UAE business leaders making an investment in local talent are helping to change the face of an evolving private sector landscape as the government's Emiratisation strategy takes shape.
Companies told The National of the importance of integrating citizens into their workplace culture and said it was crucial to think outside of the box when launching recruitment drives.
Private sector firms with 50 or more employees must ensure 7 per cent of skilled roles are filled by Emiratis by June 30, with substantial fines levied from the following month for those caught flouting the rules.
The latest six-monthly target is part of the country's mission to have 10 per cent of private sector jobs taken up by Emiratis by the end of 2026.
More than 141,000 Emiratis were employed in private companies by the end of May, the Ministry of Human Resources and Emiratisation said.
While businesses are eager to avoid financial penalties, they have been urged to adopt a big picture view of the benefits of unlocking the potential of thousands of new recruits.
Learning curve
Ben Crompton, managing partner of Crompton Partners estate agents in Abu Dhabi, said that starting early is essential as “it's a learning curve for everyone involved”.
“First, we needed to know where to advertise to attract Emirati talent. Then, we needed to explain the nature of real estate pay structures [commission-based pay] in comparison to typical salaried jobs.
“We also wanted to ensure our Emirati team members were comfortably settled into a multicultural team, where English is the primary language. And finally, we needed to overcome assumptions about some Emiratis only preferring government jobs. This last challenge is merely an assumption,” said Mr Crompton.
Mr Crompton said that the company has benefitted greatly from adding Emiratis to the workforce.
“Some of our clients who are local investors benefit from our Emirati team members’ ability to connect with them both linguistically and culturally, and we now have even more success stories with Emirati team members working on highly successful projects that involve selling Emirati-specific properties.”
Broadening scope
Bader Alawadhi, executive director of Leader Group, which has an extensive portfolio of interests spanning from retail and real estate and shopping malls, said encouraging Emiratis to switch from the public sector remained a challenge.
“There is a limited pool of Emirati talent actively seeking roles in the private sector, especially outside government entities,” he said.
“Many qualified nationals are already in public sector roles that offer more attractive salaries and shorter working hours,” said Mr Alawadhi.
Mr Alawadhi advised companies to broaden their scope when searching for Emirati hires and not to solely rely on recruitment portals established by the government.
“There are other talent providers and consultancies that can help access Emirati CVs. Unfortunately, many HR teams focus only on the usual platforms, which narrows the search. The Ministry of Human Resources and Emiratisation might also consider accrediting more sourcing partners to broaden the pool and help companies meet targets more efficiently.”
Mr Alawadhi said that they've avoided fines on a compliance level “but the real win has been seeing committed young Emiratis thrive within our teams”.
Carving a niche
Mohammed Al Gaith, a senior level worker in real estate, said that finding jobs in the private sector at the senior level proved much harder than junior level jobs.
“When I graduated around 2017, I secured a civil engineering role even before finishing university. At that time, the entry-level landscape was more open. But as you rise through the ranks, the dynamics change − networking, demographics and relationships begin to matter more than merit alone.
“I’m at the senior manager level. But even with that experience, I still face structural barriers. Emiratisation strategies in many organisations focus on entry-level or admin roles to tick the KPI [key performance indicator] box. There’s far less emphasis on integrating Emiratis into strategic, decision-making positions.
“This misses a huge opportunity. Emirati professionals at the senior level can offer not just technical skill but cultural intelligence, stakeholder access and a long-term commitment to the national vision.”
Mr Al Gaith advised young jobseekers to find a niche and build their career around it. He used the example that where “there might be hundreds of civil engineers competing for the same role, there are far fewer project controls specialists or planners with deep expertise”.
He added that carving a niche sets you apart and increases your value in a highly competitive market.
Wealth of talent
“The work experience and knowledge gained in the private sector are extensive, given its dynamic and fast-paced environment,” said Maryam AlNuaimi, Emiratisation and early careers specialist at Marsh McLennan, a professional services company with a focus on risk and strategy.
“If companies take advantage of this initiative by implementing long-term strategies for Emirati employees, the benefits will be significant for everyone involved − the Emiratis, the companies, and the nation as a whole.
“I strongly encourage all companies to adopt this initiative, as there is a wealth of talented Emiratis with great potential,”
“Meeting deadlines is manageable if the company has a strategic recruitment plan in place for hiring Emiratis and has made an effort to maintain a solid pool of candidates to replace on time those who resign,” she added.
Killing of Qassem Suleimani
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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.”
SNAPSHOT
While Huawei did launch the first smartphone with a 50MP image sensor in its P40 series in 2020, Oppo in 2014 introduced the Find 7, which was capable of taking 50MP images: this was done using a combination of a 13MP sensor and software that resulted in shots seemingly taken from a 50MP camera.
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed