Table of Contents
Background
The United Arab Emirates implemented economic policies to guide domestic labor markets and advance citizen employment. Emiratization was implemented by the UAE Council of Ministers in the early 1990s, affecting both the public and private sectors. The National Human Resources Development and Work Authority Tanmia, which offers UAE citizens possibilities for work, training, and development, and the Ministry of Labor and Social Affairs are jointly responsible for implementing the strategy of Emiratization.
With a population of 10.17 million, foreigners make up 88.52 percent, and Emiratis constitute the minority at 11.48 percent. Emiratization is, therefore, a calculated move to correct this imbalance and reduce dependency on foreign workers. It also acts as a potent instrument for preserving Emirati culture and establishing national identity.
The UAE’s national workforce program, known as “Emiratization,” attempts to increase the number of Emiratis working in the private sector. It is a component of the UAE 2031 plan, which intends to double the nation’s GDP during the following ten years, from $405.6 billion to $816.7 billion.
Enhancing the Emirati Workforce Skill
The UAE Cabinet approved strategic resolutions backing Emiratization to assist the private sector in achieving job market equilibrium. Furthermore, it ensures that the rapidly expanding economy continues offering locals and Emiratis millions of opportunities.
Let us look at some of the most important resolutions making significant contributions in this context.
- Support for national skill development initiatives is encouraged by organizations and businesses in the private sector with low employee concentrations of Emiratis.
- Directing a portion of VAT income towards establishing skill-building and empowerment of graduate development programs.
- Establishing funds for developing specialized training programs that equip Emiratis with the necessary skills to improve performance.
- Implementing a new program that will yearly train Emirati graduates for six to twelve months in government, semi-government, and commercial organizations, paying Dh10,000, of which 40 percent will come from government funding.
- Modifying labor and pension regulations to provide Emirati workers with equal benefits and pensions to encourage Emirati workers to acquire new skills for career options in the private sector.
UAE has enforced a new strategy to increase Emiratization in the industrial sector and develop skilled local workforce capacity. In this context, a Memorandum of Understanding MoU has been signed by the Emirati Talent Competitiveness Council (Nafis), the Ministry of Human Resources and Emiratization, and the Ministry of Industry and Advanced Technology produced the initiative.
This is an effort to upskill national cadres and facilitate their access to skilled employment in the industrial sector. As part of the National In-Country Value (ICV) program, the program seeks to empower talent, improve skills, and create career opportunities for UAE citizens.
Emiratization In UAE Calculations Mechanism
The Cabinet approved a decision to raise Emiratization rates to 2 percent annually for skilled jobs in private sector establishments with 50 or more employees and to achieve an overall rate of increase by 10 percent by 2026
Employing at least one UAE national currently and at least two Emirati nationals from 2025 will be mandatory for private sector businesses with 20 to 49 employees. Companies with 20 to 49 employees that do not hire at least one Emirati in 2024 must give the government AED 96,000 in financial contributions. By 2025, this payment will rise to AED 108,000 for businesses that do not yet employ two Emiratis.
Emiratization Objectives In UAE
The objective of Emiratization in UAE in the private sector is to raise the competencies and abilities of Emiratis. To address this, training and development initiatives are meant to increase their competitiveness in the regional labor market.
The following are some of the goals for Emiratization in the private sector.
- Regulations & Compliances
- Partnership with the Private Sector
- Training & Development Programs
- Awareness and education campaigns
The Nafis Award
The Nafis Award was established to reward bright Emiratis who excel in the private sector as trainees and employees, as well as to honor the top private sector businesses that helped achieve the Emiratization in UAE targets.
The award works as a catalyst for the achievement of the government and leadership of the United Arab Emirates’ vision to encourage private sector businesses to increase the proportion of Emiratis in the workforce and contribute to developing the national economy system.
Mission, Vision & Values of the Award
This award aims to recognize and promote the efforts of businesses and Emiratis to raise the private sector’s Emiratization rates throughout the United Arab Emirates. Also, to improve the abilities and skills of Emirati talent and boost their competitiveness in the workplace, all of which help to improve productivity and sustainable development.
The following are the values of the Nafis Award;
- Commitment
- Sustainability
- Competitiveness
- Integrity
The Categories of the Nafis Award
The award will have three primary categories: the first will focus on private enterprises, the second will target individuals, and the third will target the Emirati Talent Competitiveness Council’s key partners.
First Category
The first category consists of private businesses that are registered on the Nafis platform and have met the Emiratization goals set by the following subcategories: medium-sized businesses with 500–999 employees, small-sized businesses with fewer than 499 employees, and large-sized businesses with 1,000 employees or more.
Second Category
The second category is aimed at individuals with programming jobs, retail jobs, banking jobs, legal jobs, medical jobs, nursing jobs, administrative jobs, professional jobs, leadership/supervisory jobs, programming jobs, and trainees enrolled in the Nafis Program.
Third Category
The third category focuses on the Council’s strategic partners. This will honor the efforts of the government and semi-governmental partners and contributions to realizing the Council’s Emiratization goals.
Final Thoughts
Emiratization is a strategy to improve human capital and achieve long-term sustainability, not only a system for job placements. The UAE government sets targets to achieve a balance between its native talent and its foreign labor through Emiratization. Our recruitment agency making sure this required balance of native talent and expats. This method promotes a more resilient, competitive, and varied economy by facilitating the transfer of knowledge, skills, and expertise to the Emirati workforce. Public-private partnerships are essential to ensure the sustainability and effectiveness of Emiratization. Establishing an environment that fosters Emirati talent, offers growth prospects, and motivates companies to develop human capital is a challenge, and the government of the United Arab Emirates is efficiently developing policies on it.
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