UAE: Reasons behind low rates of Emiratisation in the industrial sector

Low wages, poor benefits, uncertainty about job security and failure by firms to achieve the required Emiratisation rates are some of the main reason why fewer Emiratis are working in the industrial sector, according to a new report.

The report by Federal National Council (FNC), prepared by FNC’s Technical Affairs, Energy and Mineral Resources Committee, also included proposals that contribute to the development of national industries and the increase in Emiratisation rates.

The most important among them is the creation of a legislative mechanism that obliges factory owners to localise or set up supervisory and administrative professions in factories.

The report also called on both the Ministry of Industry and Advanced Technology and the Ministry Human Resources and Emiratisation to raise the percentage of Emiratisation in the industrial sector, find solutions that contribute to creating a strong national economy, demand specialisation in various industries, and inform citizen investors about the most important international trade agreements so they can benefit from them and the industrial sector in the country at large.

The committee members had attributed what it described as “weak Emiratisation rates” in the industrial sector to five main reasons.

These include low wages and privileges in the private sector for citizens; the failure of private authorities to achieve the Emiratisation rates a per the law; and employers requiring many years of work experience. The latter is difficult for fresh Emirati graduates, as there are no institution to train new graduates and offer them experience. Some countries have established institutes to train fresh graduates, according to the report.

Other reasons behind the low Emiratisation rates in the industrial sector include citizens' uncertainty about the security of the private sector. stereotypes about some professions and lack of awareness of their future.

The report also suggested the importance of coordination between the Ministry of Industry and Advanced Technology, technical and vocational institutes, and relevant authorities, to offer specialised educational programs focused on skills related to the needs of the industrial labour market.

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