Beyond the dazzling glamour, you will discover a gap separating the elite and their wealth from most Emiratis. However, compared to most countries in the world, complaints are rarely heard here, and the reason is simple: most Emiratis lead comfortable lives thanks to the benefits and advantages provided by the government.
Social Welfare System in the UAE
The social welfare system was established more than four decades ago under the leadership of Sheikh Zayed bin Sultan Al Nahyan in Abu Dhabi, contributing to the enhancement of long-term political loyalty.
Warnings Against Reducing Government Spending
Authorities and economists warn that the long-standing generous government spending and support for a strong Emirati middle class may eventually be reduced. Analysts say that the sustainability of the UAE economy requires steering more Emiratis towards self-sustaining private enterprises and moving away from generous state support.
Benefits and Advantages Enjoyed by Emiratis
The benefits enjoyed by Emiratis from the government are unreasonable in most countries around the world: tax-free income, subsidized high-quality healthcare, subsidized fuel, generous government pension plans, access to land for building houses with interest-free loans, and free higher education, even for studying abroad.
Future Challenges
The UAE government needs to direct more Emiratis toward sustainable private sector roles as part of its efforts to reduce dependence on generous government support. However, the demand for jobs exceeds the available supply in oil-rich Gulf countries.
Impact of Reducing Government Support
Without government support for housing and school fees for children, the percentage of Emiratis living on less than 80 dirhams ($22) a day will rise by 21 percent in Dubai and double in Sharjah, according to a study by the Dubai Economic Council.
Future Challenges
The UAE government needs to direct more Emiratis toward sustainable private sector roles as part of its efforts to reduce dependence on generous government support. However, the demand for jobs exceeds the available supply in oil-rich Gulf countries.
Future Challenges
The UAE government needs to direct more Emiratis toward sustainable private sector roles as part of its efforts to reduce dependence on generous government support. However, the demand for jobs exceeds the available supply in oil-rich Gulf countries.
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