The agreement was signed for the welfare of Indian manpower working in UAE. The pact was signed by Minister for Overseas Indian Affairs Vayalar Ravi and Labour Minister of UAE Gobash Sayeed Gobash after extensive discussions.

The pact provides for procedure for employment of workers, their responsibilities and regulations of the host country to be followed.

The MoU has a provision to constitute a sub-committee to implement the provisions of the MoU. According to an official press release, the discussions between the two countries will continue to take forward the initiative to ensure better working conditions for Indian workers.

Later Mr.  Ravi said that this MoU will strengthen the symbiotic relationship and mutual cooperation between the two countries. He said that the e-governance in migration project is a major initiative taken by the Ministry of Overseas Indian Affairs. He also hailed the measures taken by the UAE government to improve the condition of workers in UAE.

The revised MoU will boost the initiative of the Ministry in implementing Web Based Attestation Procedure for employment contracts for emigrant workers in UAE by the Embassy of India, Abu Dhabi. A need has been felt over the years to revise the MoU, which was signed between India and the UAE in December, 2006 to address various problems faced by the Indian emigrant workers in the UAE.

There are approximately 17.5 lakh Indians in the UAE, constituting the largest expatriate community in that country. Out of this, about 13.5 lakh are emigrant workers, mostly employed in construction, services and household sectors.  India-UAE trade, valued at US$ 180 million per annum in the 1970s, is today around US$44 billion making UAE, India’s largest trading partner.

There is an estimated US$6 billion UAE investment in India of which about US$ 1.92 billion is in the form of foreign direct investment, while the remaining as portfolio investment. UAE is the tenth biggest investor in India in terms of FDI.

The annual remittances made by the large Indian community in UAE (estimated to be around 1.75 million) amount to over US $5 billion.  They had actively invested in the past in the various bonds floated by India such as Resurgent India Bonds and the India Millennium Bonds.

The MoU between India and the UAE provides:-

(i)         Facilitation of the recruitment of Indian manpower for working in the UAE;

(ii)        Broad procedure for employment of workers;

(iii)       Responsibilities of the employers and workers;

(iv)       Exchange of knowledge and experience in job-creation and generation of employment opportunity;

(v)        Protection and welfare of workers under the labour laws and regulations of the host country;

(vi)       Authentication of the work contract between the Employer and the employee by the Ministry of Labour, Government of UAE; and


(vii)      Constitution of a Joint Committee comprising of at least three Members each from both the Governments to implement the provisions of the MoU.