The emiratisation program, formerly known as “Tawteen”, is one of the UAE’s thoughtful initiatives. The program was first launched in the 1990s by the UAE government experiencing a heavy dependency on expatriates to fill professional roles. The goal behind this policy is to promote the employment of Emiratis in the public and private sectors.
According to the milestones, private-sector companies employ a certain percentage of Emiratis for selected sectors. This means a new particular focus on smaller businesses with a workforce of 20-49 employees as announced by the MoHRE.
The top sectors included in the account of the new regulation are financial, real estate, information and communication, hospitality, residence services, transformative industries, and others.
This article is written to walk you through Emiratisation for small businesses UAE. We’ll be going to cover about all the major aspects in UAE.
What is Emiratisation in UAE?
The emiratisation program is a UAE government initiative. It aims to promote the UAE talent in the private sector. According to the Emiratisation rule in UAE, small businesses with 20-49 employees are now included in the Emiratisation initiative. They are required to meet specific Emiratisation targets. The businesses are expected to hire at least one Emirati by the end of 2024 with one additional Emirati hire every year.
Emiratisation is a well-planned initiative by the UAE government. The policy ensures professional growth for the Emiratis around the UAE. Launched first time in the year 1990s, when the region experienced a massive influx of expats to fill roles. Thus, the UAE government took the initiative, commonly known as Emiratisation today.
Benefits of Emiratisation for Small Businesses
From enhancing brand reputation to access to government support and incentives, Emiratisation has numerous benefits for small businesses. Few of them have been discussed in detail, let’s unwrap the benefits of Emiratisation for small companies in Dubai
Access to government incentives and support
Small businesses participating in Emiratisation can benefit from various government incentives, such as:
- Financial grants
- Subsidies
- Reduced fees
These programs are designed to ease the cost burden on businesses that hire Emirati nationals. Additionally, businesses may receive training support to develop local talent.
Enhanced brand reputation
Hiring Emirati employees helps small businesses build a positive reputation in the community, demonstrating a commitment to national goals. Being seen as an employer who supports local talent can foster trust and loyalty among customers. This alignment with Emiratisation improves a business’s corporate social responsibility image.
Contribution to the national economy
Small businesses contribute to reducing unemployment by hiring Emiratis. Emiratisation helps them to support the UAE’s broader economic diversification efforts. This participation strengthens the local workforce. Ultimately, helps build a sustainable, knowledge-driven economy. Aligning your business with the UAE’s long-term vision for economic growth.
Developing a skilled Emirati workforce
Emiratisation programs provide small businesses access to a talent pool of skilled Emirati nationals. Training and development investment in Emiratis meets regulatory requirements. It also enhances your team’s capabilities. In turn, it creates a loyal workforce. A team that’s motivated to contribute to the business’s success.
Importance of hiring Emiratis for Small business
The importance of Emiratisation for small businesses can’t be denied. Emiratisation helps businesses to comply with the law, gain access to government incentives, attain long-term sustainability, and others.
Legal Compliance
Hiring Emiratis is essential for compliance with the UAE labour laws. According to law, businesses must meet specific Emiratisation quotas. Organizations failing to comply with these regulations can lead to penalties. They may face restrictions on business operations. Small businesses ensure they adhere to local regulations by hiring Emirati nationals. In this way, they avoid fines and contribute to national workforce development.
Government Support and Incentives
Small businesses that hire Emiratis gain access to government incentives such as:
- Grants
- Subsidies
- Discounts on licensing fees
These benefits help reduce operational costs and encourage investment in local talent. Government-backed programs also offer training and development resources, making it easier for businesses to invest in and upskill Emirati employees.
Market Access and Reputation
Hiring Emiratis enhances your brand reputation in the local market, building trust with customers and partners. It shows your commitment to supporting the national economy and contributing to local job creation. This positive image can lead to increased market opportunities and stronger relationships with both government entities and local consumers.
Talent and Skill Development
The inclusion of Emiratis brings valuable skills, education, and fresh perspectives. Businesses can access a highly motivated workforce by hiring locally. The Emiratis are eager to contribute to the growth of their companies. Their participation in training and development programs further helps businesses cultivate a knowledgeable workforce.
Long-Term Sustainability
Small businesses can contribute to the UAE’s labor market sustainability. This can be achieved by hiring Emiratis. Emiratisation helps businesses reduce dependency on foreign workers, leading to a more stable workforce. This contribution to the business’s long-term growth. While ensuring it remains aligned with the UAE’s vision.
Challenges Faced by Small Businesses in Completing Quota
Despite the significance of Emiratisation, organizations often face challenges meeting quotas. The financial constraints and operational challenges are some of the challenges. These challenges have been discussed in upcoming paragraphs.
Financial Constraints
Small businesses face financial limitations. It makes it difficult to meet Emiratisation quotas. The cost of hiring Emiratis, including
- Salaries
- Benefits
- Training programs can strain limited budgets
Further, businesses may need to invest in workplace adjustments or infrastructure to accommodate new employees. This can be financially challenging for smaller operations.
Talent Acquisition and Retention
It is difficult to find and retain skilled Emirati talent for small businesses. This is particularly true when competing with larger firms. As the big firms offer higher salaries and more attractive benefits than small businesses. As a result, small businesses may struggle to provide career growth opportunities. They don’t offer the job stability that Emiratis expect. Ultimately, this leads to high turnover rates and difficulty in maintaining a stable workforce.
Operational Challenges
Small businesses may face operational challenges when trying to integrate Emirati employees into their teams. This includes:
- The need for additional training
- Adapting to new work cultures
- Ensuring that Emiratis have the necessary skills to excel in specialized roles.
Businesses may find it difficult to incorporate new talent into their day-to-day operations without proper support systems.
Government Regulations
The complex regulations surrounding Emiratisation can be a challenge for small business owners. Particularly those with limited knowledge of the legal framework. Employers often fail to comply with Emiratisation quotas, reporting requirements, and other related laws. They think it can be time-consuming and require expert advice, such as an Emiratisation recruitment agency. As a result, failing to meet these obligations results in fines or restrictions. It further complicates business operations.
Practical Tips for Successful Emiratisation
Understanding the Emiratisation requirements is a game-changer. It helps you build a strong employer brand by investing in training programs and offering benefits to workers. Learn more practical tips for the successful implementation of Emiratisation
Understand the Emiratization Requirements
Familiarize yourself with the quotas and regulations to successfully implement Emiratisation. Must understand the number of Emiratis you need to hire based on your business size. Also, the types of roles they need to fill. Lastly, staying updated with any changes in laws or policies. As it will help ensure compliance and avoid penalties.
Build a Strong Employer Brand
As a small business, you have a chance to attract Emirati talent by developing a reputation as an employer of choice. You can highlight your commitment to Emiratisation in your branding and recruitment efforts. Opportunities showcasing, a supportive work environment, ultimately bring the positive impact your business has on the local community. In short, a strong brand will resonate with Emiratis seeking long-term, stable employment.
Invest in Training and Development
Offering training programs focused on upskilling Emirati employees in technical and soft skills. Create a workforce that’s capable and confident by providing ongoing professional development. This investment in career growth helps meet Emiratisation targets. But, it also boosts employee retention and job satisfaction.
Offer Competitive Compensation and Benefits
Your compensation packages must be competitive within the local market to attract and retain Emirati talent. Offer salary, benefits, and bonuses that align with or exceed industry standards. Additionally, offering perks such as:
- Health insurance
- Annual leave in UAE
- Professional growth opportunities can make your business more appealing to skilled Emiratis.
Leverage Government Support
Take full advantage of the government initiatives and incentives available to businesses that hire Emiratis. Many programs offer financial support, subsidized training, and even assistance with hiring costs. Work closely with relevant government entities to understand how you can access these resources, which will help ease the financial burden and accelerate your Emiratisation efforts.
Contact RAAD Recruitment for the best emiratisation recruitment in UAE.
Looking to successfully meet your Emiratisation goals and hire top Emirati talent? Then, look no further than RAAD Recruitment. We are a leading emiratisation recruitment agency in the UAE, that specializes in connecting businesses with highly skilled Emirati professionals across various industries. RAAD provides tailored recruitment solutions by meeting Emiratisation in private sector. So, whether you’re a small business or a large corporation, we help you meet Emiratisation quotas efficiently.
At RAAD Recruitment, we understand the local regulations and recruitment challenges. This will ensure you a smooth hiring process. Our network of qualified Emirati candidates to find the right fit for your business needs. From sourcing candidates to onboarding, RAAD offers end-to-end support! We have the practical experience of Emiratisation for Small Businesses, making the recruitment process seamless for you.
Let us help you build a skilled, diverse, and compliant workforce. In the meantime, we contribute to the UAE’s Emiratisation vision. Contact us today to learn more!
