The United Arab Emirates (UAE) GDP per capita is a whopping 49,000, and the unemployment rate is as low as 2.4 percent. At first glance, the country appears to be thriving with room for growth; yet, there is a large population living in poverty in the UAE. This is not present in the news as the focus is usually on the prosperous citiesof Abu Dhabi and Dubai, both of which control the majority of the UAE’s total wealth.
This media focus gives outsiders the illusion of a rich and prospering country, and here are 10 facts about poverty in the United Arab Emirates worth knowing.
Facts About Poverty in the United Arab Emirates
- There is no official data on poverty in the UAE. The government does not release official data regarding any local poverty levels. This lack of facts should raise some questions regarding the government’s concerns and relief efforts.
- The UAE is one of the top ten richest countries in the world, and yet a large percentage of the population lives in poverty — an estimated 19.5 percent. This percentage is alarming as the nation is still considered wealthy on the whole even though almost a fifth of its people are not.
- Abu Dhabi and Dubai control 83.2 percent of the UAE’s wealth. This means that the other five emirates depend on the federal government for financial support.
- At least 98 percent of the families that get help from government aid have loans that prohibit them from paying for living essentials. Some blame this on the high standards of society and the cost of living expenses in the UAE.
- There are rules to receiving governmental financial aid. Before one is eligible for aid, the government looks at a family’s income, properties, ratio of family member to rooms, rent and health statuses.
- Poverty in the UAE can be seen in the labor conditions of the working class. Migrants come to Dubai looking for work and send remittances back to their families. They are promised good pay and healthy living conditions; unfortunately, these assurances are rarely fulfilled.
- The economic crisis of 2008 confused poverty statistics. Pre-economic crisis, the poverty rate of the UAE was around 20 percent; currently, the UAE reports their poverty rate to be zero, based on a poverty line of around $22 a day.
- Reporters in the UAE are discouraged to write about poverty. The government controls information surrounding the state and has the power to suppress facts about reality.
- The economy is entirely dependent on trade and oil. Thus, government subsidies are needed when global prices fall.
- Economic distinctions are based on nationality and gender. Women are routinely discriminated against in hiring decisions, contributing to a gap in the poverty rates.
Room for Growth in the UAE
These facts about poverty in the United Arab Emirates show that although stable in many regards, the UAE could do with foreign aid and government assistance.
While the country has impressive employment rates and GDP per capita, the percentage of citizens living in or at poverty level is striking. Thankfully, the local government of the UAE has implemented assistance programs in an effort to reduce and relief local poverty. But also in the meantime, assistance should be offered and readily available for those in need.
– Haley Hine
Photo: Google
FAQs
The country's economy is heavily reliant on migrant workers, who make up 88% of the population and are poorly paid. The poverty rate, defined as a daily income of less than 80 dirhams ($22) is 19.5%. 98.13% (95.8% for women, 92.56% for men).
How is UAE helping poor people? ›
At the international level, the UAE is a key contributor to many international humanitarian initiatives, especially in providing relief to victims of natural disasters and socio-conflicts. Between 2011 and 2014, the UAE donated AED 8.9 billion to eradicate poverty worldwide.
What is UAE doing to reduce poverty? ›
To achieve the End Poverty Goal, the UAE has focused on education, economic growth, attracting investments, creating jobs, focus on the labor market, provide social support, and develop the tourism sector, finance businesses, and start-ups.
What is the cause of poverty in the UAE? ›
Poverty in the UAE can be seen in the labor conditions of the working class. Migrants come to Dubai looking for work and send remittances back to their families. They are promised good pay and healthy living conditions; unfortunately, these assurances are rarely fulfilled.
What is the poverty rate in the Arab world? ›
Money Metric Poverty
According to the $1.9 per day poverty line, the Arab region's headcount poverty ratio in 2015 was approximately 5.6%. The Arab region reduced $1.9 poverty rates from 1990 to 2015 but it increased it from 4% in 2010.
How does UAE help people? ›
The purpose of UAE aid is to increase international peace and stability through the eradication of poverty, while guaranteeing improvements in the living standards of individuals regardless of their religion, language, identity and race.
Is UAE the most generous country? ›
For the fifth year running, the (OECD) named the UAE as the world's largest Official Development Aid donor relative to national income – giving Dhs19. 3 billion to 147 countries in 2017. We share our good fortune with all humanity.
Is living in the UAE good? ›
On the pros side, the UAE offers a high standard of living, with world-class infrastructure, excellent healthcare, and top-notch education options. The country is also incredibly safe, with low crime rates and a strong police presence.
How is obesity affecting the UAE? ›
The health professionals and experts in the UAE consider it is an epidemic. According to Baxar (2009), about 71 percent of Emirati population is currently obese. If this trend continues, the obesity level will rise to about 81 % by 2019.
Why is obesity a problem in the UAE? ›
Causes of Obesity in UAE
Lack of Physical Activities. Improper and Unhealthy Diet and Nutrition. Genetic. Behavioral and Environmental Factors.
Yet the UAE must grapple with the same challenges that have Afflicted the poorer Middle East states: rapid population growth, lack of economic diversification, low oil prices, low water supplies and dependence on foreign labor.
Was UAE a poor country? ›
The United Arab Emirates is a high-income developing market economy. The UAE's economy is the 3rd largest in the Middle East (after Turkey and Saudi Arabia), with a gross domestic product (GDP) of US$415 billion (AED 1.83 trillion) in 2021-2023. $509.18 billion (nominal; 2023 est.)
What is the poorest emirate? ›
The Emirate is currently ruled by His Highness Sheikh Humaid bin Rashid Al Nuaimi, Supreme Council Member and Ruler of Ajman, and the Crown Prince is Sheikh Ammar Bin Humaid Al Nuaimi. Ajman is the poorest member of the United Arab Emirates economically.
What is the poorest country in the world? ›
Africa
- Somalia.
- South Sudan.
- Sudan.
- Tanzania.
- The Gambia.
- Togo.
- Uganda.
- Zambia.
According to estimates by the International Monetary Fund (IMF) this year, the UAE has been ranked the seventh richest country in the world based on per capita GDP (Gross Domestic Product) of approx. AED 326,760.
How much money is considered rich in UAE? ›
You need a net worth of $1.6 million to join the UAE's richest 1 per cent, according to a report in May by global property consultancy Knight Frank.
What is considered rich in UAE? ›
That's AED 180,000 per year. Assuming you park the money in a bank account/conservative portfolio where the inflation adjusted return is 1%, and you have about 60 years left to live then you will need to have cash worth AED 8 Million. If you have more than this then you rich.
What is considered high income in UAE? ›
Yes, a monthly income of 40,000 AED in Dubai is regarded as a high salary. Moreover, this level of income comfortably supports living expenses, including accommodation, dining, and basic activities, ensuring a quality lifestyle in the city.
