In this blog we will talk about an important initiative that is shaping the workforce landscape in the United Arab Emirates – Emiratisation. As your trusted accountant, I believe it’s crucial to keep you informed and engaged in the latest developments that can impact your business.
As you know, Emiratisation is a hot topic in the United Arab Emirates. The UAE government is taking important steps to prioritize Emirati citizens in the workforce, and let’s discuss why it’s so crucial.
First and foremost, Emiratisation aims to provide more job opportunities for Emirati people. By encouraging companies across various sectors to hire Emirati employees, the government is fostering economic growth and reducing unemployment rates among Emirati nationals. It’s like giving a strong push to empower Emiratis in their own country.
But it’s not just about numbers; it’s about creating a more diverse and inclusive workforce. Emiratisation brings a unique perspective to the table, reflecting the local culture, values, and traditions. It ensures that Emirati voices are heard, and their talents and skills are utilized in shaping the country’s future.
Moreover, Emiratisation helps to build a sustainable and self-reliant economy. By investing in its own human resources, the UAE is reducing dependence on expatriate labor and building a skilled local workforce. This strengthens national identity, promotes innovation, and enhances the country’s competitive edge on the global stage.
The UAE government recognizes that the private sector plays a vital role in driving economic growth. That’s why they are implementing measures to encourage private sector establishments to actively participate in Emiratisation efforts. By expanding the Emiratisation targets to include smaller companies, the government is ensuring that opportunities are available for Emirati job seekers across the board.
These measures are not just a random idea. The UAE government has carefully identified 14 key economic sectors to focus on that were announced on the 11th of July 2023, ranging from information and communications to education, healthcare, and hospitality. These sectors hold immense potential for growth and are crucial for shaping a thriving and diverse economy. Here is the full list:
- information and communications,
- finance and insurance,
- real estate,
- professional and technical activities,
- administrative and support services,
- arts and entertainment,
- mining and quarrying,
- transformative industries,
- education,
- healthcare and social work,
- construction,
- wholesale and retail,
- transportation and warehousing,
- hospitality and residency services.
Companies in these sectors have to hire at least one Emirati employee in 2024 and another one in 2025. If companies don’t meet these new regulations, they’ll have to pay fines. In January 2025, there’s a fine of AED 96,000 for those who couldn’t reach the 2024 target. And in January 2026, the fine goes up to AED 108,000 for those who missed the 2025 target. Ouch!
Emiratisation in the UAE is not an isolated effort; similar measures have been taken in various countries around the world to prioritize and empower their own citizens in the workforce. Many nations recognize the importance of creating opportunities for their local population while also promoting diversity and economic growth.
For instance, countries like Saudi Arabia have implemented the “Saudization” program, which aims to increase the employment of Saudi nationals in both the public and private sectors. The program includes incentives for companies to hire Saudi citizens, as well as penalties for non-compliance. This initiative aligns with the Saudi government’s goal of reducing unemployment rates and fostering economic development.
In Malaysia, the government introduced the “Malaysia Vision 2020” initiative, which focuses on promoting Bumiputera (indigenous Malays and other ethnic groups) economic empowerment. The program encourages companies to prioritize Bumiputera employees, providing training and financial assistance to support their integration into the workforce. This initiative aims to reduce income disparities and create a more equitable society.
In Singapore, the government has implemented the “SkillsFuture” initiative, which emphasizes lifelong learning and skills development among its citizens. The program provides various training opportunities, grants, and subsidies to support Singaporeans in upgrading their skills and staying competitive in the rapidly evolving job market. This approach ensures that Singaporeans have the necessary skills to secure quality employment and contribute to the country’s economic success.
These examples demonstrate that Emiratisation in the UAE is part of a broader global trend of countries implementing measures to prioritize their own citizens in the workforce. By doing so, these nations strive to reduce unemployment, promote economic growth, and build a more inclusive and self-reliant economy. Embracing the potential of their own people, while also valuing diversity, creates a strong foundation for sustainable development and empowers citizens to actively participate in shaping their country’s future.
Emiratisation is an exciting journey towards a more inclusive and prosperous UAE. It’s a strategy that values its people, embraces diversity, and builds a stronger future. By prioritizing Emirati citizens in the workforce, the UAE government is taking a bold step towards creating a nation where every citizen has the opportunity to thrive and contribute to its success. Together, let’s celebrate and support Emiratisation as we witness the UAE’s remarkable transformation into a dynamic and inclusive society.