Entrepreneurship has been at the heart of all economic discussions over the past few weeks.
The UAE government is investing AED 24 billion in this project, which aims to create 75,000 new jobs for Emirati citizens in the private sector
In keeping with the spirit and momentum of the topics discussed over the past few weeks as part of the “Projects of the 50,” the announcements made last week mainly concerned the Emiratization of the private sector. “NAFIS” is the federal program aimed at increasing the competitiveness of Emirati human resources and enabling them to take up jobs in the private sector over the next five years. This new program will be managed primarily by the Emirati Talent Competitiveness Council, an organization chaired by His Highness Sheikh Mansour bin Zayed Al Nahyan, with the aim of strengthening partnerships with the private sector. It is intended for both young and experienced Emiratis, with an investment of AED 24 billion to create 75,000 new private-sector jobs for Emiratis. As part of this initiative, the UAE government would encourage them to establish businesses in key sectors.But what is the Emiratization of the private sector?
Emiratization refers to prioritizing the employment of Emirati citizens. It is one of the government's highest priorities. Procedures began to be implemented in 2018 and were intended to regulate the process of employing Emiratis in the private sector. Emiratization aims to significantly increase the number of Emiratis in the labor market and their contribution to the national economy. Emiratization promotes development-oriented policies. This will lead to a considerable increase in the number of young people and adults who possess specific skills, including technical and professional skills.The program in detail
These new announcements include grants for students and recent graduates to take up positions in the private sector, a one-billion-dirham business development fund for graduates, a new child allowance, and a government-supported unemployment benefit. This program includes career-break and early-retirement plans for federal government employees who start new businesses. Among these new initiatives:- the Emirati salary support scheme for young Emirati graduates, designed to encourage the recruitment and training of graduates in private-sector companies.
- one year of salary support of up to AED 8 000 per month for Emirati university graduates
- one year of salary support of up to AED 6 500 per month for Emiratis holding a diploma
- one year of salary support of up to AED 4 500 per month for Emiratis who have completed secondary education
- The “Merit” program consists of monthly assistance of up to AED 5 000, paid for a maximum of five years. This support is intended for Emirati workers in specialized fields, including nurses, accountants and financial auditors, commercial lawyers, financial analysts, and coders;
- There will be unemployment benefits for Emiratis working in the private sector who lose their jobs due to circumstances beyond their control. This period of unemployment will last for 6 months
- The national healthcare program is an educational grant program aimed at training 10,000 Emiratis in the healthcare field over the next five years.
- Another measure will be introduced during 2022: the career break for Emiratis working in government sectors. This measure consists of a career interruption of 6 to 12 months while maintaining up to 50% of their salary. It will be available to a limited number of people, who will have the opportunity to return to their original positions after the break period.
- The retirement program will reduce the cost of Emirati pensions to zero for employers during the first year and help cover the costs over five years. Only for Emirati employees earning less than AED 20 000 per month.
What are the objectives of “NAFIS”?
- Build the largest partnership between the government and the private sector and empower the private sector as the backbone of the UAE's development.
- Provide jobs for 75,000 citizens of the United Arab Emirates in the private sector over the next five years, with an average of 15,000 jobs per year.
- Encourage Emirati graduates and government employees to seek employment opportunities in the private sector or launch their own business projects to contribute to the national economy.
