7000 dirhams fine for each citizen
Obliging the “violating” companies to a 4% localization rate during 2023
It is expected that 24,000 new job opportunities will be created for citizens in various sectors this year.
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The Ministry of Human Resources and Emiratisation stated that companies that did not achieve Emiratisation targets during 2022 are obligated to achieve Emiratisation of 4% of their skilled jobs during the current year.
The Board of Directors of the Emirati Cadres Competitiveness Council expects to create at least 24,000 new job opportunities for Emiratis in various sectors this year, based on results that exceeded expectations last year.
The Minister of Human Resources and Emiratisation, Dr. Abdul Rahman Al-Awar, affirmed that the results achieved in the Emiratisation sector during the past year are "unprecedented in terms of citizen participation in the labor market," pointing out that the expected number of jobs for citizens this year is more than 24,000.
He said: «The UAE market is vital and unique in terms of competitiveness and the legislative environment that attracts capital, labor and talents from all over the world, and the year 2022 is a vivid example of the distinction of the labor market in the UAE, as it witnessed great economic growth, an increase in the rates and pace of employment in general, and an increase in the number of workers in The labor market and the private sector, in addition to the remarkable growth in the number of skilled jobs (higher levels of job classification) ».
This came during a press conference organized by the Ministry of Human Resources and Emiratisation to review the most prominent results of Emiratisation during the past year, and its objectives during the current year.
In response to a question by Emirates Today, Al-Awar said: “The decisions that were issued to determine the target companies are based on studies and on expectations of supply and demand and future expectations for the growth of the labor market in the UAE. At least 24,000 job opportunities are expected this year. Hence, there is no change in the policy of achieving the set localization target of 2% in companies that employ 50 workers or more, and companies with a lower number will not be targeted.” He affirmed the Ministry’s commitment to the specified number and percentage, as this policy achieved great success in 2022, and then It will continue at this pace in the coming years.
He pointed out that the labor market currently has hundreds of thousands of companies registered with the Ministry working in the private sector in the country, while the 2% nationalization decision targeted companies that employ 50 workers or more, and therefore the number of targeted companies was 13 thousand companies, and this number is variable. Because of the dynamism of the labor market in the country, as some companies change the size of their employment, which confirms that the ministry’s system deals with the market situation digitally.
He stated that the past year witnessed the achievement of many achievements in the Emiratisation file, including the volume of citizen participation in the private sector, which increased by 70% over the previous year (2021), as the number of citizens in this sector increased to 50 thousand employees, and 7000 companies employed citizens for the first time. In its history during the past year, stressing that the saying “the private sector does not favor the citizen” has become unrealistic, due to the significant growth achieved in the number of citizens last year, calling on companies to benefit again from the incentives established for the current year (2023), and to abide by the decisions of the Council of Ministers Regarding this aspect, because they are practical decisions for the private sector in light of the economic growth witnessed by the country, indicating that the standards applied during the past year were successful, thanks to the support of the leadership.
He pointed out that the target localization rate is cumulative, as the targeted companies are obligated during the current year to localize 4% of their skilled jobs, so that companies that adhered to the decision last year add 2%, and companies that did not comply in the same year achieve a full 4% during This year, pointing out that the fine for non-compliance with achieving the targeted Emiratization rates will rise to 7,000 dirhams for each citizen, instead of 6,000 dirhams last year, until the fine reaches 10,000 per citizen by 2026.
And about the challenges that companies mentioned that they face in terms of localization, the Undersecretary of the Ministry of Emiratisation Affairs, Saif Al-Suwaidi, said: “The ministry has allocated several privileges for companies that achieve many times the goals of localization, including converting the company to the first category in the classification, including the privileges.” The targets have been achieved in all sectors, and the Ministry is working to address the challenges facing companies to achieve these targets.
For his part, Ghannam Al Mazrouei, Secretary-General of the UAE Competitiveness Council, said: “Since the launch of (NAFES), more than 28,700 citizens have joined the private sector, which contributes to recording an unprecedented increase in the number of Emiratis working in the private sector, amounting to 70%, with a total of more than 50 thousand citizens.
As for the number of beneficiaries of the financial support programs, it amounted to 32,566 citizens, according to Al Mazrouei, and the value of the total contributions due from companies that did not achieve the required localization rate for the year 2022 amounted to about 400 million dirhams, collected in January 2023, while 8,897 companies achieved the targeted localization growth rate for the year 2022. He drew Al Mazrouei pointed out that success in the health care sector was one of the most prominent achievements of the program, with the inclusion of 1,300 male and female students in the health sector cadre development program and 643 trainees through the competencies program, adding: “Over the past year, the successful construction of data on the Nafes platform continued, so that the program becomes An integrated window for the business environment in the country.The number of partners registered on the Nafes platform reached 7,017 companies, and 17,481 job vacancies were displayed on the platform, in addition to signing 24 agreements with strategic partners, including six agreements with participating universities within the health sector support program, and four agreements with strategic partners in the semi-governmental sector. To pledge to provide more than 11,000 jobs through outsourcing companies and suppliers.
And the Board of Directors of the Emirati Cadres Competitiveness Council announced at the conclusion of its first meeting for the year 2023 that the number of jobs that were filled in the private sector with the support of the “Nafes” program had achieved results that exceeded expectations during the year 2022, as the rate of increase in the number of Emirati employees working in the sector reached The private sector accounted for 70%, with a total of more than 50,000 citizens, and the number of those employed in the private sector since the launch of the Nafes program reached more than 28,700 citizens.
During its meeting, the Council reviewed the most important policies and decisions that have been issued since the launch of the "Nafes" program, which had a significant impact on reaching the latest results, the most important of which are: Cabinet decisions regarding determining percentages of Emiratization targets and imposing contributions on establishments that are not committed to achieving the targeted percentages.
He also reviewed the results of applying Emiratisation targets percentages in the private sector for the year 2022, which is represented by raising Emiratisation rates by 2% of the skilled jobs in establishments that have 50 employees, as 8897 companies achieved the required growth rates, while the value of the total administrative contributions applied to companies that It did not comply with achieving the required growth rates of about 400 million dirhams.
The Council also discussed the mechanisms applied by the Ministry of Human Resources and Emiratisation in detecting violations of Emiratisation policies and the results of the monitoring and compliance system regarding commitment to Emiratisation in the private sector for the year 2022. During the meeting, the most important studies and strategic plans prepared by the Council during 2022 were reviewed, the most important of which are presentation plans And the demand for the labor market 2022-2026 and the most attractive sectors in which to focus Emiratisation efforts.
The council stated that it had launched the "Nafis Youth" council, the details of which will be announced soon, which will include the conditions for joining it.
He added that more than 1,500 different workshops, meetings and interviews have been carried out with company owners to identify the challenges they face and work to solve them, adding that «it is good to interact clearly in the free zones with the settlement decision.
A number of its companies have begun to participate in achieving the targeted Emiratisation rates, and have registered in the Nafes program.
He pointed out that the budget allocated for support amounts to one billion and 250 million dirhams for training, developing, qualifying and employing citizens, and therefore companies will not find it difficult to train, qualify and support employment, and therefore they must attract skilled national workers to the private sector.
Careers
Citizens work in clerical jobs, jobs related to scientific, technical, and humanitarian subjects, and as specialists, in addition to jobs in legislators and managers, and in service and sales jobs.
Nationals also work in the sectors of financial intermediation, business services, manufacturing and construction industries, in addition to the trade sector and repair services.
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