UAE Tax of the Day I

According to Al Tamimi's publication, Labour Law in the UAE (pdf):

The Pensions & Social Securities Law, Federal Law No. (7) of 1999, concerns UAE nationals employed in both the public and private sectors. It provides, amongst other things, for certain contributions to be made by the employee and the employer to the Public Authority of Pensions and Social securities. For a person employed in the public sector these contributions are equivalent to 5% of the contributory pension salary to be paid by the employee and 15% of the contributory pension salary payable by the employer. As for the private sector, the government shall bear 2.5% of the 15% share payable by the employer as contributions to the Authority.

Supply:
To make private sector jobs attractive to UAE nationals, it is very wise of the government to give nationals in the private sector participation in the government pension plan.

...And demand:
But, if your aim is to increase employment of nationals in the private sector you should not make it 12.5 percent more expensive to employ a national as opposed to an equally qualified expat.