GCC: Umbrella social insurance system to promote labour mobility
Source: Middle East Insurance Review | Dec 2016
An umbrella system to accommodate social insurance for Gulf citizens working in any of the GCC countries will encourage the mobility of manpower among the six different states of the regional grouping, and realise economic and social stability.
Saudi Minister of Labour and Social Development Mufrej Al-Haqabani made these comments at the opening of a meeting in Riyadh of the heads of GCC civil retirement and social insurance departments. He said that fine-tuning and adjusting insurance protection among Gulf countries represent a fundamental pillar in GCC cooperation in order to promote labour mobility among the Gulf states, reported Arab News.
The minister added: “The interdependent systems of insurance face some problems, but it’s important to develop the working mechanisms of these systems, benefit from international experience, and develop mechanisms of improvement and follow-up. There are numerous ways in which we can improve the financial capacity of social insurance agencies and institutions in the region.”
He emphasised the importance of devising innovative solutions that should contribute to boosting insurance benefits and helping Gulf workers have access to labour markets in the region.
The Governor of the General Organization for Social Insurance (GOSI), Suleiman bin Abdul Rahman Gwaiz, said that the regional meeting would strengthen ways of cooperation among retirement and social insurance institutions in the GCC countries to extend the social protection system which was approved during a council meeting in Bahrain in 2004, and implemented since 2006. He also said that the social protection system mandates that each GCC country extend insurance protection for its citizens who work in any Gulf country. The number of subscribers to the system has increased to 28,000 at present from 18,000 in 2010, he added.