UAE Government Prioritizes Emiratisation in Procurement Contracts to Boost Private Sector Participation

The Ministry of Human Resources and Emiratisation (Mohre) and the Ministry of Finance (MOF) have announced a new initiative to prioritize companies meeting Emiratisation targets in government procurement contracts. The move is part of an effort to boost the Emiratisation drive in the private sector. Private companies with 50 or more employees are required to add two percent Emiratis to their workforce annually until 2026, with the target split into 1 percent for the first and second halves of the year.

Younis Al Khoori, undersecretary of the MOF, stated that granting priority to companies committed to Emiratisation is a form of support and incentive. This initiative complements other benefits for compliant companies, including enrollment in the Emiratisation Partners Club, Nafis benefits like financial support, a database of qualified UAE nationals for the private sector, and a pension contribution support program.

The Emiratisation scheme is rigorously enforced, with nearly 900 companies caught violating rules in a six-month period, leading to fines and referrals to public prosecution. Ayesha Belharfia, undersecretary for Emiratisation affairs at Mohre, emphasized the shared vision and responsibility among government entities to support Emiratisation.

The Ministry of Finance has recently launched a procurement platform as part of its digital transformation strategy, allowing suppliers to register and offer services to federal government entities. About 14,000 suppliers have registered, enabling participation in tenders, online auctions, and tracking purchase orders and invoices. The platform aims to enhance the involvement of small and medium-sized enterprises (SMEs) in tenders by offering special advantages.

This new benefit reflects the commitment of government entities to advance the Emiratisation process and increase the participation of UAE nationals in the labor market, contributing to the national economy. The initiative aligns with the broader goal of promoting active participation in the labor market and fostering the economic contribution of UAE nationals.