At TASC, we are committed to finding the best talent for all your recruitment needs. As the Middle East’s leading HR solutions and staffing specialists, our team is super skilled and will deliver the right solutions for all your business needs.
No matter the size and scale of your business, we provide bespoke solutions that help achieve your goals more quickly. Our suite of services includes contract staffing, permanent recruitment, HR consultancy services, PRO services, payroll services, and more.
What else can TASC help you with? Emiratisation is one of our newer capabilities. Let us delve into the concept of Emiratisation, its importance, and how TASC can help with it. Our handy guide will cover it all.
One of the most important initiatives undertaken by the UAE government, Emiratisation, refers to the process of incorporating UAE nationals into the private sector by providing them with employment opportunities.
The new Emiratisation policies are scheduled to be in effect from 1st January 2023. Those companies who fail to follow the Emiratisation requirements will be subject to penalties. The Emiratisation policy in the United Arab Emirates is comparable to the Saudisation policy in Saudi Arabia.
Emiratisation has been in force in the UAE for a while now. In the banking and insurance sector, the Emiratisation quota was 4% and 5% respectively.
However, in 2017, a landmark judgment came into being. A form of labour market testing was introduced for employers having more than 50 employees. Under the new laws, organisations are required to have 2% Emirati representation if their workforce is above the 50 counts. Essentially, there should be 1 Emirati for every 50 employees.
The Tawteen and Nafis schemes were also introduced during this time to further the Emiratisation process. We will delve into these schemes in detail.
The new Emiratisation requirements apply to all employers falling under the jurisdiction of the Ministry of Human Resources and Emiratisation (MOHRE). MOHRE issued a new Ministerial Decision with regard to Emiratisation efforts in the United Arab Emirates.
Under this, all organisations in the private sector have to not only comply with the 2% Emirati quota but also have to increase this number year by year so as to reach the 10% mark by 2026. However, for the banking and insurance sectors, the quotas would remain at 4% and 5% respectively.Read More
These requirements apply to all employers under MOHRE who are based onshore in mainland UAE. They do not apply to organisations in the free zones. These requirements would fully come into effect from 1st January 2023.
Another aspect of this is the number of skilled workers in the company. The actual Emiratisation numbers per company would be determined depending on the number of skilled workers in the company.
An employee is classified as a skilled worker if he/she meets the following pre-requisites
Do note that as per new regulations, those who belong to level 4 are required to provide certification.
Firstly, employers need to ensure that they comply with all labour regulations.
Secondly, they need to provide each United Arab Emirates national with a work permit and employment contract.
Thirdly, they need to be registered with the applicable pension authority and lastly, they need to be paid through the Wage Protection System(WPS).
According to the new Emiratisation guidelines, there are also fines imposed for non-compliance with the quotas. For every employer who is not complying with the Emiratisation process, they will be fined AED 6000 per month per employee falling short of the quota. This amount will be increased by AED 1000 per month per year. Apart from the fines and penalties, the Ministry of Human Resources and Emiratisation has also announced amended conditions for Platinum membership in the Tawteen Partners Club.
To be eligible for Platinum membership, employees need to increase their Emiratisation quota by at least three times of the prescribed annual ratio. Otherwise, they need to participate in the Nafis program and train at least 500 Emiratis per year.
As has been discussed already, Emiratisation is a critical step towards development in the UAE. Every organisation, no matter how big or small must take conscious steps to achieve Emiratisation depending on which requirements apply to them.
TASC can help achieve this by providing the right support to your organisation. Our highly-skilled team is trained to find the best Emirati talent for your business and help you scale new heights. You can rest assured that we will make sure that you are compliant with all the laws and regulations.
The UAE government has been firm on the execution of this program and those organisations that are non-complying with their Emiratisation requirements are fined and penalized.
These consequences can be easily avoided by ensuring that Emiratisation happens on all levels of your organisation by attracting and retaining the right Emirati talent. Another critical aspect is that Emiratisation may actually be economically beneficial to your organisation by helping save on airline tickets, residency costs, and health insurance as Emiratis would already be having these covered.
Apart from taking responsibility for streamlining recruitment processes in the United Arab Emirates, the MOHRE has also set up a Training and Skill Development Division which objects to training and preparing local nationals for the vastly competitive...
Apart from taking responsibility for streamlining recruitment processes in the United Arab Emirates, the MOHRE has also set up a Training and Skill Development Division which objects to training and preparing local nationals for the vastly competitive job market landscape. Once a candidate completes his/her training process, their chances of getting hired in the private sector increase by leaps and bounds.
There are several different training programs that have been established by the Tawteen in the UAE and candidates can undergo multiple training programs at the same time. Once candidates have successfully completed a particular training program, they also will receive a certificate of completion.
These training programs have played a crucial role in getting UAE nationals’ workforce ready for the professional world. It provides valuable upskilling opportunities which lead to personal and then subsequently, economic growth.
In keeping up with the goal of getting the Emirati workforce ready for different professional challenges, Tawteen UAE has also launched another unique initiative that helps with this endeavour. The Tawteen 360 Student Forum was incorporated to help...
In keeping up with the goal of getting the Emirati workforce ready for different professional challenges, Tawteen UAE has also launched another unique initiative that helps with this endeavour. The Tawteen 360 Student Forum was incorporated to help with the guidance and career counseling of school and university students.
Who are the people who can avail of these services? The Tawteen 360 Student Forum was designed for school students, university students, parents of students as well as potential job seekers.
Tawteen has played and continues to play an important part not only in the work landscape in the United Arab Emirates but also in the Emiratisation process.
The platform has helped boost the careers of many individuals and has helped connect a lot of employers to the right kind of talent for their organisation.
It is an integral part of the human resources process and it is one of the most critical steps taken by the Ministry of Human Resources and Emiratisation to ensure that Emiratis are well-trained with the skillsets required to perform at their jobs and have the tools to find the right opportunities for themselves. Not just that, it provides access to a wide range of professionals who are ready to provide counselling if they require it.
The word ‘Nafis’ means to compete in Arabic. Launched on 13th September 2021, this program is a part of the United Arab Emirates ‘Projects of the 50’.
The aim of this program is to equip Emirati nationals with the tools and resources they need to have successful professional lives in the private sector. The backdrop for the NAFIS program is an ambitious target. The aim is to create 75,000 jobs in the private sector by 2026.
The program aims to support Emiratis in different stages of their career, whether it is a fresher who needs to kickstart his/her career or someone who has been in the workforce for a while and is looking for some growth. It is now mandatory for all organisations under the Ministry of Human Resources and Emiratisation to also be registered with NAFIS.
There are a number of benefits that can be enjoyed by UAE nationals who are registered under NAFIS. The first is reduced pension contributions for UAE nationals and salary contributions of up to AED 8000 per month for each United Arab Emirates national hired under this scheme. Apart from this NAFIS also has a recruitment portal which aims to help Emiratisation by connecting talented job applicants to their potential employers.
Another important aspect of NAFIS is the Emirati Talent Competitiveness Council. There are two main objectives of this Council. The first is to engage with various federal representatives and implement learnings from there. Secondly, it is to incorporate those working in the public sector into the private sector and move them to take early retirement from the public sector.
Apart from this, those United Arab Emirates nationals employed in federal services can apply for sabbaticals at 50% of their salary for a period ranging from six to twelve months. They can then use this time to start their own business in the private sector. With a range of options available for employees and employers, everyone can avail of the benefits of NAFIS. However, one must not forget that all these benefits are to be availed with the goal of achieving 10% Emiratisation in mind.
The Ministry of Human Resources and Emiratisation has categorised organisations into 3 tiers for Emiratisation.
These categories are as follows:
Organisations need to achieve at least one of the following objectives
For category 1, the Ministry of Human Resources and Emiratisation will set work permit fees at a maximum of AED 250 for 2 years.
Those organisations which don’t fall into the Category 1 subdivision but nonetheless meet the Emiratisation quota of 2% per year
For category 2, the Ministry of Human Resources and Emiratisation will set work permit fees at a maximum of AED 1200 for 2 years.
Those organisations that do not meet the Emiratisation quota
For category 3, the Ministry of Human Resources and Emiratisation will set a fine of AED 6000 per month per UAE national not hired. This fee will be increased on an annual basis by AED 1000 per month.
Do note that for Categories 1 and 2, UAE and GCC nationals will be exempted from the fees.
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