Emiratization 2.0: Beyond Quotas – Building an Attractive Private Sector for Emirati Talent, ETHRWorldME

Emiratization, a UAE government initiative to increase private sector employment for Emiratis, has been a significant policy objective for several years. While initial efforts focused largely on setting quotas to ensure a certain percentage of Emiratis in the private sector, it is clear that a more nuanced approach is needed. Emiratization 2.0 aims to go beyond quotas and create an environment in which the private sector is truly attractive to Emirati talent. This article examines the challenges and proposes strategies to achieve this goal.

Research by the UAE National Bureau of Statistics indicates that Emiratization in the private sector is gradually increasing. However, there is still a significant gap compared to public sector employment. According to a study by the UAE Ministry of Human Resources and Emiratization, currently only 8% of Emiratis work in the private sector, underlining the need for further efforts to make these jobs more attractive.

A study by the Emirates Foundation found that 65% of young Emiratis are interested in private sector employment but are put off by perceived barriers such as job security and career progression, underlining the importance of addressing these issues through targeted initiatives and policies.

Challenges in Attracting Talent from the Emirates

1. Cultural and social expectations: Emiratis often prefer public sector jobs due to cultural and social expectations. Public sector jobs are seen as offering greater job security, higher salaries, and more prestigious roles compared to the private sector.
2. Working environment and conditions: The private sector is often perceived as having less favourable working conditions, including longer hours and less job security. This perception can deter Emiratis from considering private sector employment.
3. Skill Mismatch: There is often a gap between the skills of Emirati graduates and the skills required by the private sector. This mismatch can lead to employers being reluctant to hire Emiratis and Emiratis being reluctant to apply for jobs in the private sector.
4. Retention problems: Even when Emiratis join the private sector, retention can be a challenge. Factors such as lack of career development opportunities, insufficient training and development, and cultural mismatch can lead to high employee turnover.

Latest Events: Deadlines and Penalties

The UAE government recently strengthened its commitment to Emiratisation by introducing stricter regulations and deadlines. Under the latest directive, private companies that fail to meet their Emiratisation targets by the end of the year will face significant penalties. These penalties are intended to ensure that private sector employers take their responsibilities seriously and make genuine efforts to integrate Emirati talent into their workforce. The move has been met with mixed reactions. While some see it as a necessary step to ensure compliance and accelerate progress, others argue that imposing penalties alone will not address the underlying issues that deter Emiratis from joining the private sector. It is therefore crucial to complement these regulations with strategies that make the private sector truly attractive to Emiratis.

Strategies for Building an Attractive Private Sector

1. Improving the working environment and conditions: The private sector needs to improve its work environment to attract talented Emiratis. Companies should offer competitive salaries, flexible working hours and clear career paths. For example, Mubadala Investment Company in the UAE has implemented flexible working conditions and strong career development programs to retain talented Emiratis.
2. Targeted training and development: Addressing the skills mismatch is key. Private companies should invest in training and development programmes tailored to the needs of Emirati workers. Collaborations between private companies and educational institutions can help match the skills taught to industry needs. For example, the Emirates Group has partnered with various universities to provide tailored training programmes that equip Emiratis with industry-specific skills.
3. Promoting a positive company culture: Creating an inclusive and supportive company culture is essential. This includes respecting cultural values ​​and providing mentoring programmes that connect Emiratis with experienced professionals. Multinational corporations such as HSBC have successfully implemented mentoring programmes that support the integration of Emiratis into their workforce.
4. Government incentives and support: The government can play a key role by providing incentives to companies that actively hire and develop Emirati talent. These could be tax breaks, grants or recognition programs. For example, the UAE Ministry of Human Resources and Emiratization offers financial incentives to private companies that exceed their Emiratization targets.
5. Introducing a Success Story: Showcasing the successes of Emiratis in the private sector can help change perceptions and inspire others. Case studies and media campaigns featuring Emirati professionals who have found success in private sector roles can serve as powerful motivators. The Qudwa initiative, which highlights Emirati success stories, is a great example of how positive role models can influence career choices.
6. Creating industry initiatives: Different industries face unique challenges in attracting Emirati talent. Initiatives tailored to specific industry needs can be more effective. For example, the UAE banking sector has launched targeted Emiratisation programmes that focus on developing financial and management skills among Emiratis.

Success stories

1. Mubadala investment firm: Mubadala has been at the forefront of Emiratization efforts, implementing comprehensive talent development programs. These programs include internships, graduate development programs and leadership training, all designed to equip Emiratis with the skills and experience needed to thrive in the private sector.
2. Emirates Group: The Emirates Group has partnered with educational institutions to create specialist training programmes. These programmes ensure that Emiratis entering the workforce are well prepared for the demands of the aviation and tourism industries.
3. HSBC Middle East: HSBC’s mentoring programme pairs Emirati employees with experienced mentors who provide guidance and support. The initiative has helped integrate Emirati talent into the company’s workforce and improved retention rates.
4. Qudwa Initiative: The Qudwa initiative showcases the achievements of Emiratis in various sectors, providing inspiration and changing the perception of private sector employment. By highlighting success stories, Qudwa aims to motivate more Emiratis to pursue careers in the private sector.

Application

Emiratisation 2.0 requires a concerted effort from both government and the private sector to go beyond quotas and create a truly attractive environment for Emirati talent. By improving working conditions, providing targeted training, promoting a positive company culture, offering government incentives and highlighting success stories, the private sector can become a more attractive career choice for Emiratis. As these strategies are implemented, the UAE will be better positioned to harness the full potential of its domestic workforce, driving sustainable economic growth and development. The recent introduction of fines for companies that fail to meet Emiratisation targets underscores the urgency of this issue. However, to achieve lasting success, these punitive measures must be complemented by proactive and supportive initiatives that truly attract and retain Emirati talent in the private sector.