The United Arab Emirates has announced a significant recalibration of its Emiratisation strategy, including a reduction in monthly salary top-ups for Emiratis working in the private sector, as the country moves towards a “performance-driven culture” and reduced reliance on state subsidies.
The changes, introduced by the Emirati Talent Competitiveness Council (ETCC), also known as Nafis, will take effect from September and mark a new phase in the country’s long-term workforce localisation agenda. The programme, launched in 2021, was originally designed to ensure Emiratis make up 10% of the private sector workforce by 2026.
Shift from subsidies to performance
Under the revised framework, monthly government salary top-ups for Emiratis in private companies will be reduced and gradually aligned with qualifications and income brackets. Officials said the restructuring is intended to move away from long-term dependency on financial incentives and instead prioritise career progression, skills development, and workplace contribution.
“The private sector is based on performance. The more individuals contribute, the more they grow,” said Ghannam Al Mazrouei, Secretary General of the Emirati Talent Competitiveness Council. “Nafis is not a social support programme. It is designed to equip Emiratis with the skills needed to succeed.”
He added that the private sector remains “the backbone of any economy” and stressed the importance of knowledge transfer between Emirati employees and expatriate professionals.
New structure of salary support
Under the updated policy, monthly top-ups will be capped based on education level and employment status, with reductions phased in gradually for existing employees over a three-year period. New entrants from September will immediately fall under the revised structure.
For Emiratis working in free zones, support will also be tapered over time, beginning with full assistance for six months, followed by a staged reduction over the next year.
Officials said the transition has been deliberately designed to allow employees to adjust financially while encouraging upward mobility within private sector roles.
Expanded support for families and working mothers
While overall subsidies are being reduced, the government is simultaneously expanding targeted support for Emirati families.
A new scheme will provide additional salary assistance for Emirati mothers employed in the private sector and for wives of Emirati citizens working in private companies. Eligible beneficiaries will receive up to Dh3,000 per month, depending on income and qualifications.
Authorities have also removed restrictions on child allowance limits, extending support beyond the previous cap of four children, with more than 38,000 children already covered under the programme.
Officials said these measures are intended to strengthen workforce participation among Emirati women while reinforcing family stability.
Broader Emiratisation push
The reforms come as the UAE accelerates its nationalisation strategy under Nafis, which has already helped increase Emirati participation in private sector roles to more than 176,000 employees.
The initiative, overseen at the highest levels of government, including Sheikh Mansour bin Zayed Al Nahyan, who recently chaired discussions on its long-term expansion, is now being extended to 2040. The next phase will shift focus from numerical hiring targets to influence, leadership, and decision-making roles for Emiratis across key industries.
Employers with 50 or more staff are currently required to increase Emirati representation by 1% every six months, a requirement that has contributed to a steady rise in local participation in the private workforce.
Building a competitive national workforce
The updated strategy reflects a broader economic transition as the UAE positions itself for a more knowledge-based, innovation-led economy. Priority sectors include finance, artificial intelligence, healthcare, education, and real estate.
Officials say the emphasis is now firmly on “quality over quantity,” with a focus on preparing Emiratis for leadership roles rather than entry-level placements supported by long-term subsidies.
As Ghannam Al Mazrouei noted, the aim is not only to increase participation, but to ensure Emiratis are “ready to take on critical roles across key sectors,” shaping the country’s next phase of economic development.