The employee turnover rate in UAE is much higher. What do you think are the reasons and who is responsible for this?

That's what happens if you hire cheap labor.
It's something that you should expect.
Most likely, people willing to work at lower than normal pay don't have the skills or experience necessary to do the work - or have some other reason why they would accept low-paying job (for example, they may be from a South Asian nation and may have come to UAE on visit visa, often spending more than they can afford on visa and travel expenses - such people will grab the first job they get no matter how low the salary).
When you hire such people, you have to give them on-the-job training.
Then when their skill levels and experience goes up (or when they have more time to look for a better job), they have more chances to find a job with a higher salary.
Of course, as soon as they find a better opportunity, they are going to leave your organization; no one likes slave labor after all! And when they do, you will once again end up hiring inexperienced and incapable employees or desperate employees for below average salary and then again work hard for a year or two honing their skills.
And once their skills are honed, they will again leave your company for a better employer.
And the cycle will repeat itself.
So, really, if you want to retain valuable employees, or want to attract qualified employees and then retain them too, you have to give an excellent salary along with other benefits.
The benefits of giving a good salary are known to the best multinational firms, which is why many are opting to give above average salary and benefits to their most valuable employees.
Giving a high salary has its benefits: You reduce worker turnover, thus reducing recruiting costs, training costs, costs resulting from low quality work which is part of hiring inexperienced employees, etc.
In addition to that, you increase productivity because employees who are well-paid are happier and more satisfied with their job and such employees do better quality work.
So you may think that you save money when you hire cheap labor, but in the long run, you lose money because you have to keep incurring costs related to recruiting and training employees and you also lose profits and sales because of the low quality of your products / services! So, if you want to be more profitable and also reduce employee turnover, increase the salary level.
By advertising a higher salary you attract better qualified employees and you retain good employees instead of losing them to the competition!

This approach of hiring qualified skilled employees for very low salaries make them demoralize.
they work without having full loyalty.
they will consider their stay in organization as exploitation till they find a better place with better pay.
so their loyalty will always be in air.

well, I feel that, companies may not have clear recruitment policies and clearly determine job requirements, job description, incentive plan.
This is valid for low paid eployee who bosses many skills and have strong negotation power.Labor market is not intensly analysed ,deep consideration is not given to multi national employees, work environment is not clear or not encouraging ( every one seems to be a boss).

This approach of hiring qualified skilled employees for very low salaries make them demoralize.
they work without having full loyalty.
they will consider their stay in organization as exploitation till they find a better place with better pay.
so their loyalty will always be in air.

Becuase simply, people feel UAE is a very good opportunity and they expect alot. When they get there it is nothing as they expected. Therefore they feel dissappointed. Maybe, also that foreigners are treated unequally when it comes to papers and other legal issues.

Job satisfaction is an important factor. Many employers miis this fact. While employees accept recession as a reason for no salary increases, a motivating/encouraging word can revitalize your workforce.

Because simply they don't fell the job satisfaction which is the essential reason for turning over and also the governmental procedures with the Expatriates the responsible is the job owners and the government

cost of living index is high

I wonder if the companies realize how expensive and time consuming it is to recruit and driving in a new employee.
Or what affect it has on the company image when people are leaving.
If you know a company or a public organization that would be interested in improving the employee satisfaction and saving a lot of money as a result, let me know.

If you hire expertise on low compensation plan or you hire expertise not relevant to the job you are definitely going towards high rate of turn over.

Well, if you will look at it outside of the box, UAE is a place where more than75% of the workforce are expats, and what would be the aim of expats on why they want to shift to another country? greener pastures, living their dreams, and for a better career growth, majority of the people coming to Dubai are tourists, on a tourst visa, they will start to look for a job because that is one easy way to get here. Since tourist and visit visas expire quickly, so for the sake of not leaving UAE and going back to your country with nothing, they will be forced to end up in any job possible before their visa expires, so in short, most of them will be using the job as a stepping stone for their dream jobs. And here in UAE, competition is rampant among companies, employees will always seek for growth and since there are thousands of available jobs out there, they can have it all at their disposal. On the other hand, there are also thousands of job seekers out there, so companies will sometime cut costs by hiring cheap labors and people on tourist/visit visa (because it is easier for the processing), then in the end, the staff will just leave them hanging once the staff has settled and was able to look for a better offer. UAE has a very diversed workforce market.