Emiratisation in the UAE: A 2023 Guide for Businesses and Job Seekers

Emiratization
March 22, 2024

Understanding Emiratisation

Emiratisation is the UAE government's initiative to integrate more Emirati citizens into the workforce, particularly in the private sector. While successful in the public sector, the private sector lags behind, with Emiratis making up only 0.34% of its workforce. This initiative aims to reduce reliance on expatriate workers and foster economic participation among Emiratis.

Objectives and Impact

The main goal is to boost Emirati employment, especially in the private sector. The government has set targets in various industries like banking, telecom, and hospitality, and launched initiatives like the Emirati Youth Empowerment Program and support for Emirati entrepreneurs. Emiratisation has shifted workforce dynamics towards a more balanced, inclusive environment, positively impacting society and the economy.

Challenges in Implementation

Retaining Emirati talent in the private sector remains challenging, with issues like limited career growth and work-life balance prompting many to prefer government jobs. A survey by PwC Middle East highlights this challenge, underscoring the need for a supportive work environment, training opportunities, and attractive benefits to retain and attract Emirati talent.

Emiratisation Laws and Policies

The new Emiratisation law (Ministerial Decision No. 279 of 2022) by the Ministry of Human Resources and Emiratisation (MoHRE) regulates employment quotas in the private sector, requiring a minimum of 2% Emirati employees. It categorizes companies based on compliance, with incentives and penalties for each. Non-compliant companies face fines and potential application suspension. The NAFIS program offers benefits to supporting companies, including pension and salary contributions for UAE nationals.

Current State and Future Prospects

NAFIS, or The Emirati Human Resources Competitiveness Council, is leading efforts to enhance Emiratisation in the private sector, targeting 75,000 citizens in five years. Companies not meeting targets face significant fines. However, many Emiratis in private companies consider returning to the public sector, indicating a need for improved retention strategies. Private companies must meet quotas and are encouraged to invest in future skills for Emiratis. The government continues to evaluate and adjust policies to ensure the effectiveness of Emiratisation, aiming for a skilled, diverse workforce contributing to sustainable economic growth.