mainly through the subclass 457 temporary visa scheme. These migrants are employer spon-
sored, and are entitled to work for four years.Although the government determines a list of skilled occupations temporary migrants must possess to be sponsored, it is employers who determine how many migrants within any particular occupation actually enter Australia. This has led to an over-supply of some skilled occupations in the Australian labour market. In the last 10 years there has been a dramatic increase in unskilled work being done by migrants on visas dedicated to purposes other than work, namely, international students and working holiday visa holders.
less than half of the €500,000 property investment needed to qualify for the ‘Golden Visa’ property-forresidency scheme in Spain and Portugal, which is open to residents of non-European Union countries and is dominated by the Chinese. The High Net Worth Individual Rules for non-EU nationals only attracted two applications in its twoyear existence.
1 in 3 Mexicans would migrate to US
A new survey about preferences and
trends in Mexico concludes that one out of every three Mexicans would migrate to the US if given the opportunity. The survey published by the Washington-based Pew Research Center also says that of the 34 per cent of Mexicans who indicated they would like to move to the US, 17 per cent “would do so without authorization,” meaning without legal documents. Katie Simmons, senior researcher at the Pew Research Center, says that attitude has changed little in the past five years. On the other hand, the survey found that fewer Mexicans have friends or family in the US. |Manafez Dubai |October ٢٠١٤ | 31
International News
EU to relax visa rules T he European Union (EU) has simpli-
fying the rules to obtain a Schengenarea visa in the hope of encouraging more travel to the bloc and boosting tourism income. The changes could help with economic recovery in the crisis-battered EU, by bringing in an estimated 130-billion euros over five years and helping to create 1.3 million jobs, according to the European Commission.The Schengen area comprises 22 of the EU’s 28 member states - Bulgaria, Croatia, Ireland, Cyprus, Romania and Britain are not included - as well as nonEU members Iceland, Liechtenstein, Norway and Switzerland. EU Home Affairs Commissioner Cecilia Malmstrom, said: “Europe needs a smarter visa policy. We need to attract more tourists, business
cumbersome visa rules. The measures include reducing visa processing times; simplifying application forms, including online procedures; removing the need to buy travel insurance; offering one-year visas to tour the bloc; and allowing EU embassies to handle requests on behalf of other member states. people, researchers, students, artists and culture professionals to our shores while preserving a high level of security at our borders.” The changes could lead to a 60 percent increase in visitors from six key countries - China, India, Russia, Saudi Arabia, South Africa and Ukraine, the commission said. About 6.6 million potential travellers from these markets had been put off in 2012 by
The measures require the approval of EU member states and the European Parliament, which is not expected before 2015, the commission said. A total of 17.2 million people applied for Schengen visas in 2013, according to the commission, with the bulk coming from Russia. That country alone accounted for more than 6 million visa applications in 2012, according to a SAPA-DPA report.
Foreign students are not ‘immigrants’ R esearch by Universities UK and the think-tank British Future suggests the public wants foreign students to be removed from immigration control targets.
The study called for an easing of restrictions on graduates working in the UK after finishing their course and the introduction of an overarching “international student growth strategy” to boost numbers beyond the 300,000 currently studying in the country each year. A poll commissioned as part of the study found that almost six-in-10 people – 59 per cent – opposed any reduction in foreign students. Less than a quarter – 22 per cent – wanted a reduction in numbers. Three-quarters of people are in favour of allowing international students to stay on and work after they finish their degree.Just over four-in-10 adults believe foreign gradu32 |Manafez Dubai |October ٢٠١٤ |
ates should be allowed to stay in the UK as long as they have work, while 16 per cent support a two-year maximum and 12 per cent called for a cap of up to five years. Sixty per cent of the population believes international students bring money into the local economy. The government has introduced a more stringent process for vetting applicants, new credibility interviews, increases in visa application charges and restrictions on working in the UK after graduation. This includes giving them just four months to find employment and requiring them to find a job paying at least £20,500.
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New Technology
Smell of money could pinch smugglers
R esearchers have developed a portable device that identifies specific vapors given off by US paper money
Gold-plated handguns. Million dollar pieces of art. Exotic wildlife. These and other ostentatious symbols of wealth were reportedly found at some of the properties formerly owned by Joaquin ‘El Chapo’ Guzman – Mexico’s top drug kingpin. But it was the bulk cash, mostly in carefully stacked $100 notes, that caught the authorities’ attention when they arrested the most-wanted public enemy in February 2014. Reports from Mexico speculate the money recovered could eventually exceed one billion dollars. This, officials say, is the proverbial tip of the iceberg. Criminals are smuggling an estimated $30 billion in US currency into Mexico each year from the United States. In the past fiscal year, law enforcement officials uncovered more than $106 million in smuggled cash headed from the US to Mexico. But this was only a small portion of the billions that made it across the border undetected - hidden among belongings, in clothing or else3434|Manafez |Manafez Dubai Dubai |October |October ٢٠١٤ ٢٠١٤ | |
where. It is illegal to bring more than $10,000 in currency out of the US without declaring it.
growing problem of ‘dirty money’ and the efforts to develop a detector for tracing bulk currency smuggling.
The 2007 National Money Laundering Strategy, produced by the Departments of Treasury, Justice, and Homeland Security, stated that the smuggling of bulk currency out of the US is “the largest and most significant drug money laundering threat facing law enforcement.”
It said: “As US financial institutions continue to improve legislation that reduces money laundering, criminals with large quantities of cash have shifted their focus to bulk currency smuggling, making deposits in foreign banks. Current DHS and law enforcement technologies catch only a fraction of the currency passing through the ports and borders.”
US Immigration and Customs Enforcement officials says bulk smuggling of US currency is the preferred method used by foreign drug traffickers and other criminal enterprises to receive the proceeds of their activities. A Fiscal Year 2010 report by US Department of Homeland Security (DHS) offered insights into the
According to experts at the Financial Action Task Force (FATF), bulk cash smuggling is one of the three principal international money laundering methodologies. Bulk cash refers to the large amounts of currency notes that criminals can accumulate
New
through illicit activity, particularly narcotics trafficking. Smuggling, in the context of bulk cash, refers to money launderers’ subsequent attempts to physically transport the cash from one country to another – for example from the US to Mexico -where it is easier to launder. While estimates of US narcotics sales vary widely from $50 billion to $100 billion annually, $100 billion in drug sales may generate as much as 20 million pounds of currency. As a result, those who launder narcotics proceeds have a logistics problem. A money launderer attempting to make a bank deposit of $1 million in $100 bills would have a stack of cash standing five feet high and weighing more than 20 pounds. Smaller denominations would make the transaction even more absurd. It takes fifty thousand $20 bills, weighing more than 100 pounds, to make $1 million. The logistics, coupled with mandated financial transparency reporting requirements, have increasingly driven narcotics trafficking organizations to try to smuggle bulk cash into jurisdictions such as Mexico, where placing their ill-gotten gains into financial networks is much easier.
Those who launder narcotics proceeds have a logistics problem The PATRIOT Act, enacted in 2001, criminalized the international smuggling of bulk cash. Between fiscal years 2003 and 2013, bulk cash smuggling investigations led to the arrest of more than 2,300 individuals and seizures of more than $543 million. In fiscal year 2013 alone, special agents arrested 521 individuals and seized more than $59 million. According to the American Chemical Society, tracking down this activity is harder to detect than drug smuggling.
Technology
KWJ Engineering President, Dr. Joseph Stetter, told KPIX-TV: “The system would extract gas samples from the traveler or from bags, vehicles and shipping containers. It would detect the trace currency emission signature even in the presence of car exhaust, perfumes, food and a range of temperatures, atmospheric pressures and relative humidity.” He added: “It’s kind of like a doctor when they detect an infection. We have lots of bacteria on us, but when it becomes overwhelming, and then of course it becomes an infection. It’s the same thing with chemicals, vapors and odors.”
To date, a dedicated currency detector has never been developed. Now, there are exciting developments in an emerging breed of software that can help in identifying, intercepting, and seizing bulk cash.
Suiqiong Li, a KWJE researcher, said: “We’re developing a device that mimics the function of trained dogs sniffing out concealed money, but without the drawbacks, such as expensive training, sophisticated operators, down time and communication limitations.”
Researchers at a California-based company, KWJ Engineering, say they are building a machine that detects the vapors given off by US currency.
Their method uses gas chromatography-mass spectrometry to detect the specific chemical fingerprint of money within a few minutes.
Although a variety of law enforcement agencies play a role in detecting and intercepting bulk cash smuggling, the Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP) are most active. ICE has partnered with other countries including Curacao, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Philippines, Spain, Taiwan and Thailand, among others to in the detection and seizure of millions of dollars in bulk currency. |Manafez Dubai |October ٢٠١٤ | 35
Special Study
The Relocation Triad
A study finds major companies moving to Malaysia,
Indonesia and the Philippines (MIP) the way they once flocked to China Malaysia, Indonesia and the Philippines have relatively large economies, ranked globally 16, 34 and 38, respectively out of 213 countries and territories. They have large populations, high productivity and significantly growing market. At the same time, wages are relatively low and education rates are high in relation to wages, especially in the Philippines and Malaysia. Combine these indicators with a projected influx of a large number of new workforce entrants and an emerging middle class, and it
becomes apparent why forwardthinking companies are considering investments in the South East Asian region. Major companies, including Fortune Global 500s, are starting to locate their operations in Malaysia, Indonesia and the Philippines, the way they once flocked to China. A steady supply of younger workers, cost of labor, high productivity and growing consumer markets are among the great influencers behind the unprecedented relocation decision, argued the study
Danny Yuan, COO, ManpowerGroup
titled, The Next Big Thing in Southeast Asia, released by ManpowerGroup. Danny Yuan, Chief Operating Officer for Asia Pacific & Middle East at ManpowerGroup and author of the study, said: “In 2014, we are seeing a relatively new trend take hold in the Asia-Pacific region. Offshoring to China was largely driven by the availability of cheaper labor.” “While the cost of labor is one factor influencing why companies relocate to Southeast Asia, there are other considerations. Among them are demographic trends-mainly a steady supply of younger workers and the prospect of making in-roads into the region’s growing consumer markets,” he opined.
Wages
Average wages in the MIP countries, are relatively low. In contrast, wages in other Asian countries have been rising to the point 36 |Manafez Dubai |October ٢٠١٤ |
Special
The share of China’s population of young people, ages 0-14, is only 19.5 percent that relocating to, or remaining in these markets may no longer be as financially appealing. Given that companies are already relocating major operations to the MIP countries, it is reasonable to expect efficiencies will follow shortly.
Demographics
The percentage of the population that is working-age in the “relocation triad” is comparable to the rest of the world, ranging from 61 percent to 66 percent of the population. The share of China’s population of young people, ages 0-14, is only 19.5 percent. Meanwhile, Malaysia, Indonesia and the Philippines enjoy much higher ratios of
29.1, 26.6 and 34.3 percent respectively. The impact is clear: incoming talent will be far more available in the MIP countries than in China, which was the center of attention in years past.
Market Presence
The reasons companies and industries enter a market may differ. In some cases, an industry may choose to enter a market solely for the sake of establishing its presence there. This is especially true in markets with a rising middle class, such as Southeast Asia. Since the country has one of the fastest growth rates of car ownership per capita in the world, manufacturers have a lot to gain. In some Southeast Asian countries, there is limited tax on the import of automotive parts as compared to the import of fully
Study
manufactured cars. That is to say, importing parts and assembling vehicles in country is far less expensive than importing fully assembled motor vehicles. Add to this rapid growth in vehicle ownership in a particular country, and it is easy to see why manufacturers might consider locating their assembly plants there. In fact, a recent Boston Consulting Group report argues that the MIP countries are among the most promising for this type of investment. White goods like appliances and linens, air conditioning, luxury goods and brand-name products will likely see rapid uptake in MIP countries and throughout Southeast Asia as the region’s middle class continues to expand. These |Manafez Dubai |October ٢٠١٤ | 37
Special Study
items typically come with high import taxes, so the confluence of a growing middle class and relatively low wages makes the MIP market appealing for manufacturers. Non-durable goods like pre-packaged food, toiletries, consumables and household products are also likely to see increased production and consumption in MIP countries as the middle class continues to expand.
No single industry focus
With the exception of outsourced call centers in the Philippines, which are credited with contributing to the country’s economic growth, there is no single industry driving investment in the MIP countries. 38 |Manafez Dubai |October ٢٠١٤ |
Malaysia, Indonesia and the Philippines enjoy much higher ratios of younger population
Unique local economic factors and the availability of natural and human resources likely contribute to the presence of manufacturing in these countries. At the same time, global companies from technology to health care, retail and pharmaceuticals and many others are seeing opportunities in the triad. It is no longer about moving somewhere just for cost savings, but about the total opportunity. Investment in MIP countries is
also being stimulated by favorable regulatory, political and practical considerations. Malaysia is politically stable and considered geographically appealing with public policy is favorable to foreign investors with no limitations on where investments originate. Indonesia’s economy, the largest in Southeast Asia, offers political stability. Recent reforms, including favorable tax and customs reforms, have contributed to the country’s economic surge and stimulated significant amounts of investment. The Philippines offers significant tax incentives and simplified import/export procedures. Its portbased economic zones provide
Special
The Philippines offers significant tax incentives and simplified import/export procedures advantages in shipping across the Pacific. The country has one of the largest English-speaking populations in the world. Companies entering these markets do face numerous risks and challenges that must be considered and, to the extent possible, mitigated. In Malaysia, only 52.8 percent of the local graduates are employed 6 months after finishing their studies. Not unlike many countries in the world, this is due to the mismatch in the skills university graduates have versus what employers need. The skilled talent pool in Malaysia is low at 27 percent compared to regional peers like Singapore, Taiwan and Korea.
Bribery and corruption have also presented problems. This poses a unique problem for multinational companies that seek assurance from global suppliers regarding their ethical business practices. Finally, natural disasters, including earthquakes and the 2004 tsunami, are present in the minds of companies looking to locate in the country. Businesses in the Philippines are limited by nationality requirements. For example, procurement requirements for the public sector mandate that providers of goods and services must be 60 percent Filipino-owned, while infrastructure services must be 75 percent Filipino-owned. Infrastructure can be particularly costly in the Philippines, largely because of the price of electricity, the highest in all of Asia.
New opportunities
Moving operations into a new market is hardly a turnkey op-
Study
Malaysia has set forth a national agenda to make the country a high-income nation by 2020 eration. It is essential to have the right people in place, on the ground, including experts who can navigate local markets, regulatory environments and cultural nuances. If the metrics are any indication, opportunities abound in Southeast Asia. The vast majority of companies moving into the region are well aware of the regulatory and environmental challenges as well as of the opportunities. In times of compressed margins, faster time-to-value and pervasive economic uncertainty, the worst business decision that an organization can make is to continue business as usual.
Malaysia has set forth a national agenda to make the country a high-income nation by 2020, but according to estimates, it will require at least 45 percent of the workforce to be highly skilled. To compound matters, the country has faced problems with low levels of students passing English exams-only 16 percent scored highly in 2012. This may become a challenge as multinationals consider relocating their operations to the country. While labor arbitrage is available in Indonesia, there is high workforce mobility and turnover due to the lack of the right talent available at the right time. |Manafez Dubai |October ٢٠١٤ | 39
Special Study
Impact of visa abolition
EU and V4 to see 'moderate' surge in East European migrants
A seven-nation study has examined migration patterns in Eastern
European states bordering the EU (Ukraine, Moldova and Belarus) in the perspective of expected emigration to the EU (with particular emphasis on emigration to V4 states (Czech Republic, Hungary, Poland and Slovakia) after possible visa abolition.
40 |Manafez Dubai |October ٢٠١٤ |
Special
Poland appears to be the most important destination for migrants It focuses on qualitative and quantitative estimation of migration stocks of Eastern European states to the EU and V4 in the forthcoming 10 years. The year-long study by a multinational research team from Poland, Czech Republic, Hungary, Slovakia, Ukraine, Belarus and Moldova has revealed the nexus between EU visa policy and migration dynamics as well as the impact of economic, political and institutional factors on migration from Eastern Europe. The research has been led and cofunded by Centre for Eastern Studies (OSW), Poland. The 230-page report concluded that visa liberalization would merely be a contributing factor, reinforcing certain existing migratory patterns. The study results showed that in the medium-term perspective, even if EU member-states decide to lift the restrictions on access to their labour market, a rather moderate rise in the number of Eastern European migrants in the V4 (Czech Republic, Hungary, Poland and Slovakia) and EU may occur. No massive inflow of labour migrants from Ukraine, Belarus and Moldova to the EU should be expected after the visa regime for short-term travel for up to 90 days is abolished. The survey results indicate moderate growth in inflow of labour migrants
to V4 (Czech Republic, Hungary, Poland and Slovakia) and the EU, more long-term settlement migration, regularization of already present migrants, family reunification, and possible growth in undeclared employment. Secondly, projections based on the econometric model point to a circa 50,000 increase each in the number of Belarusians and Moldovans and around a 200,000-300,000 increase in the number of Ukrainian residents in the EU in a year perspective following the introduction of free movement of people. Thirdly, a conclusion from the analysis of the Western Balkan countries is
The obvious advantages of V4 countries for Eastern European migrants are their geographical and cultural proximity that visa liberalization has had little or no effect on the number of firsttime residence permits, or on immigration flows to EU MS. As visa liberalization did not have any measurable effect on longerterm migration trends regarding such diverse examples as Poland, the Baltic countries, Romania and Bulgaria, and later Serbia, Montenegro, Albania and Bosnia-Herzegovina, it would be extremely surprising if a completely different pattern emerged in the cases of Moldova, Ukraine and Belarus. It appears that the expected higher wages and general economic performance in destination countries are the strongest incentives for Eastern European nationals to migrate.
Study
These rather moderate anticipated increases may be explained by: the already significant number of Eastern European migrants at the EU labour markets, growing numbers of Eastern European migrants who obtain EU citizenship, depletion of demographic potential and increasing interdependence with Russia in the case of Belarus. Push factors, such as low wages, poverty, and political unrest in the countries of origin, appear to have lesser significance in the case of Eastern European migration. Certain reorientation from Russia towards the EU has been clearly observed in the migration flows from Ukraine and Moldova. It must be noted that unlike the Western Balkans, the three Eastern European neighbours of the EU lack the anchor of Euro-Atlantic integration and continue to be vulnerable to regional security developments. The highly unstable security and political environment, coupled with the precarious economic situation, does not preclude a rapid shift in migratory patterns, and as such must be taken into account by EU policymakers. Paradoxically, visa-free movement for countries located between the EU and Russia could help stabilize the situation by providing a muchneeded safety guarantee to the populations of these countries. The nexus between visa liberalization and management of migratory flows is beginning to be acknowledged by Brussels and those Member States that so far had been skeptical about the virtue of speedy abolition of short-term visas. |Manafez Dubai |October ٢٠١٤ | 41
Special Study
The attractiveness of V4 (Czech Republic, Hungary, Poland and Slovakia) as a destination location is slowly but steadily increasing, which is reflected in the growing stock of foreigners pursuing employment in V4 countries. On the other, despite dynamic modernization, the V4 countries are still defeated by the ‘old’ EU countries in the competition for attracting labour from third countries, offering better wages, social benefits, and working and living conditions. The obvious advantages of V4 countries for Eastern European migrants are their geographical and cultural proximity, as well as the migration networks developed over recent decades. In addition, the intra-state political, social and cultural relations between V4 coun42 |Manafez Dubai |October ٢٠١٤ |
Hungary attracts only Ukrainian nationals of Hungarian origin, while Slovakia receives insignificant numbers of Eastern European migrants tries and their Eastern neighbours remain strong. In all V4 countries, nationals from Eastern Europe (Ukrainians in particular) constitute a major migrant group; most of the EU visas in Ukraine and Belarus are issued by Polish and Czech consulates. It is a different situation in Moldova, where the main destination remains the countries of Southern Europe. The ethnic component cannot be omitted neither. Its importance is especially noticeable in the case of
Poland (in relation to compatriots settled in Belarus and Ukraine), and Hungary (in regard to compatriots staying in Ukraine). Current Eastern European migrant stock in the EU may be assessed at around 1 million individuals in the case of Ukrainian nationals, 100,000-150,000 individuals in the case of Belarusian nationals and around 200,000-300,000 in the case of Moldovan nationals. The estimated numbers in V4 states are smaller: around 250,000-300,000 individuals in total including Ukrainian, Belarusian and Moldovan nationals. It can be concluded that Russia still remains the primary destination for Ukrainian, Belarusian (over 90 per cent) and Moldovan migrants.
Special
The total number of migrants from those three states in Russia (around 2.0-2.5 million individuals) is higher than in the EU as a whole. What is surprising, however, is the fact that Russia probably has higher proportion of irregular migrants from Ukraine, Belarus and Moldova in the overall stock of migrants from those states than does the EU. In the case of Ukrainian, Belarusian and Moldovan nationals in the V4 states, it can be estimated, however very roughly, that irregular migrants account for between 20 per cent and 40 per cent of the overall number of migrants from those states. Two out of four V4 states are key destination countries for Eastern European migrants, namely Poland and Czech Republic. Poland appears to be the most important destination state in the EU for both Ukrainian and Belarusian migrants. The role of Czech Republic in the case of Ukrainian nationals is also of the highest significance, though it has lost its previous major position due to the global economic crisis. Hungary attracts only Ukrainian nationals of Hungarian origin, while Slovakia receives insignificant numbers of Eastern European migrants. Although the size of the EaP (Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine) population varied significantly among V4 countries, its features are similar in all cases.
Study
Visa-free regime The EU has promised a visa-free regime to six Eartern Partnership (EaP) countries conditional upon a successful reforms record, visa liberalization as such lacks genuine support within the EU. Whereas the European Parliament and the Commission are supportive of visa liberalization, several member states are hesitant to allow visa-free travel with a new set of countries to the East.
It welcomed the progress made by some partners towards Visa Liberalization, especially Moldova, and the substantial progress achieved by Ukraine towards the completion of the first phase of its Visa Liberalization Action Plan and the ‘very good’ progress made by Georgia in the process of implementing the first phase of its Visa Liberalization Action Plan. Moldova is the first Eastern Partnership country to meet all the The most supportive member states requirements for visa-free travel are those neighbours who see the laid down in the Visa Liberalizaclear political and economic ben- tion Action Plan. efits of a visa-free regime, which was abolished when they acceded On 28 April 2014, Moldovan citito the EU in 2004 and 2007. A zens were granted visa-free entry to visa-free regime is still a distant 26 Schengen Area countries as well perspective for most EaP countries. as Bulgaria, Croatia, Cyprus and The EaP summit in Vilnius in No- Romania, countries that are applyvember 2013 said enhancing mo- ing the Schengen policy and also bility in a secure and well-managed Monaco, San Marino and Vatican environment remains a core objec- City, countries that have no immitive of the Eastern Partnership. gration control.
Migrants from Eastern European countries are particularly visible in secondary sectors of the labour market (agriculture, construction, household services) concentrated mostly in big cities, regions around capital cities and border areas. |Manafez Dubai |October ٢٠١٤ | 43
In Focus
The Global Talent Shortage I n the nine years since the first Talent Shortage Survey was conducted, a silver bullet has yet to be found to solve this global problem.
Jonas Prising, CEO, ManpowerGroup
A survey of over 37,000 employers in 42 countries in the first quarter of 2014 has found that 36 percent globally on average report having difficulty filling jobs, the highest proportion since 2007. Global employers continue to be plagued by talent shortages with skilled trades and engineers among the hardest jobs to fill. “Talent shortages continue to persist and are impeding employers’ ability to deliver value for their customers,” remarked Jonas Prising, CEO of ManpowerGroup which conducted the 9th annual survey. He added: “Due to the lack of applicants with the right technical com44 44 |Manafez |ManafezDubai Dubai|October |October٢٠١٤ ٢٠١٤||
petencies, experience and soft skills, one out of three employers struggle to fill open roles. For nearly a decade skilled trades and Science, Technology, Engineering, and Mathematics (STEM) positions are among the top 10 hardest jobs to fill, both globally and in the US.” The US-headquartered, $22 billion turnover ManpowerGroup works with nearly 500,000 clients and over four million associates each year. It operates a worldwide network of offices in 80 countries and territories. Among the US employers surveyed, 40 percent reported difficulty filling positions.
For the fifth consecutive year, skilled trades positions are the most difficult jobs to fill. Restaurant and hotel positions follow — the first time these jobs have been in the top 10 since 2010. Like many other advanced economies, the German economy is experiencing skills shortages in specific sectors, notably in engineering and IT. According to Talent Shortage Survey 2014, 40 percent of German companies have difficulty in finding qualified candidates for vacancies. This compares to 40 percent in the US, 21 percent in France, and 12 percent in the UK.
In
Over half of employers reporting a talent shortage say it is having a significant impact on their ability to meet client needs To address these shortages, international firms are increasingly looking to foreign workers. For the third consecutive year, Japanese employers report the highest level of talent shortage— more than four out of five employers are struggling to fill open jobs. However, this clearly remains a pervasive issue around the globe, with Peruvian, Indian, Brazilian, Turkish and Argentinian employers also reporting acute shortages.
Problem worsened in 10 nations
During the past 12 months, the problem has worsened in 10 countries, most notably Latin American nations. At the other end of the spectrum, employers in Ireland and Spain—two countries that have borne the brunt of the Eurozone recession report the least difficulty filling jobs.
Skilled trades hit hard
Global employers report the biggest talent shortages in the skilled trades category. Engineers are second on the list for the third year in a row. Moving up to third, are technicians in production, operations, maintenance and other roles. Sales representatives slipped one place to fourth. Sales manager positions are new to the top 10 this year, placing seventh (up from 12th in 2013). Laborers dropped out of the top 10 altogether due to declining demand over the last three years.
Over half of employers reporting a talent shortage say it is having a significant impact on their ability to meet client needs. This is consistent with 2013 findings, demonstrating that companies continue to see talent as a key driver to meet business objectives. The most common impact companies reported is a reduced ability to serve clients, closely followed by reduced competitiveness and productivity.
Increased staff turnover
More than a quarter says that increased staff turnover is a consequence of talent shortages, with 24
Twenty-three percent of respondents with talent shortages are preparing to adopt alternative work models percent citing a negative impact on employee engagement, innovation and creativity. The most common reason employers struggled to fill jobs is that candidates don’t have the technical competencies required. Other reasons include a shortage of available applicants, lack of experience or employability skills and misaligned candidate expectations. Just under half (47 percent) of companies that are addressing talent shortages are doing so by adopting new people practices including providing additional training and development to existing staff. Companies are also utilizing contemporary recruitment practices and re-
Focus
defining qualifying criteria to include individuals who lack some required skills or formal qualifications, but have the potential to acquire them.
Searching new talent
Twenty-five percent of respondents are searching for new talent sources, typically by recruiting from untapped or under-tapped talent pools (youth, older workers, women and military veterans). Others are appointing people who don’t currently have all of the needed technical skills, but who have the potential to learn and grow. Some respondents are partnering with educational institutions to ensure that courses align with their talent needs. Twenty-three percent of respondents with talent shortages are preparing to adopt alternative work models. One in 10 has increased their focus on their talent pipeline. Other employers are redesigning existing work procedures, offering flexible or virtual work arrangements or leveraging contingent workers.
Not pursuing right strategies
As in 2013, more than one in five global employers are still not pursuing strategies to address talent shortages. However, the lack of a single solution doesn’t mean that business can’t act. The answer rests with Human Resources (HR) - the one group with the expertise and influence to reshape their companies’ talent-base by acting decisively to ensure a sustainable workforce. The HR profession is rapidly changing and expanding. As the world of work evolves, new areas of expertise |Manafez Dubai |October ٢٠١٤ | 45
In Focus
are required to drive business results within organizations.
The evolving role of HR
Macroeconomic forces continue to decrease margins, creating a need for organizations to do more with less, and for their workforces to be more innovative and productive. In order to meet these demands, companies must access, mobilize, optimize and unleash the human potential of their workforce. This is a major shift.
vices impacts the demand for talent and assess whether or not the results align with their business strategy. Specifically, HR must ensure that their organizations have the right balance of skilled talent to meet changing needs and achieve business goals. HR leaders need to provide market intelligence supported by relevant data, understand their internal and external talent supply and how forces are reshaping the availability of required skills.
Due to the tentative economic recovery, 36 percent of employers continue to struggle to fill open positions. At the same time, unemployment continues to be a global problem.
Harnessing the data available to them as supply and demand experts, can help HR ensure that their workforce is aligned with the current and
Clearly there is an oversupply of labor and an undersupply of the right talent. The oversupply of labor comes after a global recession followed by a tepid economic recovery, while the undersupply of talent was exacerbated by rapidly changing technology and business dynamics.
In the Human Age, a onesize-fits-all approach to unleashing human potential is no longer practical
The skills required to meet employers needs yesterday, are already dated, widening the skills gap and perpetuating the global talent shortage. Because economic, demographic, technological and social forces will continue to evolve, companies must have a flexible and agile workforce. To achieve this, HR professionals must adopt three critical roles. Although HR practitioners have encountered supply and demand issues before, they are now expected to be the de facto experts. They must understand how demand for their companies’ products and ser46 46 |Manafez |ManafezDubai Dubai|October |October٢٠١٤ ٢٠١٤||
future needs of their organizations to drive speed, agility, innovation and productivity. The second role that HR must adopt is that of marketer. Since talent is now also a savvy and sophisticated consumer, HR needs to consider how organizational branding, messaging and image can help win in-demand skills. In a world of talent shortages, HR’s role has expanded to include attracting and retaining customers/talent, in the same way that marketing segments and targets consumers of the company’s products and services. HR must think differently and shift from one-size fits-all approaches to create value propositions that appeal
to the needs of individuals and align with organizational objectives. To access talent in an increasingly competitive marketplace, organizations must pinpoint and market their strengths to attract talent pools with the skills their businesses need to succeed. As with any consumer, companies must regularly seek out employee feedback to ensure that improvement is an ongoing process and act quickly to address any misalignment. Quantitative and actionable employee feedback will help improve engagement and ultimately benefit employers as talent is motivated and therefore, more productive and aligned with organizational needs. The third role HR leaders must adopt is that of designers-thinking differently about how to structure work to access, mobilize, optimize and unleash the potential of current and prospective employees. Instead of focusing solely on jobs, HR should expand its view to include the intended outcomes of work. To fully leverage the talent ecosystem, manage a diverse, and often virtual workplace, while continuing to increase productivity and innovation, work models should be reimagined. In the midst of the ongoing conundrum of an oversupply of labor and an undersupply of talent with the necessary technical and employability skills, companies must redefine the parameters of work. To drive results for their organizations, HR must focus on talent pools that will deliver on business strategy and allocate work and build accountability and rewards accordingly.
In
Unleashing human potential
In the Human Age, a one-size-fits-all approach to unleashing human potential is no longer practical.
Increasingly, the key to a company’s success and ability to quickly and effectively adapt to change depends on HR professionals. While not a silver bullet, the evolution of their role to
Focus
manage the supply and demand of talent, market to the talent needed and define and design work to drive business outcomes can directly address talent shortages.
2014 TALENT SHORTAGE SURVEY ManpowerGroup spoke to over 37,000 employers in 42 countries and territories to look at the extent to which they are having difficulty finding the right talent and what jobs are most difficult to fill.
10 JOBS EMPLOYERS ARE
TOP
36
54
%
HAVING DIFFICULTY FILLING
%
1
2
Skilled Trade Workers
OF EMPLOYERS REPORT DIFFICULTY FILLING JOBS
OF EMPLOYERS EXPERIENCING A TALENT SHORTAGE SAY THIS HAS A MEDIUM OR HIGH IMPACT ON THEIR ABILITY TO MEET CLIENT NEEDS
The highest proportion since 2007
6
Engineers
7
Management /Executives
Sales Managers
United States 40% increase of 1 percent
France 21%
decrease of 12 percent
India 64%
increase of 3 percent
China 24%
decrease of 11 percent
increase of 5 percent
decrease of 4 percent
5 TRENDS
5
4
3
2
8
9
Accounting & Finance Staff
10
Office Support Staff
1
Peru 67%
increase of 39 percent
Drivers
Brazil 63%
8
Shifting Demographics
Mismatch Between Talent Supply And Demand
4 India 64%
increase of 3 percent
6
decrease of 5 percent
Rapid Technological Development
Fast Growing Emerging Economies
3
5
AFFECTING TALENT SHORTAGES TODAY
decrease of 4 percent
Sales Representatives
2 Japan 81%
Germany 40%
Japan 81%
Technicians
IT Staff
5
10
1 decrease of 1 percent
4
COUNTRIES THAT TOP HAVE DIFFICULTY FILLING JOBS
TALENT SHORTAGES IN LEADING GLOBAL ECONOMIES
United Kingdom 12%
3
Panama 58% increase of 20 percent
Argentina 63% increase of 22 percent
7 Turkey 63%
increase of 5 percent
9 Colombia 57% increase of 27 percent
New Zealand 59% increase of 8 percent
10 Hong Kong 56% decrease of 1 percent
Lack Of Hard And Soft Skills Among Today’s Youth
ManpowerGroup Talent Shortage Survey 2014
Find out more here: |Manafez Dubai |October ٢٠١٤ | 47 www.manpowergroup.com/talentsurvey
opinion column
T he past 20 years have also seen our
young country become full part of the international community of nations, requiring Department of Home Affairs (DHA) effectively to manage the entry and exit of persons to and from South Africa.
By Malusi Gigaba Minister of Home Affairs South Africa
One of our top priorities is to clean up the National Population Register (NPR) which continues, for historical reasons, to contain significant inaccuracies. One of the main methods to clean up the NPR has been the campaign to persuade all parents to register their children within 30 days of birth. This remains a daunting challenge in our country where late registrations of birth, for historical reasons, remain a significant feature, resulting in significant breaches in and pollution of our NPR. Timely registration of birth must, and will soon be, the only way in to the NPR. One of the most tangible elements of our efforts to build a National Identity System is the Smart-ID Card which we began rolling out in October 2013 countrywide with a target of 1.5 million cards. The Smart-ID card is an example of technological innovation, with advanced technology, including biometric data, which has ensured that it has not been breached till now. This will have an enormous positive impact on our security and economy, with significant potential applications in financial services, governance, retail and ICT. We must manage immigration securely and effectively in a way which benefits
48 48 48 |Manafez |Manafez |ManafezDubai Dubai Dubai|September |October |October٢٠١٤ ٢٠١٤ ٢٠١٤ || |
our economy and society, heeds our international obligations and manages risks to national security. DHA is working to establish by the end of 2016 the Border Management Agency (BMA) which will be central to securing all land, air and maritime ports of entry and support the efforts of the South African National Defence Force. During the previous year, we facilitated the movement of 39 million travellers in and out of the Republic demonstrating that our ability to manage the flow of people in and out of the country is becoming increasingly efficient and robust. The new immigration regulations from May has been facilitating the streamlining of our permitting regime, improving the administration of visa-issuance, and regulating human movement into and out of South Africa. Opportunistically, South Africa is being advised to drop or relax visa requirements in a world where they are required of South Africans when travelling abroad and where security has become a matter of global concern. Our immigration management enables us to bring in workers and investors who contribute to economic growth. Our staff has done well to eliminate visa and permit backlogs, and proactively assist businesses with immigration issues. Excerpts from the speech during discussion on national development plan in parliament
opinion column
Benefits of well-managed immigration a believer in the benefits of wellI ’m managed immigration. This nation is
always at its best when we are open and outward-facing. We draw immense pride from living in a country which, throughout its history, has always said: if you come here, if you contribute, if you play your part, Britain will give you a chance. We believe everyone, no matter where they come from, should be treated with respect. Our heritage is a glorious patchwork of different cultures and influences. My mother is Dutch. My father’s mother a Russian émigré. My wife, Spanish. I am like millions of British citizens whose roots can be traced around the globe. I do not accept that we are condemned to the same trajectory we are witnessing across parts of Europe, where chauvinism and xenophobia are on the march.But I do believe that being a nation at ease with diversity and difference does not happen by accident. Successful immigration systems have to be managed. People need to see that they are good for society as a whole. And for years our immigration system wasn’t properly managed. So no wonder so many people still worry about immigration. We can keep Britain open-hearted, open-minded and open-for-business and at the same time ensure our hospitality isn’t open to abuse. It just takes a lot of work. We’ve been very effective on some of the worst loopholes – notably the fake student route.
People will no longer be able to play the appeals system so easily. We’re toughening up on people who exploit migrants as cheap labour. The fines increase for employers paying below the minimum wage has now quadrupled to up to £20,000 per employee. There will be no coming to Britain and claiming out-of-work benefits on day one. We’ve also made it impossible for newly arrived migrants to leapfrog local people patiently queuing for social housing. No one can tell you exactly how many people are living here illegally. The truth is nobody knows. There are estimates – anywhere between half a million and one and a half million.
By Nick Clegg Deputy Prime Minister United Kingdom
The government is upping the number of inspectors tasked, specifically, with identifying businesses hiring people, including migrants, for less than the minimum wage. We’re investing over a million pounds in a beefedup, bespoke team. We have a major problem in this country with people coming over legitimately with a visa and then overstaying their welcome once it expires. The second area where more needs to be done is European migration. The way freedom of movement works should change as Europe changes. I believe that, when the EU enlarges in the future, we’ll need to be stricter and clearer on the transition controls we apply to new member states. Excerpts from the speech delivered in the British parliament during immigration debate
|Manafez Dubai |October ٢٠١٤ | 49
Edited excerpts from a presentation on Govtech.com, an online portal about government and technology