US embassy cable - 03ABUDHABI945

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LABOUR MINISTRY ACKNOWLEDGES WIDESPREAD ABUSE OF "FREE VISA" SCHEME

Identifier: 03ABUDHABI945
Wikileaks: View 03ABUDHABI945 at Wikileaks.org
Origin: Embassy Abu Dhabi
Created: 2003-02-26 11:59:00
Classification: CONFIDENTIAL
Tags: ELAB PHUM ECON TC
Redacted: This cable was not redacted by Wikileaks.
null
Diana T Fritz  06/05/2007 10:20:15 AM  From  DB/Inbox:  Search Results

Cable 
Text:                                                                      
                                                                           
      
CONFIDENTIAL

SIPDIS
TELEGRAM                                        February 26, 2003


To:       No Action Addressee                                    

Action:   Unknown                                                

From:     AMEMBASSY ABU DHABI (ABU DHABI 945 - ROUTINE)          

TAGS:     ELAB, PHUM, ECON                                       

Captions: None                                                   

Subject:  LABOUR MINISTRY ACKNOWLEDGES WIDESPREAD ABUSE OF "FREE 
          VISA" SCHEME                                           

Ref:      None                                                   
_________________________________________________________________
C O N F I D E N T I A L        ABU DHABI 00945

SIPDIS
CXABU:
    ACTION: ECON 
    INFO:   P/M AMB DCM POL 
Laser1:
    INFO:   FCS 

DISSEMINATION: ECON
CHARGE: PROG

APPROVED: DCM: RAALBRIGHT
DRAFTED: ECON: GARANA
CLEARED: ECON: TEWILLIAMS

VZCZCADI410
RR RUEHC RUCPDOC
DE RUEHAD #0945 0571159
ZNY CCCCC ZZH
R 261159Z FEB 03
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC 8559
RUCPDOC/USDOC WASHDC
C O N F I D E N T I A L ABU DHABI 000945 
 
SIPDIS 
 
DEPT FOR G/TIP, INL, DRL, NEA/RA AND NEA/ARP 
 
E.O. 12958: DECL: 2/26/2008 
TAGS: ELAB, PHUM, ECON, TC 
SUBJECT: LABOUR MINISTRY ACKNOWLEDGES WIDESPREAD ABUSE OF 
"FREE VISA" SCHEME 
 
REF: ABU DHABI 47 
 
1. (U) Classified by DCM Richard Albright for reasons 1.5 
(b) and (d). 
 
2. (U) Despite ongoing efforts by the Ministry of Labour and 
Social Affairs to stiffen immigration regulations and 
curtail the influx of laborers entering the UAE under false 
pretenses, Ministry officials have told the local press that 
as many as 600,000 workers -- 27% of the UAE's total labor 
force -- entered the country under false work contracts over 
the last few years. 
 
3. (SBU) The work visas are obtained by UAE businesses from 
the Ministry of Labor for a specific economic activity, but 
often the alleged jobs are purely fictitious.  Arriving 
expatriate workers, often unaware of this situation, are 
told by their erstwhile Emirati employers that they must go 
out and find their own jobs -- and usually kick-back ten 
percent or more of their income to their nominal 
employers/sponsors -- or risk deportation.  So prevalent is 
this phenomenon, often referred to as the "free visa" 
scheme, that Ministry officials estimate that only 49% of 
the registered businesses in the country are legitimate -- 
the other 51% exist only to sell visas. Last year the Labour 
Ministry issued 260,000 employment visas. 
 
4. (C) Comment: Though the UAEG has recently implemented a 
high-profile amnesty program to encourage illegal workers to 
leave the country (see reftel), this new report demonstrates 
the extent of the problem and the difficulties confronting 
the authorities in reforming the UAE labor market.  The 
principal difficulty facing the Labour Ministry is that many 
Emiratis, particularly from the poorer northern Emirates, 
derive significant income from the exploitation of the 
visa/sponsorship process -- and the expatriate workers who 
are subject to it.  A strong regional political 
constituency, therefore, exists for maintaining the status 
quo -- which may help explain why the federal Labour 
Ministry is so willing to go public with these rather 
alarming figures. 
 
Wahba 

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