FUJAIRAH REPORT

Government

Power is ultimately held by the ruler (Sheikh) of Fujairah, Sheikh Hamad bin Mohammed Al Sharqi, who has been in power since the death of his father in 1974. The Sheikh supposedly makes his own money by doing business, and the government funds are used for social housing development and beautifying the city, though there is little distinction between the state and his personal wealth. Any decisions regarding any aspect of law can be made by the ruler, although Federal laws are never repealed. But, it must be stressed that the ruler of the Emirate can choose to operate in a completely autonomous fashion.

The Cabinet of Fujairah is headed by the Sheikh and his immediate family, with a few members of respected local families making up the advisory committees. Any Cabinet decisions must be ratified by the Shaikh himself, after which they may be enacted into law as Emiri Decrees. Emiri Decrees are usually effective immediately, and without proper public consultation processes, can sometimes be confusing, causing not inconsiderable consternation amongst the inhabitants of the city.

Land

Foreigners or visitors are not allowed to buy land. Emirati nationals can purchase land from the government, after proving their nationality, which is usually the less expensive method. If there is no suitable land available via the official government offices, private purchases can also be made, with the eventual price being determined by the market and the individuals themselves.

Economy

Fujairah's economy is based around subsidies and federal government grants, distributed by the government of Abu Dhabi (the seat of power in the U.A.E.). Local industry consists of cement, stone crushing and mining. These industries have witnessed a resurgence due to the frenzied construction activity taking place in Dubai, the commercial powerhouse of the country. Notably, there is a flourishing free trade zone (http://www.fujairahfreezone.com), mimicking the success of the Dubai Free Zone Authority (http://www.jafza.ae) which was established around Jebel Ali Port, the busiest seaport in the region since the eighties. It has witnessed an exponential growth from 2003 onwards, leading to an expansion project that would double its capacity.

Federal government departments employ the majority of the native (local) workforce, with few opening businesses of their own, and many of the local citizens (also referred to as locals) work within the service sector. The Fujairah government imposes strict commercial laws which prohibit foreigners from owning more than 49% of any business or enterprise. Some of the reason why the free zone authorities have flourished to such an extent, is due to the relaxation of this rule within their boundaries, allowing full foreign ownership. Shaikh Saleh Al Sharqi, younger brother to the Shaikh, is widely recognised as the driving force behind the commercialisation of the economy.

Unemployment, however, remains a grave concern for the government. Conservative figures put the unemployment rate at around 50% - 60%, which is amongst the highest in the world. There is a fear that without affirmative and decisive action, there is a real danger that apathy and discontent could spread amongst the youth, which could prove to be an extremely volatile situation for future administrations.

Poor wages are also a problem in Fujairah, with construction workers at the bottom of the pyramid. On average a 12 hour working day, starting at 7 am and ending at 8 pm, will only provide about US$5 - US$10, out of which the workers pay for meals, transport and entertainment. Some companies pay the workers per day and some of them per month. It depends on the company that they work for and on the workers themselves (if they work for all the time they were assigned). Companies seldom pay for workers healthcare^{[citation needed]}, and these are hence responsible for financing their hospital visits, whenever the government doesn't subsidize it.

Future Developments

The present Shaikh is planning to make changes that will affect Fujairah in the future. Among other tourism projects in the pipeline is an $817m resort, Al Fujairah Paradise, near Dibba, on the northern Omani border, next to Le Meridien Al Aqah Beach Resort. There will be around 1,000 five-star villas as well as hotels, and it is expected that all the construction work will be finished within two years.

The Shaikh is trying to improve opportunities for the local workforce, by trying to entice businesses to locate in Fujairah and diverting Federal funds to local companies in the form of development projects.

Recently a Abu Dhabi-Fujairah Pipeline was announced which would create an oil export terminal in the emirate.^[1]