Private sector 'must give more to society'

Abu Dhabi: The private sector in Abu Dhabi and the UAE is failing to meet its social obligations despite many privileges it receives, especially in terms of taxation, the weekly report of the Abu Dhabi Department of Planning and Economy (DPE) said.

The report warns of the increasing gap between the rich and poor in the country, estimating the number of millionaires, in dollar terms, to be growing at an annual rate of 15 per cent, amounting currently to 75,000 individuals - about 8.8 per cent of the UAE nationals' population.

"The private sector's social duty has not yet taken roots deep enough to translate into tangible contribution to Abu Dhabi and the UAE in general. This role is strictly limited to a slim 10 per cent of private firms, and the government continues to be the sole guarantor and sponsor of social development," the report said.

"Though the social role is still absent for 99 per cent of private firms, these entities continue to reap record profits, thanks to rising oil prices, economic boom and excellent facilities offered by the government," it said.

Corporate profits reported a 50 per cent growth in the first quarter of 2008, while the net profit for the UAE-listed companies are expected to grow by 36 per cent to Dh70 billion by the end of this year compared to Dh51 billion by the end of 2007 - which the report attributes to the privileged economic environment rather than the increase in efficiency of the private sector.

"Expatriate transfers exceeded Dh60 billion last year, usually growing by 13 per cent annually, with transfers of ownership accrued from corporate profit representing 55 per cent of the total of these foreign transfers against 45 per cent of transfers made from wages," the report noted.

The department calls for a serious consideration of the weak social role of businessmen and private entrepreneurs by the government, media, and even the Federal National Council (FNC), to come up with a clear all-out vision on how to organise and set social work in motion.

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