Emirati students, businesses and human resources experts will gather in Abu Dhabi today to consider how to raise the number of nationals employed in the private sector from the existing level of less than 2 per cent of the total workforce.
For years, the Government has made great efforts to try to attract more Emiratis into the private sector including quotas and the latest initiative of declaring 2013 to be the year of Emiratisation.
Emiratis occupy less than 2 per cent of the 2.2 million jobs in the private sector, according to research from TCO Management Consulting. A 2011 labour report released by the National Bureau of Statistics in November showed Emiratis make up only 0.5 per cent of employees in the private sector.
The data reinforces a trend that has been consistent since the development of the country more than four decades ago: that the Government remains the employer of choice for most Emiratis.
As the public sector matures and pressure builds on state finances, the need to break the pattern is becoming increasingly critical.
How to encourage more nationals into other employment channels will be the focus of the Emiratisation Summit 2013. The summit gets under way with the Emirati Youth Forum, a platform to allow more than 100 students to discuss their career aspirations with prospective employers.
One of the aims of the event will be challenging preconceptions about the Emirati workforce. Shorter working hours, higher pay and a working environment more in tune with their cultural background are all commonly cited by human resource experts as the reasons for nationals shunning the private sector for the Government.
"The decision to move into the private sector for Emiratis has been marred by stereotypes and doubt," said Mawya Al Qaissieh, a 27-year-old Emirati who moved from the public sector two years ago to become a communications manager at Reem Investments, an Abu Dhabi-based investment company in the private sector.
"My advice to the Emirati youth is to identify their career goals before they decide to join the public sector or the private sector. Their decisions should not be based on stereotypes."
The Cabinet passed a decree in 2005 that stipulates companies operating in trade and commercial activities with more than 50 employees should maintain an annual 2 per cent Emiratisation quota.
In recent years, it has been family-owned or local companies which have made the most strides employing nationals.
For example, Majid Al Futtaim Holding, which develops and manages several hotels and shopping malls, has a unit dedicated to promoting the employment of nationals.
Progress is also being made in other sectors. Banks have been set a target of raising the number of Emiratis they employ every year by 4 per cent until 40 to 45 per cent of staff are Emirati. Abu Dhabi Islamic Bank is among the industry leaders in the Emiratisation drive. By the end of last year it aimed to raise its staff numbers to 50 per cent.
Emiratisation levels are generally lower among multinational companies than local private sector firms.
Overturning the trend will require a refocus in education and training involving teachers, employers and students themselves, said Sulaf Saleh Al Zu'bi, the chief executive of Injaz UAE, a non-profit organisation seeking to encourage entrepreneurship among nationals.
"As well as learning English, maths and other subjects, students should also become more knowledgeable in soft skills, team work and career planning," she said.
tarnold@thenational.ae
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Tank warfare
Lt Gen Erik Petersen, deputy chief of programs, US Army, has argued it took a “three decade holiday” on modernising tanks.
“There clearly remains a significant armoured heavy ground manoeuvre threat in this world and maintaining a world class armoured force is absolutely vital,” the general said in London last week.
“We are developing next generation capabilities to compete with and deter adversaries to prevent opportunism or miscalculation, and, if necessary, defeat any foe decisively.”
MATCH INFO
Liverpool 2 (Van Dijk 18', 24')
Brighton 1 (Dunk 79')
Red card: Alisson (Liverpool)
Gifts exchanged
- King Charles - replica of President Eisenhower Sword
- Queen Camilla - Tiffany & Co vintage 18-carat gold, diamond and ruby flower brooch
- Donald Trump - hand-bound leather book with Declaration of Independence
- Melania Trump - personalised Anya Hindmarch handbag
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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The specs
Engine: 4.0-litre V8
Power: 503hp at 6,000rpm
Torque: 685Nm at 2,000rpm
Transmission: 8-speed auto
Price: from Dh850,000
On sale: now