The imperative of diversity and Emiratisation in UAE workplaces, according to expert

• A recent PwC survey shows that the UAE has successfully placed 131,000 Emiratis in private sector jobs, exceeding its 2024 target of 75,000.
• McKinsey’s research shows companies with high ethnic diversity outperform financially by 39%, reinforcing the UAE’s focus on Emiratisation and workforce inclusion.
• For businesses in the UAE, integrating Emirati talent and utilizing expatriates’ expertise can boost innovation, strengthen market connections, and drive long-term success.

Expert insights by Marc Chammaa, Director of Human Resources at Seed Group and The Private Office of Sheikh Saeed bin Ahmed Al Maktoum

The UAE is widely recognised for its strong economy, which attracts professionals from around the world due to its business-friendly environment, high quality of life, and forward-thinking policies. With expatriates comprising approximately 88.5% of the population, the country thrives on a diverse workforce that drives its global competitiveness. This diversity, along with the UAE government’s Emiratisation policies, allows businesses to incorporate local expertise while benefiting from a vast international talent pool.

In this article, let’s look at how workplace diversity and Emiratisation are key drivers of innovation, business value, and sustainable growth for UAE-based companies.

The UAE’s Anti-discrimination and Emiratisation policies

The UAE has built strong legal measures to prevent discrimination and promote inclusivity in the workplace. Federal Decree-Law No. 34 of 2023 on Combating Discrimination, Hatred, and Extremism prohibits acts of contempt toward religions, as well as discrimination based on race, religion, ethnic origin, and caste. Complementing this, the UAE Labour Law (Article 4) explicitly bans discrimination in employment based on gender, race, colour, religion, national or social origin, or disability.

What is Emiratisation?

Emiratisation is a government-driven initiative aimed at increasing the participation of UAE nationals in the private sector, ensuring that local talent is effectively integrated into the workforce. The Emirati Human Resources Competitiveness Council, known as Nafis, spearheads this effort by implementing national programs designed to enhance Emiratis’ employability and competitiveness. 

Launched in 2021, Nafis aims to boost Emirati employment by mandating a 2% annual increase in skilled Emirati hires in the private sector. By 2026, the program targets a minimum of 10% Emirati representation in skilled roles. Nafis also offers salary support, professional development programs, and financial incentives for companies that recruit UAE nationals. As of 2024, the UAE has surpassed its initial goal, placing 131,000 Emiratis in private-sector jobs — well ahead of the 75,000 target set for next year.

Diversity and Emiratisation as key to business development

In today’s global economy, I believe that workplace diversity is no longer a ‘nice-to-have’ concept but a strategic necessity that drives company development. In my nearly two decades of experience in Human Resources, I have seen how diverse teams create a lively workplace, boost creativity, enhance problem-solving skills, and improve understanding of global markets.

McKinsey’s Diversity Matters Even More report reinforces this reality. It reveals that companies in the top quartile for ethnic diversity are 39% more likely to outpace industry financial benchmarks. Essentially, their finding shows the close link between diversity and business performance, proving that inclusive workplaces create equally dynamic and profitable environments.

For businesses in Dubai, workplace diversity takes on an added dimension. An exceptionally forward-thinking and culturally diverse atmosphere is created by the mix of innovative expatriates and Emirati talents. Emiratisation, in my opinion, is not just a legal necessity but also a crucial chance for companies to engage with local customers, decision-makers, and the subtleties of market trends. Therefore, the UAE government’s Emiratisation policy helps ensure that this diverse workforce includes a strong representation of local talent.

Additionally, Emiratisation deepens businesses’ connections with the community, which means companies gain access to local perspectives that enrich corporate decision-making and product development. These factors are undeniably critical for success when doing business in Dubai. All things considered, the combination of local and international talent undeniably enriches the workplace and ultimately sets them up for long-term success in the booming economy.

A focus on upskilling local talent

Meeting government requirements is important, but I also believe that fostering a diverse workforce creates a vibrant environment. A melting pot of backgrounds brings unique professional experiences that each individual can contribute.

The PwC Emiratisation Survey outlines the significance of this approach. Conducted in partnership with the Ministry of Human Resources & Emiratisation (MoHRE), the survey highlights the growing interest of young Emiratis in private-sector opportunities. The findings indicate that financial incentives, professional development programs, and career growth prospects are key factors in attracting Emirati professionals to the private sector.

Towards the collective goal

The UAE’s workforce development strategy emphasises how crucial it is to create an inclusive business atmosphere where expats and Emiratis can contribute to long-term business progress. Firms of all sizes and across industries that employ this combination of approaches will be better equipped to innovate, handle the intricacies of the market, and prosper in a setting that is becoming increasingly competitive.