UAE Private Sector Workforce Surges by One-Third in 2023 as Employers Embrace National Drive
UAE Private Sector Workforce Surges by One-Third in 2023 as Employers Embrace National Drive:
The number of Emiratis working in the private sector increased by over a third this year, with almost 68,000 individuals currently employed. Over 17,000 people joined private enterprises in 2023, per data from the Ministry of Human Resources and Emiratisation.
The UAE focuses on increasing local employment in the private sector as it plays a crucial role in economic growth. The ministry announced on Saturday that as of May 17, 67,988 Emiratis were working in the private sector, up from 50,228 as of the end of 2022.
The number of individuals working within the private sector increased by over 100% since the end of 2021. By the beginning of 2027, the UAE plans to have 10% of its private sector workforce made up of Emirati employees.
According to the strategy, companies with at least 50 employees must recruit one percent more Emiratis every six months. Failure to obey this law will lead to a fine of Dh42,000 ($11,440) for each vacant position. Starting on January 1, companies needed 2% of their staff to be Emiratis. By June 30, this figure must increase to 3%.
Embracing Emiratisation: Companies Prioritize National Workforce Development
According to Vijay Gandhi, who is the director of HR and recruitment firm Korn Ferry, the Emiratisation campaign is already proving to be beneficial. He stated that the Emiratisation drive delivered positive results in developing and attracting Emirati talent. He said that many companies took the initiative and found that they had access to many talented people. He shared that most organizations they reached out to also embraced the challenge and are enjoying the process. He further added that Emiratis were suitable to join the current workforce in certain industries such as banking, telecommunications, and financial services.
HR consultant Claire Donnelly stressed the importance of giving back to the country that has welcomed them. She expressed that expats in the region are valuable resources for learning from their experiences and using that knowledge to enhance the region’s overall development.
According to David Mackenzie, who is the group managing director of the recruitment agency Mackenzie Jones, businesses should not take shortcuts by simply accepting fines. Instead, they should put in the effort to develop strong Emiratisation policies. He stated that if companies don’t integrate Emiratis into the workplace, it would not only have financial consequences for companies, but they would also miss out on valuable skills and abilities.
The Ministry of Human Resources and Emiratisation declared an additional motivation for companies to comply with regulations earlier this month.
If a company tries to avoid meeting the Emiratisation quota by either reducing the number of employees or changing their job titles, they will receive a fine of Dh500,000 ($136,160).
Takeaways
The UAE private sector has experienced a significant surge in the Emirati workforce, with a growth rate of over one-third in 2023. This increase aligns with the country’s focus on boosting local employment, recognizing its vital role in economic growth.
Last Updated on 10 months by News Editor
