Abu Dhabi: The Emirati work force in the insurance industry will be increased to 15 per cent by 2015 from the present 8.9 per cent, the minister in charge of the industry told the Federal National Council on Tuesday.

Sultan Saeed Al Mansouri, Minister of Economy, told the House that out of 8,590 workers in the insurance industry, 768 are Emiratis, accounting for 8.9 per cent. “Citizens accounted for 5.5 per cent in the insurance industry in 2010 and the government plans to increase the Emirati work force in the insurance industry by 93 per cent to at least 15 per cent by 2015,” Al Mansouri said.

The minister said the Emirati work force in national businesses was 8.8 per cent in 2013, while citizens accounted for 9.8 per cent in foreign companies.

“Any new insurance company cannot be licensed unless the Emirati work force is at least 15 per cent,” the minister said as he was responding to a question by Ali Eisa Al Nuaimi, a member from Ajman.

Al Nuaimi said Emiratisation efforts in the insurance industry, whose gross premium was worth Dh29.5 billion last year, were falling short, suggesting that the Economy Ministry should not tolerate “bogus Emiratisation”, in which citizens are being hired only on paper to allow companies to meet quotas set by the Government.

Al Nuaimi said the UAE Government wants to increase the number of its citizens employed in the private sector tenfold by 2021, and will intervene in the labour market if necessary to reach that goal.

“Targets for Emiratisation in the insurance industry was 15 per cent in 2003, to be increased by 5 per cent on a yearly basis. Now, after more than 10 years, Emiratis are no more than 8 per cent,” Al Nuaimi said.

Less than 15 per cent of the UAE’s population of approximately nine million people are estimated to be citizens. More than two-thirds of UAE citizens in employment work in the public sector, according to the International Monetary Fund.

The UAE government has been keen to attract more of its citizens to the private sector to diversify the economy and ease pressure on state finances.

Members of the Federal National Council have repeatedly demanded Emiratisation quotas be introduced in all private companies and salaries should be subsidised by the Government.

A report by the House said Emiratisation efforts lack strategic planning, tangible results and coordination between various organisations in charge of employment and training of job seekers.

There are 3,8 million jobs in the private sector, of which at least 800,000 jobs can be filled by citizens. But just 20,000 to 30,000 Emiratis are employed in private businesses, while the line of job seekers is constantly growing, according to the report.

Preference for public sector jobs and a lack of awareness about long-terms prospects within the insurance sector are making it difficult for UAE insurance companies to attract UAE national candidates in enough numbers, industry sources confirmed.

Sources say the insurance sector is passing through one of its toughest periods ever. Intense competition has consistently chipped away at already thinning margins, overall profitability has consequently been hit, and the industry has been overtaken by developments on the technology front which counters the need to have sizeable staff requirements.