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Increasing Emiratisation and Introducing Unemployment Insurance To Power UAE’s Economic Development

His Excellency Dr. Abdulrahman Abdulmannan Al Awar, Minister of Human Resources and Emiratisation, has reaffirmed the announcement by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to raise the percentage of Emiratisation and the new Federal Law on unemployment insurance.

H.E. Dr. Al Awar reiterated that the new law and announcement is a landmark step in boosting the business environment in the UAE, and aimed at enabling national talents and competencies, strengthening partnership with the private sector, increasing the attractiveness of the UAE labour market and its ability to attract local and international talent by way of incentives and safety nets that support healthy and sustainable economic growth.

This was announced at a media briefing organised by the Ministry of Human Resources and Emiratisation today at the Ministry’s headquarters in Dubai, focusing on the new law on unemployment insurance, and the decision to raise current Emiratisation levels by 2% annually for skilled jobs in private sector establishments with 50 or more employees, and to achieve an increase in the overall rate of Emiratisation of 10% by 2026.

His Excellency Dr. Al Awar also indicated that the priorities of the government focus on economic development and empowerment of human capital to reach the goal of “building the best and most dynamic economy in the world”, which mandates integrated solutions aligned with the needs and aspirations of the individuals and society alike, besides enhancing and supporting local resources, ensuring the flexibility of the economy, and consolidating the UAE’s reputation as a hub for talent, companies and investments.

His Excellency Al Awar reaffirmed the wise leadership’s interest in strengthening the role of national talents and empowering them at all levels, to enable them to actively participate in the country’s labour market, which will contribute to strengthening the capabilities of the national economy and supporting the growth of private sector businesses, and their contribution to emerging economic sectors, promoting innovation and increasing levels of stability in the labour market.

Advantages for companies

His Excellency Dr. Al Awar said that the decision to raise the Emiratisation rate annually in the private sector companies offers unprecedented advantages, including reduction of the Ministry of Human Resources and Emiratisation fees by up to about 80% for private companies that make qualitative achievements in hiring and training Emiratis in collaboration with “Nafis”.

Accelerate the integration of national talents

The media briefing also highlighted the opportunities provided by the Cabinet’s decision to raise the current Emiratisation rate by 2% annually for skilled jobs in private sector establishments with 50 employees or more, as part of the amendments to some provisions of the Cabinet Resolution on the initiatives and programs to increase the competitiveness of Emirati human resources “Nafis”, which opens new horizons for national qualified and skilled talents in private sector companies.

His Excellency Dr. Al Awar stressed that increasing current Emiratisation rate by 2% annually until 2026 provides national talents, especially young people, with new options in the UAE labour market, within the local, regional and global companies that aim to grow and expand their business in the region, based on the UAE’s integrated and flexible business environment.

His Excellency indicated that the resolution will empower the private sector as well, while achieving the goals of Nafis program. He reiterated that the leadership has allocated around AED24 billion to employ 75,000 citizens in the private sector in the next five years. He explained that the incentives offered to private sector companies will accelerate training programs for Emirati citizens, and incorporate more Emiratis into the labour market with the required skillsets.

Protection umbrella

The media briefing also highlighted the Cabinet’s adoption of a federal law on the unemployment insurance scheme through insurance packages, which aims to ensure the availability of income for the workers during their unemployment until alternative job opportunities are made available.

His Excellency Dr. Al Awar stressed that the unemployment insurance scheme provides a social protection umbrella and ensures a decent life and security for workers, in addition to attracting and retaining the best international talents and skilled workers.

His Excellency said that the UAE aims to be a leader at all levels, and hence it proudly adopts this innovative scheme of unemployment insurance, which enhances the competitiveness of the UAE labour market and its attractiveness to global talents through solutions that include all private and public sector workers.

His Excellency stressed that the scheme’s unique guarantees, offered to all workers in the country, enhance the UAE business environment’s ability to attract and retain the best international talent and skilled workers by reducing business risks in a way that promotes the launch of projects and attracts talents who can contribute to building a competitive knowledge-based economy.

His Excellency Dr. Al Awar added: “We have ensured that the scheme is flexible to allow the workers to agree on additional benefits with the insurance service provider, to reduce risks in the labour market for individuals and increase flexibility for companies to deal with changes, thus enhancing competitiveness and supporting stable living standards for families even during unemployment.”

A pivotal role

His Excellency indicated that the Ministry of Human Resources and Emiratisation will play a pivotal role in this scheme, based on its mission to protect labour rights and improve the business environment. He said that the ministry will develop a mechanism for creating and operating the scheme, its application and subscription fees, and any necessary requirements or procedures to ensure its success and governance. The ministry will also monitor the work of insurance service providers to ensure the best results are achieved for both workers and companies.

Dr. Al Awar concluded by emphasizing that the new resolutions, whether the unemployment insurance scheme, or increasing Emiratisation rates, support the strategic economic security of the UAE in the medium and long term. They enhance the UAE’s ability to attract talents and skills from around the world, supporting the emerging economic sectors that contribute to diversifying sources of income. He added they empower national competencies and establish a flexible business environment that keeps pace with global changes in the areas of production and work leading to a sustainable and diversified economy.

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