A Study on Emiratization and the influence of Expats in UAE, primarily Dubai.

1. EMIRATIZATION

2. INTRODUCTION
Emiratisation - It is a policy which “aims to reduce the country’s reliance on expatriate labor and increase the
participation of nationals in the labor market. It is a quota driven employment policy which ensures that UAE
nationals are given employment opportunities in the private sector.
Otherwise, Emiratisation was introduced to increase the presence of Emiratis in the job market mainly in
Financial Sector and Commercial companies.
Emiratisation started in 2000. By 2004, “the banking sector was directed to hire UAE nationals in all branch
manager positions before the end of 2004. Until 2006 Emiratization was restricted to Banking and Financial
sector.
One of the key policies in Emiratization is the quota system

3. IMPLEMENTATION MODEL FOR EMIRATIZATION

4. EMIRATIZATION FRAMEWORK

5. DEMOGRAPHICS
• Among GCC Countries UAE and Qatar ranks
lowest in terms of citizen as percentage of
total population with 20% and 25%
respectively.
• Oman (80%) followed by Saudi Arabia (77%)
ranks the highest in terms of citizen as
percentage of total population
• Entire GCC has over 30% Expat population
• Dubai in particular has the highest percentage
of Expats to the total population in the world
• Over 99% of the Dubai population is below 65
years of age
• Male to Female ratio in the Dubai is the highest
in the world
• Average growth of population in Dubai is about
7% which is the highest in the world

6. • More than 50% of the Dubai Workforce are from India
• Pakistanis are in the second place followed by people from South East Asian Countries like Indonesia,
Thailand etc.
• Only 10% of the Workforce accounts for Arabs while the UAE Nationals are just about 2%
DUBAI Vs EXPATS

7. • Ministry of Labour
• TANMIA - National Human Resource Development and Employment Authority
• The Abu Dhabi Emiratization Council
• Emirates National Development Programme (Dubai)
• Department for Human Resources Development (Sharjah)
EMIRATIZATION – FUNCTIONAL BODIES

8. Established by a decree issued by His Highness Sheikh Zayed bin Sultan Al Nahyan on 15th November, 1999
Objectives and Functions
• Create job opportunities for UAE National Workforce
• Reduce the unemployment ratio
• Enhance the Skills and productivity of the National workforce; and
• Recommend relevant policies to the UAE Federal Government
Vision
To become a pioneer and leading country in the development and empowerment of national human
resources (HR) towards a qualified and competitive workforce.
Mission
To support the Government’s endeavors by effective planning of HR policies and developing strategic
partnerships to achieve national development (HRD) objectives
Strategic Goals
• Developing the capabilities and competencies of national workforce and guide them professionally in
accordance with the requirements of the labor current and future market.
• Employing the national cadres who are seeking for work according to the labor market’s needs.
• Provide information, accurate data and innovative solutions in the field of promoting nationalization and the
development of relevant policies.
• Ensure all administrative services in accordance with the standards of quality, efficiency and transparency.
TANMIA

9. The Centre for Labor Market Research and Information
Conducts studies and research work related to the labor market in the UAE
Plays a fundamental role in providing information that support employment of UAE nationals, within the
broader role of TANMIA
Objectives
• Play a vital role in TANMIA's efforts to enhance the performance of national human resources in the labor
market
• Develop and maintain labor market information (LMI) that fulfill the objectives of TANMIA, other
government and private institutions and the society at large
• Lead and monitor Emiratization process by creating a database of target companies, as well as review the
performance of these companies and prepare periodic reports on their achievements
• Act as a think tank and information centre for the Government in all matters related to employment
policies, skills development and labor market performance
• Study global developments on employment and labor markets to make use of other experiences in
developing policies and procedures in the UAE
• Contribute effectively in the intellectual activity through issuing publications and organizing discussion
forums
CLMRI

10. Launched to enhance the participation of UAE citizens in the labor market under the guidance of the President of UAE
GOALS:
• Achieve social stability for UAE citizens and their families
• Support the government’s strategies and procedures for Emiratization
• Diversify the job opportunities for UAE citizens
STRATEGIC PILLARS OF THE INITIATIVE:
• Job Opportunities Creation for UAE citizens
Ministry of Presidential Affairs, to be implemented in collaboration with private companies in order to hire
new Emirati graduates in the private sector.
• Training and Development
To support and prepare graduates by increasing their levels of efficiency in line with labour market
requirements
• Counseling and Vocational Guidance for job Seekers and Discounts and Special Offers for Private Companies
To reduce the challenges of hiring new graduates by improving their skills and raising their efficiency along
with smoother transition from university life to working life.
Encourage private companies to play a greater role in community service programmes
• Encouraging the UAE citizens to work in the Private Sector
Accelerate the pace of Emiratisation and motivate Emiratis to join the private sector by offering
attractive incentives to those Emiratis working in this sector
ABSHER INITIATIVE

11. Government Jobs Private Jobs
The governments are major employers of
citizens throughout the GCC with over 50% of
the workforce are the Nationals
the UAE nationals represent no more than 2%
of the workforce
Better salaries and working conditions Low Salary and poor working conditions
Shorter working hours and more flexibility Extended work hours with little or no flexibility
Better non-monetary benefits Limited career development prospects
PUBLIC SECTOR VS PRIVATE SECTOR

12. The Private Companies prefer Expats for skilled and unskilled jobs over the Nationals.
Emiratis hold only about 1.5 per cent of the jobs in the private sector
Of about 3.8 million private-sector jobs, only about 20,000 were held by Emiratis, mostly in the financial sector
or in state-owned companies
The private sector provides the majority of jobs in the UAE, accounting for about 63 per cent of the total
workforce
Reasons for Private Companies preferring Expats over Emiratis
• Nationals are less productive while more expensive than the Expats
• Under-Skilled and Unmotivated
• Low fluency in English and Low Levels of Trust
• Expatriate wages in the private sector are about 60 per cent lower than those given nationals
• By 2009, over 90% of the Emirati workforce were employed by federal or local governments
PRIVATE COMPANIES VS EMIRATIZATION

13. UAE’s banking sector has been set an ambitious 50 percent Emiratization target by the year 2008
In 2007, companies with more than 100 employees were told that they “should employ only Emiratis in their
human resource department, and move towards implementing the same rule for secretarial roles
Under the New Labor Law, the Labor department will have the right and duty to check these quotas when
conducting inspections of workplaces
By 2007, the government “stepped up the enforcement of existing rules, cutting fees for companies that
complied and freezing all relation with the Labor Ministry with those that did not – a painful deterrent, since it
is illegal to bring new expatriate workers into the country without government approval
Emiratization and Levy Payroll Fees - putting tax on employing expats and providing discounts and financial gain
for employing Nationals
Labor Ministry introduced a new classification system for companies in December 2010 to regulate the job
market. They divided it into three categories.
o Opening up new professional jobs for Emiratis and avoiding ‘mock Emiratization
o Classification of Companies as A, B and C
 A if it does not commit itself to this policy by at least 25 per cent of the demand. 25-50% as B
and more than 50% as C
o The resolution ranks the firms according to their adherence to certain conditions – the professional
workforce (top three categories) should not be less than 20 per cent of the total manpower; and a
worker's monthly salary should not be less than Dh12,000 in level 1, Dh7,000 in level 2 and Dh5,000 in
level 3; and Emiratization rate should not be under 15 per cent in these levels.
EMIRATIZATION POLICIES

14. Only 12 per cent of employees in the UAE are Emirati nationals
By 2020, an additional 250,000 Emiratis are expected to join the 310,000 already in the workforce (270,000 with
jobs and 40,000 without), bringing the total number of Emiratis needing jobs to 560,000.
As on Oct, 2013 there were 40000 Emiratis who are jobless. The unemployment rate among UAE citizens was as
high as 13.8 per cent while that in expatriates it was only 2.6 per cent
According to 2011 Labor report, nearly 20000 of the 4 Million people in private businesses are Emiratis.
According to the 2009 UAE Economic Report released in March 2010, while 53 per cent of the population are
employed, 19.9 per cent have no desire to work in either the public or private sectors. The employment rate
among expatriate workers is 79 per cent and 45 per cent among UAE nationals. The report highlighted that the
majority of the unemployed are fresh graduates below 25 years. The economically active workforce is aged
between 25 and 54 years – 42 per cent of whom are women.
National women have boosted their share of the job market to a record 13.9 per cent as they push their way into
the labour market.
A World Bank report showed that Emiratis in the public sector make the highest monthly wages, averaging
Dh15,600 (US$4,247), while Emiratis in the private sector follow, averaging Dh10,450, and expatriate workers -
who range from laborers to executives - form the lowest tier, averaging Dh4,500.
UAE has one of the world's highest GDP per capita incomes, standing at around Dh150,000 in 2009, second-largest
in the Arab world after Saudi Arabia
According to a 2003 government study, 96.5% of students at Abu Dhabi Women’s Higher Colleges of Technology
said that they wanted to work after graduation, but only 11.5% favored the private sector.
FACTS & FIGURES

15. To increase the current number of UAE nationals working in the private sector by tenfold by the year2021
To provide approximately 20,000 jobs for citizens in the coming period
To encourage entrepreneurship among young UAE nationals to further strengthen their participation in leading
the national economy
Small and Medium size Enterprise development has been encouraged through improvements in the business
environment, the development of a federal law for small and medium-sized enterprises, and the increased
access to finance from sources such as Khalifa Fund and the Mohammed bin Rashid Establishment for Young
Business Leaders
KEY PERFORMANCE INDICATORS:
VISION 2020
KPI Definition 2012 Result Target 2020
Non-Oil Real GDP Growth Annual economic growth of all sectors except oil 2.72% 5%
Gross National Income (GNI)
per Capita
Average income per person in a country 13th Rank Among Top 10
countries
Global Competitiveness
Index
An indicator that assesses the competitiveness of
countries based on 12 different areas
19th Rank Among Top 10
countries
Share of UAE Nationals in
the workforce
UAE nationals employed out of the total workforce 4.3% 8%
Emiratisation Rate in the
Private Sector
An indicator that measures the share of UAE nationals
employed in the private sector
0.65% 5%
Share of "Knowledge
Workers" in the labor force
The share of highly skilled workers of the total
workforce
20.3% 40%

16. LEADERS COMMENTS
As important as secretarial jobs are, and all jobs are important, we need to have UAE nationals in more
important roles and responsibilities –
Sheikh Mohammad bin Rashid Al Makhtoum
The growth patterns that create jobs for a majority of unskilled workers have to change if strategies to tackle
unemployment and population imbalance are to succeed. University graduates employed in the private sector
accounted for only 10 per cent of the workforce. Workers with qualifications lower than secondary school
certificates make up 51 per cent of the workforce. For the next five years, nationalisation programmes may
provide enough jobs for citizens, but the real challenge will be creating attractive and productive jobs in the
private sector for the new entrants to the labor market in the long run
Our ethical and legal mandate requires us to strive to explore and roll out mechanisms that embody the sincere
commitment of the political leadership to put in place a safe and stable environment and to protect rights of all
categories in the community. The new classification system was designed after consultation with prominent
local labor market experts and embraced best practices from experiences of international community and
neighboring countries. While the old system revolved primarily on the cultural diversity mix in firms, the new
one allows the firm to move higher on the classification scale giving them a slew of rewards based on their
commitment to certain standards like Emiratization, wages and housing
Saqr Gobash Saeed Gobash
Labour Minister

17. Around 298,000 jobs will be created for UAE citizens in seven industries including media, real estate, financial
services, tourism, health care and energy.
As on December, 2013, some 65,000 jobs or 9.5 per cent of the total private sector jobs in the emirate can
immediately be filled by Emiratis because these jobs are high paying and skills required are matching those of the
citizens on the ADTC's database.
Dr. Abdullah Amer Al Bishr
Head of the Strategy, Planning and Policy
Abu Dhabi Tawteen Council
Closing the wage gap between the two sectors would remove what is considered a barrier to luring Emiratis away
from government jobs.
Humaid Bin Deemas
Director of Labor Affairs
Ministry of Labour
We now do more work with the local Emiratization department on introducing career counselling and guidance in
the school level. Many locals are dropping out of school and by not graduating from high school, they are unable
either to continue their higher education or to find a good job.
Mr. Essa Al Mulla
Executive Director
Emirates National Development Programme

18. SINGAPORE – TALENT
DEVELOPMENT
PROGRAM

19. The Continuing Education and Training (CET) Master plan is a comprehensive plan to prepare the Singapore
workforce for the future and maintain a competitive advantage for Singapore.
CET will enable our workers, including rank-and-file workers and professionals, managers, executives and
technicians (PMETs) to remain employable with new and better skills.
Objectives:
• The workforce of the future– nearly 50% of Singapore resident workforce will have at least a diploma
qualification by 2020, compared to 36% in 2007.
• To equip Singaporeans with the skills for job opportunities in new growth industries, whether they are
preparing for new jobs, switching careers or acquiring new skills.
The CET campuses will serve as:
A Gateway for all workers, from rank-and-file to PMETs to discover career opportunities, and
access relevant training that will help them stay employable and progress in their careers.
A Hub of high quality CET providers clustered under one roof, leveraging one another to link up
the wider network of providers around the island.
An Employment Exchange for employers to meet their manpower needs and for workers to seek
out good job opportunities
A One-Stop Centre integrating career coaching, training, assessment and career services.
The campuses are expected to provide about a combined total of 150,000 training places annually
The Government will partner leading education and training providers, from both the public and private
sectors, to set up quality CET centres for growth industries as well as expand existing CET centres to offer high
quality and industry-relevant training courses.
THE CONTINUING EDUCATION AND TRAINING

20. BENEFITS OF CET
EMPLOYEES EMPLOYERS
A constant resource throughout their working life:
o Find out the latest on jobs and training;
o Seek advise from career consultants
o Attend industry and career talks.
Recruit well-trained workers or send existing workers
to pick up new skills
Select from a full range of courses; from certificate to
diploma and even degree.
Work with training providers on other initiatives
such as traineeships and apprenticeships.
Increase their versatility and productivity:
o “Mix and match” modular courses to meet their exact
needs
o “Cross train” for related jobs.
For employers planning new investments or
expansion: Jointly develop customized
courses and train a pipeline of
skilled workers for their
business needs.
Access to training by relevant CET providers (including
tertiary institutions, such as Polytechnics and ITE) via
referrals and collaborations.
Deal with a single party at the campus, which can
package services to meet current and future needs.
Train in real workplace settings through tie-ups between
campuses and companies.
Join informal “learning circles” to hear and learn from the
best in their profession in Singapore and around the
world.
Showcase their skills and knowledge to potential
employers.

21. Established in September 2003, during the early 2000s economic crisis to help its workforce cope through
training and skills upgrading.
WDA was given a clear mission to lead, drive and champion workforce development, enhancing the
employability and competitiveness of Singapore's workforce
Objectives:
• To keep training relevant
• To strengthen the Continuing Education and Training (CET) infrastructure
• To help workers find jobs
WDA's current focus is to support sustainable and productivity-driven growth through CET. In the push for
inclusive growth, WDA continues to help low-wage workers who require assistance to adapt to a fast changing
economy. At the same, we will also look into expanding our offerings to help the PMEs.
Focus Areas:
• Supporting PMEs to be more adaptable and mobile
• Strengthening and deepening specialized skills
• Promoting enterprise productivity improvements
• Assisting low-wage workers
• Raising the quality of our CET system
• Development of a world-class CET infrastructure
THE SINGAPORE WORKFORCE DEVELOPMENT AGENCY (WDA)

22. PRISM
• Represents a group of productivity-related programmes
• Targeted primarily at managerial and supervisory-level staff
• e.g. 6 sigma, lean management, TQM etc.
CI FRESCO
• Enhanced course fee funding support extended to freelancers within the Creative Industries
• To boost skills upgrading and productivity among freelancers at lower cost
Max Talent
• A 2-year place-and-train programme by WDA and Association of Small and Medium Enterprises (ASME) to place
Singaporean Professionals, Managers and Executives (PMEs) into Small & Medium Enterprises (SMEs)
STEP
• Skills Training for Excellence Programme
• To help Professionals, Managers and Executives (PMEs) from entry-level managers to senior-level executives to
update their skills, knowledge and expertise so that they can remain competitive and employable
PRIME
• Productivity and Innovation Programme to help companies sustain innovation-led and productivity-driven
improvement and growth
• A joint effort by Singapore Business Federation (SBF), Human Capital Singapore (HCS), Singapore Workforce
Development Agency (WDA) and Employment and Employability Institute (e2i)
WDA – PROGRAMS & INITIATIVES

23. WSQ is a national credentialing system, developed and managed by the Singapore Workforce Development
Agency (WDA)
WSQ system trains, develops, assesses and recognises individuals for competencies that companies are
looking for
Based on national standards developed by the Workforce Development Authority (WDA) in collaboration
with various industries, WSQ comprises industry sectoral frameworks which serve to:
Professionalize the industry, where industry lacked recognised Continuing Education and Training (CET)
qualifications
Enhance labour market flexibility and skills portability in growing industry with high demand for skilled
workers and professionals
WSQ system is designed to be practical, accessible and affordable, enabling every individual to take charge of
their own career and advancement
A tool for employers to access and maintain a skilled workforce, thus enhancing their competitive edge and
advancing their businesses.
THE SINGAPORE WORKFORCE SKILLS
QUALIFICATIONS (WSQ)

24. CONCLUSION
The most important factors for successful Emiratisation are
• Encouraging Private Companies to recruit more Nationals
• Encouraging Nationals to join Private Companies through favourable work environment
• Developing a Skilled and Talented workforce by effective Training
• Encouraging women to work
• Encouraging Entrepreneurship among Nationals
• Setting up a favorable situation for Business Start Ups

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GLOSSARY

26. Rishad AR
Dubai