Emirati workforce in the private sector increased by 33% in 2023
The number of Emiratis working in the private sector has increased by more than a third so far this year, reaching close to 68,000,More than 17,000 residents joined private enterprises in 2023, according to data made public by the Ministry of Human Resources and Emiratization.
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United Arab Emirates
The UAE has started a significant initiative to increase local employment in the private sector, which continues to be a primary engine of economic growth,The ministry reported on Saturday that, as of May 17, 67,988 Emiratis were employed in the private sector, up from 50,228 at the end of 2022. This is a 35% increase.
The number of people working in the private sector has more than quadrupled since the end of 2021,By the beginning of 2027, the UAE wants to guarantee that 10% of workers in the private sector are Emirati,Under the proposal, companies with at least 50 employees are required to hire 1% more Emiratis every six months or pay a Dh42,000 ($11,440) punishment for each post that remains vacant.
Companies were given the mandate to boost the percentage of Emirati employees on their payroll to 3% by June 30 from the aim of 2% by January 1.
Emiratisation strategies for the development of the national workforce
The Emiratisation programme, according to Vijay Gandhi, director at HR and recruiting agency Korn Ferry, is already paying off,In terms of cultivating and luring Emirati talent, it is already effective, according to Mr. Gandhi.
Many businesses are embracing it and discovering that they have access to a wealth of talent,The majority of the firms we spoke with have accepted the challenge and are relishing it,Banking, communications, and financial services are among industries where Emiratis would fit in well with the current workforce, he noted.
Another expert stressed the value of supporting local talent,We owe it to the nation that has welcomed us to return the favour, according to HR specialist Claire Donnelly,The entire purpose of having expats in the area is to benefit from their expertise and learn from it.
Managing Director of McKinsey Jones Group
Rather than putting up the effort to create robust emigration procedures, David Mackenzie, global managing director of the recruitment firm Mackenzie Jones, warned employers against taking the easy way out and accepting penalties,Some people view the fee as a business expenditure, much like a tax, and assume they can just accept it, according to Mr. Mackenzie.
"However, in the long term, it will be much less expensive to just hire the employees and educate them if corporations continue to get fines,The UAE government is highly intelligent, and businesses breaching the law will continue to receive fines until they become prohibitively expensive.
According to him, businesses would lose talent if they failed to incorporate Emiratis into the workforce, in addition to financial costs,We just hired two great Emirati applicants for HR positions, according to Mr. Mackenzie,It's not an issue of the talent not being there since they would still be in the top division if they worked for a western corporation.
The Ministry of Human Resources and Emiratization issued an additional incentive at the beginning of the month to encourage businesses to abide by the laws,A punishment of Dh500,000 ($136,160) will be assessed if any attempts are made to lower the number of workers or alter job titles in an effort to circumvent the emigration requirement.
Companies were advised to see achieving emigration targets as a chance to draw on local knowledge and skills rather than just as a means of meeting quotas,Emiratization is more than merely filling quotas, Ola Haddad, director of human resources at employment portal Bayt.com, called it a "strategic initiative towards sustainable development, integrating Emiratis into our workforce in a manner that utilises their unique skills and experiences."
Both enterprises and the country's employees benefit from this,The success of emiratization depends on creating an atmosphere that empowers Emirati professionals rather than just satisfying quotas.