Future poverty rate part 2

24/12/2020 Finance and investment | Mariam Ali Khamis Almansoori

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Part two:

Poverty rate is expected to increase worldwide due to the following:

      Fourth industrial revolution will potentially increase loss of employment particularly jobs that require low-education level.

      Forthcoming Skill gab increase in many countries.

      Average lifespan increase will create geriatric growth.

      Solitude and its psychological consequences.

      Divorce rate increase.

      Immigration rate increase.

It is unlikely for UAE to be highly affected by the increase of poverty worldwide for the following:

      UAE has proactively adopted strategies that utilize the fourth industrial revolution without jeopardizing employment security.

      Women's education increase and the subsequent increase of their income will limit the effects of divorce, should it occur.

Zakat will play a significant role in reducing poverty rate and bridging the gap between middle class and lower class by increasing zakat revenue through increasing the number of activity obliged to pay zakat and increasing zakat ratio.

Recommendation to reduce poverty rate in UAE:

      Encouraging youth to enroll in modern scientific specialties.

      Concentrating on technical and vocational education by increasing the number of schools of technical education.

      Developing unified standards for measuring poverty line on the level of UAE.

      Enhancing the linkage and integration between public authorities and philanthropic institutions in assisting needy families in UAE.

      Developing significant and unified standards to identify the amount of assistance paid to the needy people on the level of UAE.

      Unifying disbursement channels to poor families through developing a unified database in UAE.

      Adopting a gradual transition from assistance to production-input ownership.

      Enabling families to be producing then participating in the support of others instead of receiving assistance. 


Written by the advisor: Ahmad Saad Albadawi

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