Finding jobs for UAE nationals

Dubai: The UAE creates 800,000 new jobs every year, yet there are 36,000 UAE nationals seeking jobs with more than 15,000 fresh university graduates entering the work force every year.

The vast majority of those benefiting from the creation of the new jobs are expatriates, leaving a significant number of qualified and skilled UAE nationals without jobs.

Such is the severity of the situation that the World Bank and IMF have both pointed to unemployment as a major hindrance to development in the Arab world, including the UAE.

However, they have also warned regional governments not to implement nationalisation policies that could prove to be counterproductive, as has the implementation of quotas in their view, which until recently was the prime emiratisation tool of the UAE.

In what could be seen as a more credible self-criticism, the UAE's National Human Resources Development and Employment Authority, Tanmia, issued a report analysing nationalisation policies of GCC governments, and found the quota system to have more negative effects than positive.

Dr Ali Bin Abdullah Al Ka'abi, UAE Minister of Labour, recently declared the quota system to be ineffective, saying the ministry's focus would now turn to the emiratisation of professions.

New targets

In December 2005 the ministry of labour issued a ministerial decision requiring the emiratisation of public relations officers (PRO), signalling a shift from the previous emiratisation policy of meeting assigned quotas.

Earlier this year, the minister said that the emiratisation of other professions would only be enforced if that of the PROs proves to be a success. According to Dr Al Ka'abi, 1,700 of the 3,000 PRO positions in the UAE have been emiratised to date, which he has reportedly called a success.

In June, two ministerial decisions were issued by the ministry of labour requiring the emiratisation of secretarial positions as well as managerial positions in human resources departments.

Dr Mouawiya Al Awad, acting director of the Centre for Labour Market Research and Information (CLMRI) at the National Human Resources Development and Employment Authority, Tanmia, points to statistics to justify the ministry's new policy.

Almost half of the unemployed UAE nationals, he says, are qualified at the secondary school level. That, he argues, makes them fit for certain positions but not others.

Like PRO positions, says Dr Al Awad, secretarial positions will also target secondary school graduates.

"Since secretarial positions require a minimum secondary school qualification, the emiratisation of such jobs will significantly help curtail unemployment among nationals", he said.

The emiratisation of human resources managers comes from a strong belief in the ministry that such a move will pave the way for further emiratisation in the private sector.

According to the minister, the emiratisation of human resources managers will create a "solid base" for the integration of UAE nationals into the job market.

National

Pension: Employer pays 12.5 per cent of full salary (employee pays 5 per cent, government pays 2.5 per cent)

Minimum wages for UAE nationals

Expatriate

Medical check up and residence visa stamps are not the responsibility of the employer if the employee is a woman on her father or husband's visa.

Total: Dh1,220 - 4,020
(Does not include optional costs of travel and food if hiring from abroad.)

Additional costs

Labour card renewal: Dh500 - 2,500 every 3 years

Gratuity based on seniority and salary

The Quota System

-Cabinet decisions were issued setting Emiratisation quotas for three parts of the private sector:

- One national with special needs equates 2 nationals without special needs.

Public Relations Officers (PRO)

Human Resources Policy

1) Month 1-18: emiratise 50 per cent of all human resources positions in the company

2) Month 19-36: emiratise the required human resources managerial positions.

-- Administrative decision no 24 for 2006/ August 2, 2006

Definition

Exceptions

Companies with less than 100 employees.

Training

Awtad: A new programme to train and develop UAE nationals in the human resources field, which is sponsored by Tanmia, the Abu Dhabi Council for Emiratisation and "other agencies, programmes and departments concerned with the development and employment of national human resources".

Secretaries

Policy

Definitions

The ruling applies to secretaries and executive secretaries. Secretaries: assistant administrators, assistant executive secretaries and medical and legal secretaries

Executive secretaries: personal assistants to CEOs, personal assistants to chairmen of the board of directors.

Exceptions

Companies with 50 employees or less.

Possible exemptions

Employers who train nationals as secretaries within one year of committing to it can renew their current expatriate secretaries' labour cards.

Companies will be exempted from the decision by the undersecretary depending on "the nature of their business, location, the work environment and other reasons"- Administrative Decision no 15/July 16, 2006

Penalties

-- Companies which do not meet emiratisation quotas have their transactions stopped. Those not fulfilling minimum wage requirements will be considered to be in violation of quota requirements.

Total number of job seekers registered at Tanmia

The breakup of unemployment

-- Tanmia defines jobseekers as the unemployed as well as those employed nationals that are looking for other jobs.

Labour force: 800,000

Employing a GCC national