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UAE: New incentive announced for companies that meet Emiratisation targets

A new platform also allows suppliers in the UAE and abroad to register and offer services to federal government entities

Published: Thu 14 Dec 2023, 12:41 PM

Updated: Thu 14 Dec 2023, 10:39 PM

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Photo: KT file

Photo: KT file

Companies that meet Emiratisation targets will now be prioritised in bidding for government procurement contracts, it was announced on Thursday.

The Ministry of Human Resources and Emiratisation (Mohre) and the Ministry of Finance (MOF) said the new initiative comes as part of efforts to ensure the success of the Emiratisation drive in the private sector.

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"Granting priority to companies committed to achieving Emiratisation targets in the government procurement system is a form of support and an incentive for them," said Younis Al Khoori, undersecretary of the MOF.

Private companies with 50 employees or more are required to add two per cent Emiratis to their workforce every year until 2026. The annual target had been split into two: Add 1 per cent in the first half of the year and the other 1 per cent in the second.

Since its rollout, the Emiratisation scheme is strictly being implemented in the country, with violators facing hefty fines. Earlier this month, Mohre said nearly 900 companies were caught skirting the rules within a six-month period, with more than 100 referred to the public prosecution.

“The launch of this new benefit .. reflects the shared vision and responsibility among government entities to support the Emiratisation process," said Ayesha Belharfia, undersecretary for Emiratisation affairs at Mohre.

List of benefits

The new incentive complements other benefits for compliant companies, which include:

  • Enlisting them in the Emiratisation Partners Club
  • Nafis benefits, such as financial support
  • Provision of a database of UAE nationals qualified to work in the private sector,
  • Programme that provides pension contribution support

“The Ministry of Finance is working to meet all the necessary requirements to advance the Emiratisation process, ensure the active participation of UAE nationals in the labour market, and increase their contribution to the national economy," Al Khoori.

The ministry recently launched a procurement platform as part of its digital transformation strategy, allowing suppliers in the UAE and abroad to register and offer services to federal government entities.

About 14,000 suppliers have registered in the digital platform, which allows users to participate in tenders and online auctions, as well as track purchase orders and invoices. It also aims to enhance the participation of small and medium-sized enterprises (SMEs) in tenders by offering them special advantages.

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