Emiratization targets in the private sector
Emiratization within the UAE’s financial sector continues to be a key priority. In 2023, 2,720 UAE nationals were employed, surpassing the target of 1,875. The Emiratization rate in leading banking positions also rose by 8%, reaching a total of 31%.
The Ministry of Human Resources and Emiratization (MoHRE) emphasizes the importance of meeting Emiratization targets, which are essential for achieving the UAE Government’s economic growth objectives. The focus remains on empowering national human capital. By 30 June 2024, companies in the UAE will face fines if they fail to meet Emiratization targets. Additionally, the policy requires firms with 50 or more employees to hire at least one Emirati. The Emiratization strategy is being reinforced with a new budget of USD 1.74 billion, aiming to integrate 36,000 citizens into the private sector by 2024.
The MoHRE has also started implementing a Cabinet Decision to extend Emiratization requirements to more companies. Over 12,000 firms with 20-49 employees in 14 specific sectors are now required to hire at least one Emirati in 2024, increasing to two in 2025. Non-compliant companies will face annual financial penalties amounting to AED 96,000 for each unfulfilled position in 2024, collected as of January 2025. Fines will reach AED 108,000 in 2025 for incompliant companies, collected from January 2026.
The UAE Government encourages companies falling short of their targets to leverage the Emirati Talent Competitiveness Program (Nafis) platform, providing access to qualified Emirati nationals seeking employment opportunities across various sectors. Nafis has reported a 28% increase in private company registrations since the beginning of 2024.
With the UAE’s commitment to innovation and economic diversification, businesses are increasingly investing in skills development and creating a culture that attracts and retains top talent, positioning the country as a global leader in both talent competitiveness and sustainable growth.
All the CEOs surveyed in the UAE expect their organization’s headcount to increase over the next three years, with 72% predicting a rise of less than 5%. This is slightly higher compared to the Middle East, where 57% of CEOs expect less than 5% growth. Notably, none of the UAE CEOs expect their headcount to remain unchanged, whereas 11% of Middle Eastern CEOs do. Overall, both regions place minimal emphasis on significant decreases in headcount, pointing to a generally positive employment outlook.
However, labor market shifts, specifically an aging workforce, have a high impact of on organizations’ employee recruitment, retention and overall culture, according to 28% of local CEOs. Similar views were recorded in the Middle East (19%) and globally (23%).
While concerns about the long-term impacts of hybrid working models are relatively low both in the UAE (16%) and Middle East (12%), most CEOs in these regions expect traditional office-based roles to continue over the next three years (88% and 91% respectively). 83% of global CEOs also envision a similar corporate environment. Additionally, many CEOs are likely to reward employees who regularly come into the office. Both global (87%) and Middle Eastern (75%) CEOs plan to offer favorable assignments, raises or promotions to encourage employees to work on-site. Half of UAE leaders said they were either neutral or likely to reward in-office work.
32% of CEOs in the UAE are concerned about the competition for talent, with 68% feeling organizations should invest in skills development and lifelong learning in communities to safeguard access to future talent (slightly below the global average of 80%). While 59% of CEOs worldwide believe organizations should help ease the cost-of-living crisis for customers to safeguard future economic growth, only 36% of CEOs in the UAE agree. The results in the Middle East (39%) also suggest CEOs may view this issue as less critical or more complex. These regional variations reflect CEOs’ different priorities and perceptions about the role of organizations in addressing this challenge. Business leaders in the UAE (38%) are also cautious about the number of employees retiring, coupled with a lack of skilled workers to replace them. As for the Middle East, 35% of CEOs are more concerned about the widening expectation gap between older and aging employees compared to the next generation.
Globally, 80% of CEOs support engaging with communities and fostering positive internal cultures to safeguard future productivity. While organizational cultures can vary across regions, CEOs in the UAE and Middle East are also in favor of this engagement, but slightly less than the global average (68% and 69% respectively). The majority of CEOs worldwide (80%) also anticipate the need to balance centralized and devolved strategies in response to political conflict and climate change. In the UAE, 52% of CEOs agree. This insight underlines a broad consensus on the importance of skills development, community engagement and adaptability in leadership, with regional fluctuations reflecting diverse priorities and challenges.
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