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Emiratisation decree may hit UAE construction firms

Up to 30,000 HR positions will need to be filled by end of 2007, which could result in skills shortages.

Construction companies could struggle with skill shortage problems under the UAE government’s drive to replace expatriates in human resources and secretarial roles with UAE nationals.

Under the new ruling, private companies across the region, regardless of their size, have 18 months to substitute those currently in personnel positions with UAE nationals, while foreign secretaries can remain in their jobs until their work contract or permit expires.

The move means that up to 30,000 positions will need to be filled by the end of next year. KP Dutta, head of people development and HR, Al Naboodah Laing O’Rourke, warned: “Although it will open up more opportunities for nationals, and could lead to more people changing jobs, one of the issues will be finding enough people with the right skills for the job.

“The other issue is that, although we do have people with appropriate skills within the company, they might not wish to volunteer for the job.”

He added: “We will be following the law strictly, and this region will have to get used to the concept of redundancy. But at the same time, too many positions need to be filled by companies.”

The move is part of the UAE government’s emiratisation plan, which aims to strengthen the recruitment of UAE nationals in certain jobs rather than specific economic sectors, as well as address the high unemployment rate among them.

More than 21,536 jobs are expected to be created across the board, including 671 managerial positions.

Around 80% of the current working population in the UAE are expatriate.

If companies fail to fill recruitment quotas of UAE nationals, they could face having their business activities restricted.

The effect of emiritisation has so far been the most dramatic within the government and finance sectors, although some construction industry experts believe that the move could prompt more Public Private Partnerships (PPP).

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