UAE's Private Firms Buck Up Hiring, Employ 11% More Local Talent in Q1 2023 

The United Arab Emirates (UAE) has been one of the most attractive destinations for businesses looking to expand their operations globally. The UAE government's efforts to diversify the economy and attract foreign investment have led to an increase in employment opportunities for both locals and expatriates. In the first quarter of 2023, private firms in the UAE hired 11% more local talent than in the same period last year. This article will explore the reasons behind this increase, the benefits of hiring local talent, and the challenges that companies face in doing so.

Reasons for Increase in Hiring Local Talent

The UAE government has been taking measures to encourage private firms to hire more locals. One such measure is the introduction of the Emiratisation program, which aims to increase the employment of UAE nationals in the private sector. The program provides incentives for companies that hire and train local talent. In addition, the government has implemented regulations that require companies to hire a certain percentage of locals in certain sectors, such as banking and insurance.

Another reason for the increase in hiring local talent is the COVID-19 pandemic. The pandemic has led to a decrease in the number of expatriates working in the UAE, as many have returned to their home countries. Private firms have therefore had to rely more on local talent to fill the gap.

Benefits of Hiring Local Talent

Hiring local talent has several benefits for companies operating in the UAE. Firstly, locals have a better understanding of the local culture and market, which can be valuable in industries such as retail and hospitality. Secondly, hiring locals can help companies to improve their image in the community and build stronger relationships with stakeholders. Finally, companies that hire locals may be eligible for certain tax incentives and other benefits provided by the government.

Challenges in Hiring Local Talent

While there are many benefits to hiring local talent, there are also several challenges that companies face. One of the biggest challenges is the shortage of skilled workers in certain sectors. Companies may need to invest in training programs to develop the necessary skills among local talent. In addition, there may be cultural and language barriers that need to be overcome when working with local employees.

Another challenge is the cost of hiring local talent. In some cases, locals may require higher salaries and benefits than expatriates, which can put a strain on a company's budget. Companies may also face competition from other firms looking to hire local talent, which can drive up salaries and make it more difficult to attract and retain employees.

The increase in hiring local talent by private firms in the UAE is a positive development for both the companies and the local community. By investing in the development of local talent, companies can improve their operations, build stronger relationships with stakeholders, and contribute to the country's economic growth. However, there are also challenges that need to be addressed, such as the shortage of skilled workers and the cost of hiring local talent. Companies that are able to overcome these challenges are likely to be more successful in the long run.