By Anna Oustry

Over the last decade, the United Arab Emirates (UAE) has been taking steps towards energy transition, shifting away from its traditional position. As a rentier state, the UAE has historically been opposed to climate reduction measures in international climate negotiations due to the potential threats posed to its fossil fuel industry. With one of the world’s highest carbon footprint per capita, the country’s climate commitments have been deemed “highly insufficient” .

In recent years, the UAE has been actively seeking to position itself as a global leader in renewable energy projects and investments. The Gulf country publicly recognizes the benefits of transitioning towards clean energy policies for ensuring long-term national economic security. The UAE asserts that climate mitigation policies are a means for the country to diversify their rentier economy, meet future energy demands domestically, and continue exporting fossil fuel energy. Since 2017, the country has set a number of targets to diversify its energy sources and enhance energy efficiency by 2050. They aim to reduce their reliance on gas from 88.3% to 38% of total energy consumption in 2050. On the other side, they aspire to increase their use of renewable energy from 6% to 44% of energy consumption but also plan to make up part of their shift away from gas through increasing the use of another fossil fuel, coal, from 1.7% to 12% in 2050 .

At first glance, the country’s presidency of COP28 from 30 November to 12 December 2023 emphasises the government’s commitment to address climate change and indicates to the international community its desire to play a leadership role in global environmental negotiations.  Nonetheless, news reports immediately prior to the conference conflicted with this image. Notably, in the days leading up to the start of COP28, leaked documents detailed the UAE’s intention to leverage the conference for the pursuit of new oil deals. In the same line, as the international event drew to a close, the country  expressed, alongside OPEC countries, its reluctance to adopt the term ‘phasing out’ of fossil fuels in the draft text of the climate deal. 

In a more pragmatic light, however, beyond the endeavour to comprehend its ambivalent discourse, it is evident that the UAE encounters a major domestic obstacle in the form of its labour market when it comes to achieving its set energy goals. The increasing demand for energy transition puts pressure on Emirati labour and would require the growth of an international “green skilled” workforce in some specific energy sectors. Simultaneously, the demand for more foreign workers encourages the state to improve the kafala system and regularly update visa regulations to support companies in their hiring procedures, while also retaining control over the influx of foreign labourers through monitoring and security systems. Before delving into this analysis, it is important to note that this emerging phenomena remains only perceptible on a small-scale insofar as the Emirati green energy sector is not in a position to compete with the fossil fuel industry. To this date, the state does not seek to significantly enhance its competitiveness and profitability. 

The rising demand for high-skilled workers in the clean energy sector

The proliferation of the clean energy sector creates a new labour market demand with specific jobs and skill requirements. Nonetheless, the current labour workforce of the energy sector does not meet the required skills and the knowledge to implement sustainable energy projects in the renewable energy sector. The green industry requires a certain level of proficiency and expertise in specific fields: design and construction, mechanics, electrical technical engineering and computer literacy. The industry also requires workers with English fluency and problem solving skills. Therefore, the government of the UAE and private companies recognize the importance of attracting human capital from abroad to fill the skills and jobs required in the green energy sector, as most of the green jobs will be created in the private sector rather than the public sector. The clean energy industry has invested in creating new occupations with entirely new job portfolios, occupations and entrepreneurial opportunities in the following sectors: solar energy, energy efficiency including district cooling technologies, hydropower and nuclear energy. Mid-level professionals are mainly from the Philippines and India, while long-term and skilled workers from Western countries, particularly North America, Spain, Germany, and the United Kingdom, are hired for management or other senior positions. Senior level workers are also from other Arab countries, India and Pakistan.

With regards to low-skilled workers, as much as other industries such as the fossil fuel industry, clean energy companies require low skilled and temporary workers for the construction and maintenance of the sites. These workers come primarily from South and Southeast Asia including Nepal, India, Sri Lanka and the Philippines, and are typically hired on short-term residency contracts ranging from six months to four years.

In total, the UAE expects the number of green workers to reach approximately 110,000 by 2030, with Dubai and Abu Dhabi being the primary destinations for employment in the private sector. This represents a threefold increase from the 3,510 jobs created in 2018. In the solar energy sector in particular, the number of jobs is estimated to increase from 49,000 in 2021 to 81,372 by 2030 .

Adjusted migration and security policies 

As foreigners constitute 81% of the total labour workforce, the Gulf country seeks to attract international low-high-skilled workers to respond to this increasing labour market demand in the green energy industry. Indeed, the UAE’s immigration department has been actively re-evaluating its migration policies and security measures.

Firstly, the increasing need for low-skilled workers in the UAE’s clean energy sector and beyond , has encouraged the government to continue reforming the visa-sponsorship kafala system. Under the kafala system, migrant workers are employed through a sponsorship system where their immigration status and legal residence are tied to a specific employer or sponsor. Similar to other countries of the region, the Emirati kafala system has faced accusations of contributing to human rights violations. Amnesty International states that it facilitates forced labour, with workers at risk of passport confiscation by the employer or deportation by the state on the employers’ behalf if they are found to have “absconded” from work. While the government has made efforts to address international concerns about human rights violations by implementing some reforms, these measures are relatively few and have achieved limited success. In 2009, the implementation of the mobility law and wage protection system took place, followed by the enforcement of policies in 2012 to curb fraudulent practices in transnational labour recruitment. In 2016, the UAE government introduced reforms that allowed workers to change jobs without being subjected to an employment ban, provided they gave advance notice. Additionally, workers might be required to compensate their employers.

More recently, in January 2023, the UAE has implemented an unemployment insurance scheme, mandatory for all workers, except for temporary workers and domestic workers. As of November 2023, 6.6 Million have subscribed to the scheme. The scheme’s annual instalment costs range between US$16 and US$32. Nevertheless, several rights organisations are already casting doubt on its effectiveness in safeguarding low-skilled workers in reality . This scepticism arises from the fact that these workers rely on their employers’ sponsorship, rendering them unable to reap the advantages of the program within the constrained thirty to sixty-day timeframe for securing employment before their residency status lapses.

With regards to workers with higher skills, the UAE has also implemented measures to attract and retain mid- and high-skilled workers of the clean energy sector. The government aims to facilitate their long term establishment in the green energy sector. Recognising the global competition for talent, the country has targeted skilled employees and introduced various visa schemes to incentivise investment, entrepreneurship, and talent mobility. The Green Visa, created in 2019, offers a five-year visa without the need for a sponsor, and working visas can be extended for up to six months. Similarly, the Gold Visa programme, available from 2020, grants selected investors, entrepreneurs, and talented individuals a ten-year residence permit. These initiatives demonstrate the UAE’s commitment to attracting and retaining skilled workers and promote the growth of the clean energy economy.

Nonetheless, these new migration inflows of foreign green workers in the UAE put pressure on the existing security challenges faced by the Emirates, and hence force the government to prioritise security in its political agenda. Indeed, the Emirati government faces a complex challenge of controlling the large foreign population on its territory, managing the national demographic imbalance and addressing the potential threats posed by the longer-term settlement of non-Emirati citizens. As second and third generations of migrants in the UAE have become more common, the distinctions between nationals and non-nationals has become increasingly blurred. This has led to concerns among Emirati nationals that the presence of non-national citizens poses a threat to the ‘Emirati’ cultural heritage and values. To address the security challenges, the UAE has invested exorbitant amounts of money on contracts for maintaining its security apparatus and adopting the latest surveillance technologies. The Gulf country has developed many surveillance and security networks through detailed information databases of foreigners, classified DNA tests to categorise groups and verified heritage.

Traditionally, the government of the UAE has also used the naturalisation policy as a means to control migration and preserve national security. This policy involves a long and rigorous process, requiring ten years of continuous lawful residence in the UAE for Arab expatriates, and thirty years of residency for non-Arab expatriates. Such a policy reflects the challenge faced by the UAE in reconciling its security apprehensions with the need to attract and retain skilled employees. Nonetheless, the recent move by the government in 2021 to allow expatriates to obtain nationality under clear criteria represents a rare move for Gulf countries. This policy’s implementation demonstrates the state’s urgent priority to attract high-skilled workers – such as investors, talented workers, scientists, and doctors – despite concerns over potential cultural and security threats posed by expatriates. This change in policy benefits high skilled workers. However, it remains unclear whether these new citizens will have access to the public welfare system.

Thus, over the last few years the UAE has been adapting some security and migration policies to respond to the increasing demand of foreign workers in the clean energy industry. Yet, it is important to keep in mind that these policies, specifically designed for the green sector’s demand, are limited and not much visible. This is because the industry remains very small compared to the fossil fuel industry which remains the main sector prioritised by the Emirati government as it announced aims to boost oil and gas production by 2030. Additionally, the worth of the clean energy industry in the eyes of the Emirati government is adversely affected by the numerous financial and technical challenges involved, including the industry’s current lack of competitiveness with the fossil fuel sector and the absence of long-term profitability as of today.