Clyde & Co Employment seminar: employment challenges in 2021/2022 and beyond
Employment, Pensions & Immigration
The Nafis (meaning to compete in Arabic) program was launched on 13 September 2021 as part of the UAE’s ‘Projects of the 50,’ and aims to support Emirati nationals to pursue their professional careers in the private sector.
Against an ambitious target of creating 75,000 jobs in the private sector by 2025, the program has a number of different strands by way of support to Emirati nationals seeking either to enter the workplace or to develop their career. It is also open to private sector employers essentially to partner with the UAE Government to facilitate employment opportunities and to increase the number of UAE nationals in their organisation. Alongside Nafis, the UAE Government has announced a general target of 10% Emiratisation in the private sector by 2025 in skilled and knowledge-based roles (with the current requirement being 2% for commercial organisations).
Eleven initiatives have been announced as part of the Nafis scheme (with nine being currently operational); these consist of the following:
|Salary per month||< 20K||20K - 30K||30K - 40K||40K -50K||50K >|
|Top-up||AED 5,000||AED 4,000||AED 3,000||AED 2,000||None|
Under this initiative, the Government will pay (on a rebate basis) state pension contributions for newly employed Emiratis for the first five years of employment if they earn less than AED 20,000 a month, as follows:
|Year 1||Year 2||Year 3||Year 4||Year 5|
Within Nafis, the following initiatives are aimed at generally supporting UAE nationals in pursuing their careers:
Alongside these initiatives, a supporting structure has been established to facilitate these programs with the establishment of an Emirati Talent Competitiveness Council. This Council is tasked with engaging with federal representatives and implementing the various strands to Nafis. Support to graduates setting up start-ups is also envisaged, as is a plan to encourage those employed in the public sector to take up opportunities in the private sector (and potentially move to early retirement from the public sector). Further, UAE nationals currently employed in the federal government can apply for sabbaticals at 50% of their salary, for six to twelve months to enable them to start their own businesses in the private sector.
Nafis offers an ambitious and exciting range of options for both employers and Emirati nationals. One key consideration for employers is access to these programs to support their employment of Emirati nationals with the caveat that they must subscribe to achieving 10% Emiratisation.
For further information about the Nafis programme, click here.