A request to maintain the number of citizens as at the end of December 2021 and to submit a plan until 2026

The Central Bank obliges banks and insurance companies to appoint citizens who are “graduates” or “from outside the sector.”

The Central Bank has made important amendments to the application of the Emiratisation points system.

archival

The Central Bank asked banks and insurance companies to commit to appointing new citizens, whether graduates or from outside the banking sector, while maintaining the number of previously appointed citizens, as on December 31, 2021.

In detail, the Central Bank clarified, in a circular that important amendments were made to the mechanism for applying the points system, and "Emirates Today" obtained a copy of it, that the Emirati citizen will also be considered "new" in the bank or insurance company, if he is a new graduate or not. He previously worked in the banking or insurance sector during the past 12 months, indicating that three points will be calculated for each newly appointed Emirati citizen.

The Central Bank sent, to each bank and insurance company, circulars detailing the number of citizens required to be employed, within the Emiratisation points system, indicating that “the insurance company or bank is expected to retain the same number of UAE nationals working for the bank or insurance company, As on December 31, 2021, in addition to achieving the assigned operational target points,” noting that “output points will not be counted in the points achieved under (employment goal), to avoid recalculation.”

He stated that “the points will be calculated on a cumulative basis, and they will be achieved by employing an Emirati citizen (a new graduate or coming to the company or the bank from another sector) for a new targeted and vital job,” noting that “the cumulative basis is intended to add the goal of the first year, to the second year.” And so on".

He added, "In the event of a shortage, i.e. a decrease in the number of citizens, as on December 31, 2021, it will be considered a decrease of one point for each Emirati citizen."

The Central Bank added, in its circular, that “each bank or insurance company must submit a plan on an annual basis, to achieve the cumulative target employment points, by employing Emiratis in important targeted jobs,” according to an illustrative form that the “Central” attached with the circular.

And he indicated that "there is no change in the central bank's treatment of the shortfall in the target points."

It is noteworthy that the decision to resettle points, issued by the Council of Ministers in 2015, approved the Emiratisation strategy in the banking and insurance companies sector, and the points system, which replaced the percentage system, and the Central Bank began to actually implement it in 2017, as a first stage without applying fines, and it was implemented Fully in 2018. The localization strategy has also become highly dependent on the operating profits of banks and insurance companies, meaning the higher their profits, the higher the number of target points.

The decision includes “fine points” legally prescribed for banks and insurance companies that are not committed to the Emiratisation rates, up to 20 thousand dirhams for each point missing from the target number.

According to the latest data, Emiratisation rates in the banking sector range between 27 and 30%, and it is one of the best sectors in the country that permanently employs citizens.

Follow our latest local and sports news and the latest political and economic developments via Google news