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Sunday, May 18, 2025

Significant Growth in Emirati Employment in the Private Sector Amidst Challenges

A recent study reveals a marked increase in Emirati employment within private companies, highlighting ongoing initiatives and challenges in the job market.
A survey conducted by the Ministry of Human Resources and Emiratisation in collaboration with the workforce solutions provider Task, which included over 2,000 job seekers and employees as well as 400 hiring companies, has disclosed that the number of Emirati employees in the private sector reached 131,844 by the end of last year.

This represents a 192.5% increase in the number of companies that hired Emiratis by the end of 2024, indicating the success of targeted localization initiatives due to close collaboration between the public and private sectors.

The study, announced during the localization summit at the Museum of the Future, indicates that traditional in-person jobs remain dominant, with over half (53%) of Emiratis working in fully on-site environments, highlighting limited access to hybrid or remote work options.

This lack of flexibility poses challenges for retaining talent, especially among women and young parents.

Moreover, issues such as salary disparities, cultural variations, and the allure of the public sector contribute to high turnover rates, faced by 52.39% of companies surveyed.

In response to this trend, 63.40% of employers are focusing on permanent contracts to support long-term localization goals.

Despite a job satisfaction rate of approximately 57% among Emiratis, 74% expressed dissatisfaction with their salaries, underlining compensation as a primary concern for improving workplace conditions.

Faris Al Ali, Assistant Undersecretary for National Talent Empowerment, noted the UAE government’s commitment to advancing localization through structured initiatives like Nafoos and comprehensive policies that mandate periodic hiring targets, ensuring employers adhere to these strategies through strict enforcement.

Mahesh Shahdabouri, founder and CEO of Task, stated that their data-driven guide offers essential strategies that include enhancing workplace flexibility, designing tailored compensation packages, and developing targeted skills, particularly in artificial intelligence and emerging technologies.

During the summit, Task, alongside the ministry, launched the third edition of its guide titled "Towards Successful Localization - 2025," which outlines progress made in enhancing job opportunities for Emiratis and building a more inclusive and flexible labor market.

The guide is based on responses from 2,000 job seekers and citizen employees, as well as 450 private sector employers, providing valuable insights to support these objectives.

There is a noticeable shift among Emirati job seekers towards technology-centric roles, with interest in the information and communication technology sector growing from 4.12% last year to 15.84% this year.

Interest in the public and social sectors remains at 33.95%.

Employer data shows that operational sectors account for 46.17%, followed by human resources and management at 45.69%, and sales and marketing at 44.06% of employment areas.

Approximately 23.98% of Emirati job seekers reported a significant shift towards digital and technological roles, making the information technology sector their top employment choice.

While 52.26% possess a basic understanding of artificial intelligence, there remains substantial opportunity for advanced skill development, particularly in fields like machine learning.

Ongoing efforts to enhance the workforce's capabilities through skill development initiatives in artificial intelligence, supported by the Ministry of Human Resources and Emiratisation and the Nafoos program, continue.

Additionally, enhancing employer engagement and optimizing the use of the "Falk Tayeb" job search application could improve recruitment effectiveness and align organizational cultures.

Moreover, keeping pace with localization-related systems and exploring support incentives, such as wage support plans for new graduates, is crucial for ensuring compliance and integration among various national talent sectors.

In a session titled "Expanding Retention and Engagement Strategies," Amal Al Tuniji, Director of Strategic Planning and Excellence at Nafoos, stated that the UAE National Talent Competitiveness Council provides support programs for private sector companies to aid localization.

This includes diverse consulting services in training and development.

She emphasized the aim of providing training programs that enhance the skills of the Emirati workforce.

Al Tuniji also mentioned financial support available to citizens through the Nafoos program to encourage employment in the private sector.

Additionally, Nasser Al Bloushi, General Manager at Chalhoub Group, highlighted their ongoing commitment to support and enhance various skills for Emirati employees to ensure they can assume leadership positions.

He expressed a continuous desire to develop young Emiratis through training programs and leadership initiatives, also emphasizing training employees in the use of artificial intelligence.

Chalhoub Group employs over 120 nationalities, with localization being a core part of their strategy.

Department heads are mandated to develop Emirati talent within their teams.

The group provides flexibility to Emirati mothers through a paid maternity leave of 90 days and allows remote work options for expectant mothers.

The current landscape of the job market for Emiratis displays a balance of encouraging indicators alongside significant challenges, as nearly half (49.13%) of Emirati job seekers expressed readiness to start working within 30 days, while 82.97% reported confidence in their skills to engage in the private sector, suggesting a strong and confident base of national talent in the UAE labor market.
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