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The policy of nationalizing private sector jobs raises controversy among the Emiratis

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The policy of nationalizing private sector jobs in the UAE has sparked a local controversy in light of the reluctance of Gulf country nationals to work there. The government has been given a deadline ending in early 2023 to hire a specific percentage of Emiratis in each private establishment. The International Labor Organization notes that Emiratis mostly work in stable and relatively high-paying jobs in the country’s large public sector, and private sector companies do not offer similar salaries.

The researcher gave up Emirates Khalifa Al-Suwaidi resigned from his government post last June, but has so far been experiencing difficulties transitioning into the private sector as the deadline set by the authorities to locate private sector jobs approaches.

The UAE authorities had given a deadline to private companies employing more than 50 people to ensure that at least 2% of their employees were UAE nationals, subject to fines.

“We have reached a stage where we have a diversity of Emiratis in terms of skills and experience. The public sector cannot absorb many of these talents,” says Al Suwaidi, 34. “The private sector needs to be more accommodating,” continues the young man.

According to data released by the International Labor Organization, more than 90 percent of the workforce in the private sector in the UAE are foreigners.

The international organization notes that Emiratis mostly work in stable and relatively well-paying jobs in the country’s vast public sector. Private sector companies do not offer similar salaries.

Vacancies for citizens

“I have been applying for a job for some time, but to no avail,” says Al-Suwaidi, explaining that many employers did not hire him because they assumed he would ask for a high salary.

As the January 1, 2023 deadline approaches, many companies are rushing to hire Emiratis, while many recruiters say they have received “many vacancies” from companies, many of which will be unable to meet their targets in the next decade. time.

“It will be difficult,” said Hamza Al-Zawali, founder of “Iris Executives”, which specializes in hiring citizens of Gulf Cooperation Council countries.

Non-compliant firms risk fines of up to 6,000 dirhams ($1,633) for every job not performed by an Emirati citizen within the percentages set by the government.

“discontent”

The UAE is a major regional hub for many international companies and is one of the ten richest countries in the world in 2020, according to the United Nations.

The International Monetary Fund says its per capita GDP is over $47,000 per capita, higher than that of France and slightly higher than that of the United Kingdom.

The UAE has one of the lowest unemployment rates in the Middle East, but unemployment data across the Emirates is not available.

The Dubai Statistics Center pegged unemployment rates in the emirate at 4.2% in 2019, indicating that 68% of them had not worked before. Inter-Emirate unemployment in Dubai has increased year-on-year since 2012, when it was 2.57%, according to the centre.

Mira Al-Hussein, an Emirati researcher at the University of Oxford, believes there is “resentment” among some citizens, especially after the government last year made changes to federal law that grants foreign investors full ownership of foreign companies instead of a 49% share. as was the case previously.

“Previously, Emiratis who did not want to enter the private sector could wait to get a job in the public sector, start their own business or become the local 51% partner in the business,” Al-Hussein said.

“The depletion of these multiple sources (…) has led to a narrowing of the available options,” he added.

Social networks have become an important platform for citizens to express their discontent, in what Al-Hussein describes as a rare occurrence, noting: “We have not witnessed such public discussions.”

This became apparent earlier this month after an advert asking Emiratis to apply for the job of ‘sandwich maker’ sparked outrage and some deemed it an offensive attempt to provide job opportunities, prompting authorities to open an investigation.

“This is a joke,” wrote one Twitter user on the vacancy announcement.

And another wrote in a tweet that was reposted by hundreds of accounts: “Lack of administrative, financial and technical jobs, until the matter reached the record of sandwiches?! Oh, time.”

incentives

And Emirati Minister of Human Resources and Emiratisation, Abdul Rahman Al-Awar confirmed last month that more than 14,000 Emiratis entered the job market in 2022, and an average of 100 people joined the job market on daily basis.

Aiming to motivate citizens, the government announced last month that it will subsidize the salaries of citizens in the private sector and give them a financial bonus of up to 7,000 dirhams ($1,906) if the monthly salary does not exceed 30,000 dirhams ($1,906). 8,168) .

There is no Emirati minimum salary in general, but in the emirate of Sharjah it is 25,000 dirhams ($6,807).

For her part, Eman Al-Hussein, a non-resident researcher at the Arab Gulf States Center in Washington, confirms that the UAE is joining “a broader push in the Gulf to change the dynamics of the relationship between state and society” and to keep citizens out of government jobs.

“Gulf countries want their citizens to adjust their expectations, contribute to (business of) the state and accept jobs with longer hours and perhaps lower incomes,” he added.

According to Al-Zawali, it is “not possible” for the UAE government to continue with growth and jobs. “The most sustainable way is to ensure that the economy continues to absorb, train and work with the Emirates.”

France 24/AFP

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