UAE urges private firms to hire nationals, offers 1-year paid leaves for govt employees to start business

The UAE is making efforts to make private jobs and business easier for its citizens.

The government has urged private firms to hire local talents to reach at least 10 per cent by the end of 2026. Companies that fail to recruit at least two per cent of nationals by next month will face a fine, AFP reported.

Not just this, the UAE has also announced that it will implement a year-long paid leave for citizens working in the public sector to start their own businesses. The measure is expected to begin from January 2, 2023. The individuals will be paid half of their salaries for a year.

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The announcement was made by the ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, vice president and prime minister of the country to encourage more businesses.

In a tweet, Sheikh Mohammed tweeted, "Today, within the Council, we decided on sabbatical leave for citizens working in the government who wish to run their own businesses. The leave lasts for a full year, with half the salary, while preserving the job. Our goal is to encourage our youth to take advantage of the huge business opportunities offered by our national economy."

Home to over nine million people, the International Labour Organisation claimed that only 12 per cent of nationals are recruited in the private sector with over 85 per cent taken by foreign nationals.

UAE like any other country always advocated for the public sector as an employment vehicle for its citizens. But time is changing now.

The government also announced income support of AED 7,000 ($1,900) for citizens who joined the private sector and have an income of less than AED 30,000.

However, no minimum wage has been decided for Emiratis. But in Sharjah, a minimum salary of AED 25,000 has been entitled.

Despite having one of the lowest employment rates in Middle East Asia, data showed that Emiratis are not publicly available. The rate climbed to 4.2 per cent in 2019 from 2.5 in 2012.

Many experts believe that with this measure government is trying to make citizens alter their expectations, and work for long hours with less salary.

An Emirati researcher at Oxford said that discontent in the country has been increasing especially after the govt scrapped the laws capping foreign ownership at 49 per cent.

The debate sparked furtherafter an advertisement for a "sandwich maker" at a Subway store was criticised prompting govt probe later.A user on Twitter said, "The lack of administrative, financial and technical jobs has led to 'sandwich maker'... Oh, what an age!"

(With inputs from agencies)

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