Emirati private sector workforce rises by a third in 2023 as employers embrace UAE drive

Companies opting to pay fines rather than invest in UAE talent are being short-sighted, says leading recruiter

The Emirati private sector workforce has grown by more than a third in 2023. Pawan Singh / The National

Close to 68,000 Emiratis are now employed in the country's private sector – with the workforce increasing by more than a third so far this year.

Official figures released by the Ministry of Human Resources and Emiratisation show that more than 17,000 citizens have joined private companies in 2023.

The UAE has embarked on a major drive to bolster local employment in the private sector, which remains a key driver of economic development.

The ministry said on Saturday that 67,988 Emiratis were working in the private sector as of May 17, up from 50,228 at the end of 2022 – a rise of 35 per cent.

Since the end of 2021, the number of citizens in the private sector has more than doubled.

The UAE aims to ensure 10 per cent of private sector employees are Emirati by the start of 2027.

Businesses with at least 50 staff must increase the number of Emiratis they employ by one per cent every six months under the plan, or face fines of Dh42,000 ($11,440) for each unfilled position.

Companies were given a target of having Emiratis make up 2 per cent of their staff by January 1, and must increase this figure to 3 per cent by June 30.

Companies embrace Emiratisation

Vijay Gandhi, director with HR and recruitment firm Korn Ferry, said the Emiratisation campaign is already showing dividends.

“It is already working well in terms of developing and attracting Emirati talent,” said Mr Gandhi.

“A lot of companies are embracing it and finding there is actually an abundance of talent available to them.

“Most of the organisations we have spoken to have embraced the challenge and are enjoying it.”

Some sectors where Emiratis were most suited to joining the existing workforce include banking, telecoms and financial services, he added.

Another expert highlighted the importance of investing in local talent.

“We’ve got a duty to give back to the country that has welcomed us here,” said HR consultant Claire Donnelly.

“The whole point of having expats here is to learn from their experience and use that for the betterment of the region.”

'Don't be short-sighted'

David Mackenzie, group managing director of recruitment agency Mackenzie Jones, cautioned businesses against taking short cuts by accepting fines rather than making the effort to develop strong Emiratisation policies.

“Some are seeing it [the fine] as a business expense – like a tax – thinking they will just take the fine,” said Mr Mackenzie.

“But if companies keep getting fined it will be a lot cheaper in the long run to just bring the people in to develop and train them.

“The UAE government is very bright too and companies [breaking the rules] will keep getting fined until it becomes too expensive.”

A failure to integrate Emiratis into the workplace would not just hit firms in the pocket, it would also mean they lost out on talent, he said.

“We’ve just placed two Emirati candidates into HR roles and they are exceptionally good,” said Mr Mackenzie.

“If they were in a western company they would still be top division, so it’s not a case of the talent not being there.”

A further incentive for companies not to bend the rules was announced at the start of the month, by the Ministry of Human Resources and Emiratisation.

Attempting to reduce the number of employees or reassign job titles to evade fulfilling the Emiratisation quota will lead to a fine of Dh500,000 ($136,160).

Ola Haddad, director of human resources at jobs portal Bayt.com, said companies should create an environment for Emiratis to thrive. Photo: Bayt.com

Companies were also urged not to view hitting Emiratisation goals as merely fulfilling a quota, but instead as an opportunity to tap into local knowledge and expertise.

“Emiratisation is not just about meeting a quota. It's a strategic initiative toward sustainable development, integrating Emiratis into our workforce in a manner that utilises their unique skills and experiences,” said Ola Haddad, director of human resources at jobs portal Bayt.com.

“It's a win-win for both businesses and the national workforce.

“The success of Emiratisation rests not merely on meeting quotas but on fostering an environment that empowers Emirati professionals.”

Emiratisation drive - in pictures

Abdulla Galadari, an Emirati lawyer and senior partner at Galadari Advocates & Legal Consultants in Dubai. Ruel Pableo for The National

Abir Araki, Emiratisation and nationalisation manager at Cigna Insurance Middle East in Dubai. Pawan Singh / The National

UAE National Career Fair, World Trade Centre, Downtown, Dubai. Chris Whiteoak / The National

Young men at the Dubai Islamic Bank stand during the National Career Exhibition in Sharjah. Satish Kumar / The National

Emiratis at the Armed Services stand at a job fair at Adnec. Silvia Razgova / The National

Emirati job seekers and students at the RAK Career Fair in Ras Al Khaimah. Satish Kumar / The National

Young Emiratis at a jobs fair in Fujairah trying to get a foot on the career ladder. Satish Kumar / The National