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Emiratization of UAE: Firm fined AED400m for failing to meet 2022 targets – News

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More than 50,000 Emiratis now work in the private sector, with 28,700 joining since the launch of the Nafis scheme



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published: Wednesday, January 11, 2023 at 5:03 pm

Last updated: Wednesday, January 11, 2023 at 6:06 pm

The UAE Ministry of Human Resources and Emiratization (MoHRE) has fined private companies Dh400 million for failing to meet the 2022 Emiratisation target. Companies with 50 or more skilled employees must own 2% of the emirate’s shares by the end of last year.

Businesses are fined Dh72,000 for every Emiratis not employed. A federal law aims to increase the emiratization rate by 2% a year, reaching 10% by the end of 2026. Some 9,293 companies met their 2022 goals.

The Board of Directors of the UAE Council for Talent Competitiveness (Nafis) held its first meeting of 2023 on Wednesday to review the program’s achievements in qualifying Emiratis for private sector work and employment opportunities.

MoHRE recorded 227 incidents of fake Emiratization. Administrative penalties were imposed on 109 illegal places that were downgraded to the third category.

Some 20 cases were referred to the Public Prosecution for further action and benefits were suspended for 130 nationals. The process of recovering the amount paid in these cases has already begun.

A UAE resolution provides a comprehensive legal framework to limit negative practices that affect the realization of Emiratisation goals and policies. According to the resolution, if an institution conducts false Emiratisation to obtain Nafis benefits, an administrative fine ranging from AED 20,000 to AED 100,000 per false Emirati employee will be imposed. Financial support and other benefits provided by Nafis will be suspended and amounts paid will be recouped.

70% increase in Emiratis in private sector

Deputy Prime Minister and Minister of the Presidency Sheikh Mansour bin Zayed Al Nahyan chaired the Nafes meeting, and Minister of Foreign Affairs and International Cooperation Sheikh Abdullah bin Zayed Al Nahyan Al Nahyan attended the meeting.

There are now more than 50,000 Emiratis working in the private sector, and 28,700 have joined the Nafis scheme since its inception. Increase the number of Emiratis in the private sector by 70% by 2022.

The number of beneficiaries of the Nafis funding scheme reached 32,566. Emiratis participating in the scheme enjoy perks such as wage support and unemployment benefits.

Figures released on Wednesday showed 1,300 male and female students had enrolled in the scheme’s National Health Care Scheme and 643 in the Talent Scheme.

The number of registered partners on the Nafis platform has reached 7,017. Nearly 17,500 job openings have been posted on the platform.

In addition, since its launch, Nafis has signed 24 agreements with strategic partners, including 6 with universities and 4 with strategic partners in the semi-government sector, committing to over 11,000 jobs through outsourcing companies and suppliers .

Goals for this year

The Council discussed the 2022-2026 labor market supply and demand strategic plan; the most attractive and critical sectors, with a focus on Emiratisation efforts; More effective ways” to advance the private sector’s Emiratisation agenda.

As the Khaleej Times reported earlier, companies must increase the number of Emirati in skilled positions to 4% by the end of 2023. The board approved the goal on Wednesday.

The meeting also discussed the results of the first phase of the ‘Nafis… Your Way’ campaign, which aims to highlight UAE success stories in the private sector and change perceptions of the work environment and opportunities it offers. During 2022, more than 101 success stories were shared through visual, audio and written communications, as well as social media platforms.

The Board also approved the establishment of the Nafis Youth Council – a platform for engaging with youth in the private sector.

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