By Gavin Gibbon

More of this topic

Posted inLatest News, UAE

Why expats are unlikely to lose out under the UAE’s new employment support programme

Leading recruitment experts reveal private sector outfits are already on a UAE national hiring drive

By Gavin Gibbon

Recruitment of UAE nationals in the private sector is already booming, according to leading industry experts.

While this week’s government announcement to support the employment of Emiratis in the private sector is expected to fuel that even further, this will not come at the expense of expat jobs, Muna Mohamed (pictured below), business manager – Emiratisation, Hays, told Arabian Business.

She said: “Already, we are seeing a growing number of private employers establishing learning and development programmes dedicated to Emirati hires and anticipate many more to follow suit.

“For expats, we expect job opportunities to remain much the same as today, if not increase. UAE nationals account for only a very small proportion of the country’s overall population and, thanks to the added foreign direct investment being attracted to the UAE, job opportunities will increase for nationals and expats alike.”

It was announced on Sunday that the UAE will spend AED24 billion ($6.5bn) on a package of benefits and subsidies designed to reduce citizen employment by making private sector-jobs more attractive.

In what was the second instalment of initiatives revealed as part of the country’s ‘Projects of the 50’ campaign, the measures are intended to help close the gap between the public and private sectors as the government aims to absorb 75,000 citizens into private-sector jobs over the next five years.

It comes following the creation of the Emirati Human Resources Development Council earlier this year and will see Emiratisation targets for the private sector, starting with 2 percent of Emiratis in skilled roles, rising in scale to a 10 percent Emirati contribution over the next five years.

Samantha Wright (pictured below), managing consultant – Emiratisation, Michael Page Middle East, told Arabian Business: “Emiratisation has exploded across the UAE job market. It really is the busiest I’ve been over the last 12 months.”

She added: “This will have a huge impact on the recruitment market. I have started to see an increase in private sector companies seeking consultative advice on UAE national hiring, salary levels and general information about the Emirati candidate market – I expect this only to increase following yesterday’s announcement.”

Sheikh Abdullah bin Zayed Al Nahyan, UAE Minister of Foreign Affairs and International Cooperation and chairman of the Education and Human Resources Council, said the latest initiative will lead to building a new generation of talented national competencies characterised by competitiveness, flexibility and diversity of professional experiences.

He said: “The private sector is a partner in the development process, and makes up a large share of the country’s economic output. Hence, enhancing citizens’ participation in the private sector means boosting their contribution to the economy, as well as their productivity and skills, and expanding their scientific and knowledge perceptions.

He added, “In the coming years, we can reach a more dynamic development model in which citizens play a key role in all economic sectors in the country.”

The new announcements include grants for students and fresh graduates to take up private sector roles, an AED1bn graduate business development fund, a government-backed new private sector child allowance and unemployment benefit, as well as career break and early retirement schemes for Federal government employees starting new businesses.

Justin McGuire (pictured below), co-founder of international recruitment firm DMCG Global, which operates mostly in the creative, digital and marketing sectors, revealed that their interactions with local employees was “plentiful”, when it comes to working with government clients, but “almost negligible” when working with the private sector.

He told Arabian Business: “There is a big piece of work to do in order to make the private sector more appealing outside of the traditional ‘safe careers’ of the banking, legal or healthcare sectors.

“The plans are very ambitious, and aside from cash incentives, there is a much larger piece to be done around making more industries, such as marketing, advertising and communications, more appealing to Emiratis.”

Wright, meanwhile, added that the programme would require a “two-way effort”, with buy-in needed from Emiratis and private sector companies.

Unemployment rose to 5 percent in 2020 from 2.2 percent a year earlier, according to the latest estimates from the World Bank, which didn’t break out citizen joblessness.

She said these measures would go a long way to addressing that, particularly among the younger generation. She said: “I have had a conversation recently with a top tier government authority and we discussed graduate unemployment within the market – I really do feel this will open a lot of doors for the youth of the UAE and help alleviate any initial concerns UAE nationals may have about joining private sector entities.”

As part of its Emiratisation programme, KPMG Lower Gulf collaborates with Abu Dhabi Global Market Academy (ADGMA), the Abu Dhabi Human Resources Authority and Abu Dhabi Accountability Authority to deliver the Pre-Audit Qualification Training (PAQT) program. In its first year (2019) of the initiative, PAQT provided more than 90 UAE nationals with essential knowledge and training in relation to audit to equip them for career success.

Fahad Kazim, partner, advisory and head of Emiratisation at KPMG Lower Gulf, said: “For organisations that are operating in the UAE, Emiratisation can be a more holistic initiative focusing on the transfer of capabilities and building national capacity to deliver growth in a dynamic business environment.

“Building an inclusive and diverse workforce creates a virtuous circle – where organisations are able to attract and retain talent.”

Scott Livermore (pictured below), ICAEW economic advisor and chief economist at Oxford Economics, told Arabian Business the latest policy package provided a “good mix” of incentivising Emiratis and offering a social safety net, without placing too much burden on the private sector.

“Over time it will be important that some of the measures are phased out and preferences for private sector employment by Emiratis become self-sustaining but the announced policies will support the transition and decisively help increase the role of Emiratis in the private sector,” he told Arabian Business.

“The government can afford to take its time and ensure the transition is smooth for Emiratis and the private sector. It is important for the government to reduce the dependency of Emiratis on public sector jobs over the longer term but the fiscal position in the UAE is strong and this affords it the ability to make the change gradually.”

The first instalment of the UAE’s ‘Projects of the 50’ campaign, aimed at establishing the UAE’s regional and international status as a major economic hub and a champion of excellence, with a competitive business environment that will attract investors, innovators, entrepreneurs and talents from across the world, included plans to deepen its trade ties in fast-growing economies in Asia and Africa, and draw $150 billion in foreign investment from mainly older partners to reposition itself as a global hub for business and finance.

The UAE also previously announced a new class of visas that will allow expatriates to apply for work without being sponsored by an employer. The government will allow people who’ve lost their jobs to remain in the country for up to 180 days – a major boost in a country where most workers are foreigners and visas are often tied to employment.

Follow us on

For all the latest business news from the UAE and Gulf countries, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube page, which is updated daily.