The law of Emiratisation is significantly unfolding in the dynamic economic landscape of the UAE. This transformative initiative pushes to integrate local Emirati talent into both public and private sectors to reshape the workforce dynamics of the nation and foster economic development. But what actually is Emiratisation UAE? What are the laws and policies placed in this initiative? How does it affect the public and private sectors? What is its impact on the nation’s economy?
We will cover all these questions in detail in this brief guide.
Emiratisation law in UAE
The Emiratisation law has been around in the UAE for over a decade. It was an initiative started by the UAE government to increase the employment of Emirati citizens in both the public and private sectors. It has been working hard to reduce the country’s reliance on expatriate workers and promote economic participation and development of the Emiratis.
Objectives of Emiratisation UAE
The Emiratisation law in UAE has led to a notable change in employment patterns. The key objective of this law is to involve more Emirati nationals in the workforce, especially in the private sector. With the institution of Emiratisation UAE, organizations are striving to create an inclusive workplace for Emirati nationals that values and accommodates their diverse talents and skills.
Furthermore, the UAE government launched several other initiatives like the Emirati Youth Empowerment Program, to support Emirati job seekers, providing them training and employment opportunities. Programs like the Mohammed Bin Rashid Establishment for SME Development offered funding and administrative support services for locally owned startups and SMEs.
Impact of Emiratisation UAE
The inclusion of Emiratis in various sectors generated a strategic shift towards a more balanced workforce, thereby creating a sustainable future for the country’s economy. It positively influenced the UAE society by increasing the value of Emiratis’ diverse talents and skills.
Nonetheless, the implementation of Emiratisation law in UAE has been a challenge. According to a survey, limited career growth opportunities, lack of work-life balance, and a preference for government sector jobs over skilled positions were some of the major reasons for Emirati employees leaving their jobs. These concerns highlighted the need to create a supportive work environment with attractive benefits and compensation for Emirati talents and provide them with training and development opportunities to retain them in the workforce.
New Emiratisation UAE Requirements
The new Emiratisation requirements that came into effect on 1 January 2023 applied to all UAE mainland registered companies, except the free zone companies. The updated amendments released by the Ministry of Human Resources and Emiratisation (MOHRE) stated that all private sector companies with 50 or more employees must increase the number of Emirati employees by 2% per year. This quota, however, didn’t apply to the banking and insurance sectors as they remained at 4% and 5% respectively.
Emiratisation quota
The Emiratisation quota of a company is directly proportionate to its size and the number of skilled workers it employs. Any individual or employee that falls under any of the following categories will be considered as a skilled worker:
Level 1: Professionals – doctors, engineers, lawyers, etc.
Level 2: Managers and executives – individuals in senior management positions such as CEOs, directors, and department heads.
Level 3: Technicians and skilled workers –workers with specialized technical skills, such as mechanics, electricians, and plumbers.
Level 4: Sales and marketing – workers in sales and marketing roles, such as sales representatives, account managers, and marketing executives.
Level 5: Administrative and support staff – workers in administrative and support roles, such as receptionists, secretaries, and customer service representatives.
The Emiratisation quota is classified as below:
- 0-50 skilled workers – 1 Emirati
- 51-100 skilled employees – 2 Emiratis
- 101-150 skilled employees – 3 Emiratis
- 151 skilled employees or more – 1 Emirati for every 50 employees
Benefits of Emiratisation UAE
The UAE government seeks to fulfill the following targets with the implementation of Emiratisation in the UAE –
- Economic benefits – Hiring UAE nationals in the private sector will help develop the economy of the nation by increasing productivity, innovation, and diversity in the workforce.
- Social benefits – The law will reduce unemployment issues and promote social stability and connectedness among the national citizens.
- Cultural benefits – The application of Emiratisation will reinforce national cultures and values in the workplace and provide a more welcoming and inclusive environment for employees.
Strategies for successful implementation of Emiratisation UAE
Emiratisation helps in forming a complete employee management cycle by integrating UAE nationals into the workforce.
Enhancing education and training
Improving education and training for Emiratis is one of the key strategies for successful Emiratisation. The “National Strategy for Higher Education 2030” discusses the labor market and equipment of future generations with technical and practical skills.
Thereafter, several initiatives such as the Federal Authority for Government Human Resources (FAHR) and the ‘Maharati’ system by the Ministry of Health and Prevention were launched to provide training and development opportunities to UAE nationals.
Promoting an inclusive work environment
Creating an all-encompassing work environment for Emirati employees is yet another strategy for successful Emiratisation UAE. Employers must make sure that their workplace policies and practices align with the values and culture of the Emirati workers. They must also ensure equal opportunities for all employees irrespective of their race, or gender, for prospering careers.
Giant corporations like Schneider Electric and KPMG Lower Gulf have incorporated revising recruitment strategies and policies to promote diversity and inclusion.
Attractive Emirati talent to the private sector
The significant gap between education outcomes and corporate life requirements can stand as a big challenge for attracting Emiratis into the private sector in the UAE. However, with the various initiatives and regulations implemented by the government in support of Emiratisation in the private sector, companies have been able to build a strong brand and retain Emirati talents. They strive to promote their values, mission, and culture to bring in more Emirati population through targeted marketing campaigns, social media engagement, and networking events.
Government initiatives
The UAE government has implemented several resources and programs like NAFIS to promote Emiratisation in the country. NAFIS is a National Initiative Emiratisation Platform that was designed to boost the competition of the Emirati workforce in the private sector. It included reforms, financial incentives, and other governmental benefits to encourage employers to participate in the award and drive work opportunities for fresher as well as experienced Emiratis.
Furthermore, the financial support and special treatment offered in government contracts enable more engagement of Emiratis. Besides, as per the law, companies failing to meet the specified Emiratisation targets will have to face hefty fines for non-compliance.
Potential challenges in implementing Emiratisation in the UAE
Although Emiratisation has helped achieve several goals, there are still challenges to achieving the targets fully, such as –
- Age problem
- No development
- Inefficient processes
- Short-term solutions
- The wrong motivations
- Foreign perceptions
- Significant disconnect
- Untapped resource
- Culture shock
- Executive Emiratisation
How can Shuraa help
Hence, businesses in the UAE are required to assess their Emiratisation status and align strategies accordingly to diversify their workforce, achieve organizational efficiency, and meet Emiratisation targets.
Shuraa Business Setup has been guiding companies in understanding their Emiratization requirements and helping them stay fully compliant with the latest legislation. Hence, if you need assistance with the new Emiratization rules or any other business setup-related concerns, please do get in touch with Shuraa at www.shuraa.com or email at info@shuraa.com
