With the emiratisation targets, the UAE aims to generate talents and resources for development. Similarly, they work to maximize the national workforce by carefully arranging their talents. Furthermore, they want to coordinate the activities of the public and commercial sectors to support the emirates’ economic development.
In this article, you will learn about this important topic for everyone who lives in the Emirates. Furthermore, the benefits of Emiratisation sustain the economy of the United Arab Emirates.
Understanding Emiratisation
The UAE government wishes, with the emiratisation targets, to promote the employment of Emirati citizens in the private sector. Also, it could be compared to what the government of Saudi Arabia is doing with Saudization. Likewise, the UAE government applied Emiratisation quotas that you can see below:
- Businesses with more than 50 employees, 2%
- For banks, 4%
- For insurance companies, 5%
These quotas are stronger in the insurance and banking sectors of the country. However, other entities required starting in 2017 on a trial basis with companies with more than 50 workers. Likewise, to meet the Emiratisation targets, they launched the Tawteen programs and the Nafis plan. Thus, employers met the employment quota of 2% of Emirati citizens on a payroll of 50 employees or more.
This means that for every 50 employees, there will be 1 UAE national resident. Also, to have greater reach, the government used the Nafis plan to reach the Emiratisation quota of 10% in 2025. In the same way, the streamlining business setup with PRO Services plays an important role in the process of the application of Emiratisation in the country.
Evolving job market and its impact on Emiratisation
The purpose of Tawdheef is to take advantage of the national workforce and contribute to locating the talent available in the UAE. As a consequence, Emirati competitiveness will increase and generate significant resources. In the same way, the decree of the annual increase in the Emiratisation quota of 2% is a challenge for many companies.
However, currently, the population of Emirati citizen workers will not be included in the quota number. Likewise, it is challenging since companies have problems attracting and retaining qualified national labor. However, companies may not apply the necessary measures to achieve the Emiratisation targets.
For example, long and short-term incentive programs, international subscription or training plans, all to attract and sustain national talent. On the other hand, in the health sector, there are few national professionals, so the government will allow the inclusion of foreigners.
The MOHRE reports new deadlines to meet the Emiratisation objective
Currently, the government of the Emirates imposed changes to the Emiratisation process in private companies that have more than 50 employees. Likewise, the changes are in conjunction with the modifications in provision No. 5/19 for 2022 in the Cabinet Resolution.
Now, companies will have to increase Emirati recruitment by 1% every 6 months. This is In contrast to the 2% that they cannot fail to meet each end of the year. Similarly, fees for non-compliance with the provision will be charged every six months and not as before, which was at the end of each year.
The implementation of the changes will aim at the safe continuity of Emiratisation in private companies throughout the year. Also, the MoHRE prioritized the Emiratisation of the United Arab Emirates in its agenda and strategy. All of this aims to maintain employment rates and the retention of nationals in private companies.
Likewise, the new provisions will not include added commitments or differences in payments for non-compliance. Additionally, companies with more than 50 employees will still have to get a 2% increase with Emiratisation.
Benefits of Emiratisation
With the fulfillment of the Emiratisation targets, the national government seeks to achieve the following benefits:
- Economic benefits. Hiring more Emirati citizens in the private sector will help develop the UAE economy. And consequently, increase productivity innovation, and diversity in the workforce
- Social benefits. Emiratisation reduces the unemployment of national citizens and promotes social stability and connectedness.
- Cultural benefits. With the application of Emiratisation, national cultures and values will be reinforced in the place where they work. Hence, the employer will obtain a more welcoming and inclusive environment for everyone who works in the company.
Challenges in Achieving Emiratisation Targets
Although there are indeed goals achieved, there are still challenges to achieving the full emiratisation targets. Below you will see what the challenges are:
The problem of age
One of the challenges is that the majority of the population has an average age of 31, which makes it very young. That is to say, in the emirates, there are few citizens of suitable age to work.
Vocational training but not development
The executives who have been trained believe that it has been hard, difficult, and uncomfortable but rewarding and they have managed to activate their performance capacity. However, in the UAE they are making enormous efforts for professional development and talent management that are not paying off.
Furthermore, this work to develop leadership or change the organization is training that ignores what could be transformative work. As a consequence, true development is hindered and a poor allocation of resources indicates that development is just a line to be checked.
Instead, it is necessary to apply an investment that truly trains nationals intending to expand Emiratisation. In addition, it generates well-established organizations in a broader context than what has been seen so far.
The processes are inefficient
Currently, more methodical and group thinking is needed, because talent management is not receiving adequate attention. Likewise, if a person with high potential is taken to cover the needs of leadership and develop it, it will cover executive-level roles.
Also, industries should prioritize procedures for Emirati individuals with high potential. Therefore, they could train them with the technical and human qualities that they will require to be leaders in their career path. Thus, in the medium term, it would be an investment in the organization of the state and the person.
Short-term solutions
Among the drawbacks to meeting the Emiratisation targets is the thought that it is easier to hire foreigners. Or rather, you will be able to work and improve your performance quickly without creating any inconvenience for the company. Furthermore, many times it will be the best option because there are no nationals in the country qualified to work in specific jobs.
However, it is important to see that although it may seem like the easiest solution, it is best to support the development of the UAE first. Even though, there is no reason for Emirati employers to hire national citizens or to hire foreigners. Also, to workers who are not qualified and who take advantage of reputation or connections to occupy certain corporate positions.
The wrong motivations
The CCG conducted a study on talent management and found that what hinders role performance is a negative attitude. Thus, those positions that require much more time and commitment are the least sought after due to the negative attitude towards these roles.
Equally, national citizens do not stay in their positions in companies because they will be able to work less if they occupy positions for the government. Hence, they would work less and receive a better salary and high status in return. Currently, to move Emirati nationals into administrative, technical, and managerial positions, MOHRE created the Emiratisation Association Centre.
Also, a government official stated that Emiratis reject jobs because they are not satisfied with their salaries. Likewise, according to a recent survey, Emiratis left their positions in private sector companies after 3 years of service.
On the other hand, employers who hired Emiratis said they mostly did not have the required communication and linguistic skills. Consequently, investment is necessary for the linguistic training of nationals to fill job positions that require it. Likewise, Streamlining Business Setup with PRO Services can achieve these objectives.
The perception of foreigners towards their jobs in UAE
One of the obstacles, although it may not seem like it, is how a foreigner perceives their work in a company in the emirate. That is to say, for an expatriate, work is about getting their money and then going to enjoy it in their country. Instead, the national would work for the development of the particular emirate in addition to its own prosperity.
A significant disconnect
It is necessary for everyone involved to assess to determine the effective way to make the Emirati work in sustainable ways. However, a way would have to be found to include foreigners working to create a broader picture in the UAE.
An untapped resource
In the United Arab Emirates, there is an untapped resource of Emirati women who are currently being trained for senior and vice president positions. Likewise, they fill motivated, committed, and brilliant in their work performance in companies. Additionally, 82% of those registered for the Emiratisation program were women who wanted to work.
National women have a lot to contribute and are sparking interest in the potential and talent they have. Therefore, this source of hidden talents that had no credit has a great future. Thus, these women want to participate and integrate; they could contribute greatly to the development of the country. This represents a great change in some politics in the labor sector that sees an opportunity that take advantage of this talent.
Culture shock
An obstacle to the emiratisation targets is the culture clash of uniting Western and Emirati cultures. Hence, it can produce a working relationship of caution and a lot of distrust between employees from different cultures. Likewise, many aim to favor Emiratis over expatriates, demonstrating a distrust of natives who are at higher levels.
It is for this reason that companies must become very aware of this drawback and stop the negative consequences. Otherwise, this will be a hindrance to efforts to implement Emiratisation and the impact it will have on businesses as a whole.
Executive Emiratisation
Applying a change could be complicated because division could grow with a facade of compliance that will prevent true understanding and unity. Likewise, the best way to address business cultural change is through tiered implementation. That is, top management could be the one who models the change and those who intervene at lower levels will support it.
However, there is a shortage at the Emirati ExCo level that does not allow this model as a viable alternative. Thus, the solution to success is to ensure that Emiratis occupy executive positions in national companies. Also, to achieve the goals set for Emiratisation of a 50% participation in the private sector there will have to be a change of thinking.
Likewise, in the Emirates, the population qualified to work is 20%, which is not enough to cover the entire necessary labor field. Thus, it is not advisable to think about supplanting all foreign workers in the country. Consequently, we need them to continue playing a successful role in the national economy.
How Emiratisationgateway will help you achieve emiratisation targets
With our emiratisation services, you can quickly obtain Emirati talent to fill the job position that requires it to meet the emiratisation targets. Besides, as we are pioneers in the growth of the local workforce, we will be able to guide you through the regulations that Emiratisation calls for.
More exactly, you can find with us the next services:
- Hire Emirati national staff. We are qualified to find and offer the best national talent for your company. Furthermore, we are experts in recruitment and the industry and will be able to provide you with the necessary qualified personnel in a short time.
- Find jobs. We can also match a qualified Emirati professional with a business industry that requires their talent.
Furthermore, the talent solutions we offer are local, to stimulate the Emirati workforce. As a result, we foster the growth, innovation, and success of the UAE economy. Thus, if you want to meet the Emiratisation targets to comply, contact us.
