The UAE government is making consistent efforts to give Emiratis the place they deserve. Emiritisation is one of those efforts. It brings Emiratis closer to private sector jobs, training and development initiatives, and the needed skillsets.
We wrote up this guide to talk about each detail of Emiritisation. Explore the Emiratisation initiative in the UAE with us. Uncovering the opportunities it brings and the challenges it presents to both Emiratis and businesses.
What is UAE Emiratisation Meaning?
Emiratisation is a government-driven initiative. The program is designed to ensure that Emiratis have access to meaningful employment. The UAE government wants them to become a part of the private sector. Emiritisation mandates that businesses must hire a specific percentage of UAE nationals within their workforce. However, the exact requirements vary. It may depend on the company’s size and industry.
Organizations with 20 employees must hire at least one Emirati in 2024 and another by 2025. This rule applies across 14 key sectors such as:
- Construction
- Healthcare
- Education, and
- Real estate.
Goals of Emiratisation
The Emiratisation program was first introduced in the 1990s. It arose as a response to the large influx of expatriates who filled a majority of professional roles in the country. Blue-collar jobs were predominantly occupied by expatriates. While Emiratis were underrepresented in white-collar positions. These may include doctors, engineers, and bankers.
At this time, the UAE government recognized the need to involve the local population in these roles. So, that they can prevent cultural monopolies in various industries. The goals of Emiratisation are multifaceted:
Increasing Emirati Workforce Representation:
Ensuring that Emiratis are not excluded from the private sector.
Reducing Dependency on Expatriates:
Encouraging self-reliance by decreasing reliance on expatriates in key industries.
Building Emirati Skills:
Offering equal opportunities for Emiratis to develop the skills necessary to compete with expatriates.
Boosting Economic Contribution:
Ensuring Emiratis play a significant role in the nation’s economy, strengthening their presence in the workforce.
Enhancing Global Competence:
Equipping Emiratis to thrive in global career environments, making them as capable as any expatriate candidate.
Promoting Social Sustainability:
Emiratis contribute to the well-being of the country and future generations.
Why is Emiratisation Important for the UAE?
The UAE is growing into a global business hub. Due to this, many expatriates have set up businesses and filled numerous jobs. Many of these roles unfortunately have been taken up by foreigners rather than locals. Leading to an imbalance in the private sector. It has created a need to integrate Emiratis into the private sector. Equipping them with the skills and resources to succeed in the workplace.
The government recognized that without intervention. Emiratis could become marginalized from industries where they should be making their mark. Furthermore, empowering the Emirati population is crucial for sustaining economic growth. As a result, it reduces the country’s dependency on foreign labor.
Fake Emiratisation Meaning
According to the Ministry of Human Resources and Emiratisation, fake Emiratisation is defined as the employment of a UAE citizen solely for appearances’ sake. The employer issues a work permit and registers them with the company for hidden purposes. They have other purposes than those the permit is intended for.
Challenges in the UAE Workforce
Emiratisation has sparked a major shift in the private sector. At the same time, it has come with several challenges for businesses and Emirati workers alike.
Challenges for the Private Sector
Skills Gap:
Emiratis often lack the specialized skills required for many roles. This makes it difficult for companies to find suitable candidates.
Lack of Motivation:
Some businesses report lower motivation among Emiratis. Those who may feel secure in their jobs due to the government’s policies rather than a personal drive to succeed.
Inexperience:
Many Emiratis entering the workforce are relatively inexperienced compared to their expatriate counterparts. That’s why it requires time which results in costly training.
Language Barriers:
The primary language of business in the UAE is English. Fluency in English is needed to land a good job. It can be a challenge for some Emiratis. It greatly impacts communication and collaboration.
Challenges for Emiratis
Upskilling Needs:
Emiratis often face the challenge of competing with highly skilled expatriates who bring experience from global markets. This demands continuous learning and development.
Cultural Monopolies:
In some industries, expatriate communities dominate, which can create a challenging environment for Emiratis trying to integrate into the workplace.
Job Preferences:
Many Emiratis prefer working in the public sector. The benefits such as:
- Higher pay
- Pensions, and
- Job security is more attractive than those in the private sector.
The Issue of Hiring Emiratis in the Private Sector
The government makes significant efforts to push for Emiratisation. Still, private-sector companies face hurdles when hiring Emiratis. Public sector jobs are seen as more lucrative. This makes it harder to attract and retain Emiratis in private enterprises. Many Emiratis quit their private-sector roles due to dissatisfaction with the salary packages, which often fall short of what public-sector jobs offer.
Further, private sector companies face competition for Emirati talent. Companies regularly poach skilled individuals to meet their own Emiratisation quotas. As a result, this has led to a high turnover rate in many businesses. Ultimately, creating employee retention is a major issue.
Gender Diversity in Emiratisation
Gender diversity is another critical aspect of Emiratisation. Historically, the UAE has faced challenges regarding female participation in the workforce. They faced challenges in leadership roles. However, Emiratisation has made strides in improving gender equality in the workplace.
The government’s initiatives such as the Woman on Board program and the establishment of the Gender Balance Council has introduced. They have pushed for greater representation of women in professional and leadership positions. As a result, Emirati women now make up a substantial portion of the professional workforce. It surpasses the global average for female workforce participation.
Gender biases and cultural barriers still pose challenges for Emirati women despite these efforts. There is a need for more:
- Training
- Mentorship programs, and
- Organizational efforts to support women in balancing their personal and professional lives.
Economic Challenges of Emiratisation
There are economic implications to the Emiratisation program. This is particularly true for businesses in the private sector. Many organizations face struggles when trying to hire Emiratis for leadership roles. Because they often lack the experience required for these positions. Furthermore, hiring an Emirati employee in a senior role requires a higher salary than that of an expatriate employee. This way, it creates a financial burden for many companies. Specifically small and medium enterprises (SMEs).
Additionally, companies face significant costs in upskilling and training Emirati candidates. This is an essential investment in the workforce. As it can be a strain on resources when businesses are struggling to see a quick return on these investments.
Conclusion
In conclusion, Emiratisation has undoubtedly been a game-changer in the UAE. It drives significant shifts in the private sector. We can’t ignore that it comes with its set of challenges. These challenges can affect both companies and Emiratis. They should be overcome. The journey is far from complete while there have been strides in increasing Emirati participation in the workforce. However, the government’s commitment to Emiratisation reflects a strategic vision. They do so by creating a balanced and inclusive workforce that benefits Emiratis and expatriates.
The success of Emiratisation is essential for the UAE’s continued prosperity despite the hurdles. It ensures that Emiratis have the skills, opportunities, and recognition. That is a must to thrive in an increasingly competitive global economy.
