The United Arab Emirates today unveiled a sweeping programme of reforms and financial incentives to drive new private sector opportunities for Emiratis.
Officials on Sunday announced an investment of Dh24 billion had been allocated to create 75,000 new private sector jobs for UAE nationals.
The new announcements include grants for students and fresh graduates to take up private sector roles, a billion dirham graduate business development fund, a government-backed new private sector child allowance, unemployment benefits as well as career break and early retirement schemes for federal government employees starting new businesses.
They follow 13 grand projects announced last week that revealed progressive reforms for residential visas and several economic programmes that will bolster the country’s growth.
Speaking at the event, Mohammad Al Gergawi, Minister of Cabinet Affairs of the UAE, said, “The projects announced today are closely associated with two important principles on which the ‘Projects of the 50’ are based. The second and the fourth principle; we believe building a dynamic economy is a national responsibility.”
The minister said the UAE continues to draw inspiration from the wisdom of its Founder, the late Sheikh Zayed. Citing the beloved Ruler, Al Gergawi noted, “He said, our people are far more important than factories. Sheikh Zayed continues to live on in our march towards the upcoming years. The tree he planted continues to bear fruit and his foundational principles continue to be upheld by his sons. On this note, we believe, development is based on human resources.”
Watch Saeed Al Awar, head of Rothschild & Co Middle East, talk about why these initiatives will encourage Emiratis to see the success that can be achieved in the private sector.
Commenting on the newly launched scheme, His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, noted that the developments are in keeping with the country’s ambition to empower its people and enhance the sustainability of its economy.
A special Dh1 billion fund will grant loans to fresh graduates and university students to start their own businesses.
UAE nationals employed in the private sector have the option to retire early in order to start their own businesses. Early retirees will be given financial incentive to pursue their entrepreneurial dreams.
The UAE government has announced temporary financial aids for Emiratis who lose their jobs in the private sector due to circumstances beyond their control. They will be supported for six months as they search for a job.
Firms in the UAE have also been given Emiratisation targets. They have to increase the number of Emiratis by 2 per cent per annum for five years – to reach 10 per cent.
The government has also announced a retirement fund for Emiratis in the private sector.
For the first time, monthly allowances will be given to Emirati parents in the private sector to raise their children. They will get Dh800 per child per month, with a maximum of Dh3,200.
Another programme will see Emiratis in specialised private sector fields — like health — get paid an additional Dh5,000 per month for five years.
Mohammad Abdullah Al Gergawi, Minister of Cabinet Affairs, said the government will bear the cost of training Emiratis for the private sector. During this period, university graduates will be paid Dh8,000 per month.
After the training, they will be given Dh5,000 per month in addition to their salaries.
The UAE Government has announced the allocation of Dh24 billion to employ 75,000 Emiratis in the private sector.
The scheme — called Nafis — will have 13 projects and is in keeping with a dedicated plan designed to boost the employment of UAE nationals in the private sector.
(Except for the headline, this story has not been edited by The Finance World staff and is published from a syndicated feed.)
