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Population growth and its impact on retirement age in the UAE

Volume: 88  ,  Issue: 1 , November    Published Date: 08 November 2021
Publisher Name: IJRP
Views: 87  ,  Download: 41 , Pages: 49 - 56    
DOI: 10.47119/IJRP1008811120212408

Authors

# Author Name
1 Waheeb Al Kamali

Abstract

The United Arab Emirates has the highest population growth rate in the Arabs region, with approximately 10 million people (Elessawy, 2017). It reported a five-year growth rate of 1.31% between 2015 and 2020 (Khan et al., 2019). The vast population growth has been attributed to an increase in birth rates. UAE government recently encouraged its citizens to give birth to reduce the disparity in population demographics between the expatriates and UAE citizens. Furthermore, a sharp increase in the influx of expatriates accounts for such an unprecedented population growth rate. The country has recently experienced an oil boom, which increased the country's availability of business opportunities, attracting expatriates to take such advantages. The most significant concern for economists is how the revolution of technology combined with robust population growth will impact retirement age (Fisher & Ryan, 2018). The current retirement age in UAE is 60 years, but some workers can retire at 65 after getting approval, according to the UAE labor laws (Alkhawaja & Albaity, 2020). UAE is one of the leading technology hubs in the world. The country has significantly invested in technology and innovation. Ninety percent of people in the country are connected to the internet with personal computers at their homes (Coccia, 2018). As technological advancement takes center stage in the UAE, the availability of information will influence critical decisions from workers and the private sector at large. What is the preference of the private sector in the UAE labor markets? Given a robust technological advancement coupled with a sharp influx of expatriates in the country, the private sector, and the public sector will have tough decisions to make before choosing either experienced retirees or young graduates (Sarvari et al., 2020). This research paper seeks to understand the dynamics in the UAE labor market and prospects resulting from high population growth rate, technological advancement, and the private sector's emergence. Through preliminary studies, the paper seeks insight into the causes of the high population growth rate, effects of technological advancements, and private sector business on the retirement age decisions among UAE inhabitants.

Keywords

  • human population