Emiratisation is the UAE’s workforce nationalisation policy, requiring private sector employers to hire Emirati nationals at prescribed ratios. The policy addresses a structural feature of the UAE labour market: Emirati citizens constitute approximately 10 percent of the total population, with expatriate workers filling the vast majority of private sector positions.
Policy Framework
Emiratisation operates through a quota system mandating that private sector companies with 50 or more employees increase their Emirati workforce by a minimum percentage annually. Since 2022, the target has required companies to raise their Emirati headcount by 2 percent per year across skilled positions, with the aim of reaching defined nationalisation thresholds by the mid-2020s. Companies that fail to meet targets face financial penalties calculated per unfilled Emirati position.
Nafis Programme
The Nafis programme, launched in 2021, is the primary federal initiative supporting Emiratisation implementation. Nafis provides salary supplements to Emirati private sector employees (bridging the gap between typical private sector wages and higher public sector salaries), training and upskilling programmes, pension contributions, and support for Emirati entrepreneurs. The programme is designed to make private sector employment financially viable and attractive for Emirati nationals who have historically preferred government jobs.
Sectoral Application
Emiratisation requirements apply across all private sector industries but have been particularly emphasised in banking, insurance, telecommunications, retail, real estate, hospitality, and professional services. Certain sectors — notably construction and domestic services — have lower requirements reflecting the practical composition of their workforces.
Challenges
The policy confronts a persistent wage differential between public and private sector employment. Government positions offer higher salaries, shorter working hours, greater job security, and more generous benefits. Emiratisation seeks to close this gap through subsidies and mandates, but the structural incentive for Emirati workers to prefer public employment remains significant.
Role in Vision 2030
The Abu Dhabi Economic Vision 2030 identifies human capital development and national workforce participation as essential to building a sustainable post-oil economy. Emiratisation is the principal policy instrument for ensuring that economic diversification creates employment opportunities for citizens rather than merely expanding expatriate-dependent industries. The vision explicitly calls for a labour market in which Emirati nationals are productive participants across all sectors of the economy.