UAE minister discusses Nafis plan as certain corporations misuse it

The Minister of Human Resources and Emiratisation of the United Arab Emirates has highlighted how businesses can benefit from the Nafis scheme, a federal program to boost the competitiveness of Emiratis and enable them to fill skilled employment in the private sector of the UAE.

Dr. Abdulrahman Al Awar was responding to a query posed by Khaleej Times when it was discovered that certain companies had abused the scheme’s benefits.

Dr. Al Awar issued a warning last month when it was discovered that enterprises were decreasing the salaries of Emirati job applicants. Apparently, these companies informed the Emirati applicants that they would be paid less because the Nafis program would supplement their salaries anyway.

In a separate incident, the Ministry of Human Resources and Emiratisation (MoHRE) took administrative action against an Emirati employer who appointed 43 family members in order to exaggerate Emiratisation statistics and benefit from the Nafis scheme.

Dr. Al Awar added that the Nafis program offers a variety of financial incentives to increase employment prospects for both young and experienced Emiratis in the private sector. In the next five years, the UAE intends to expand the number of Emirati beneficiaries from 75,000 to 170,000.

However, falsifying Emiratisation numbers in order to receive Nafis payments is punishable by fines ranging from Dh20,000 to Dh100,000 each fictitious Emirati worker.

Companies having 50 or more employees in the UAE are required to increase their Emiratisation rate by 2% of all skilled employment annually. From January 2023, every unemployed Emirati will be subject to a monthly fine of Dh6,000. This amounts to 72,000 dirhams every year.

The minister stated how the Nafis programme presents a “unique opportunity” for private sector enterprises, including the banking, financial, and insurance sectors, as well as free-zones, to take advantage of incentives “that integrate national talent into the private sector.”

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“This provides the private sector with additional flexibility and expansion options,” he said.

On the Nafis portal, private sector organizations can register, create an account, and post job openings and training opportunities for Emirati job seekers.

The procedure will assist them in attracting, training, and retaining national talent while taking use of Nafis’ support and the MoHRE’s incentives and privileges.

The minister stated that Emiratis can be hired through any verifiable and trustworthy channel.

Given the extensive database of Emirati job searchers registered on the Nafis network, Dr. Al Awar suggests posting job openings on this platform. On the other hand, utilizing Nafis to engage Emirati talent expedites the approval processes for benefits because the platform is electronically linked with other agencies in the UAE, such as the Federal Authority For Identity, Citizenship, Customs and Port Security, and others.

This electronic interface governs the distribution of help provided by the Nafis program to Emiratis working in the private sector and those enrolling in training programs at private enterprises.

Nafis provides Emiratis in the private sector with a variety of incentives. It comprises numerous measures, such as a five-year pension program funded by the government.

“The government bears 100 percent of the pension fund contributions on behalf of employers, with pension fund contributions for various categories of nationalities employed in the private sector decreasing gradually over the next four years.”

“There is also the unemployment compensation, which gives temporary financial assistance to UAE nationals who lose their jobs in the private sector due to unforeseen circumstances,” the minister explained.

During the one-year on-the-job training term, the Nafis program provides Emiratis with a monthly stipend of up to Dh8,000.