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IMPACT – HIGH
What is the change? The United Arab Emirates has introduced a new job-classification system that lists occupations that foreign nationals are eligible to fill.
What does the change mean? Mainland employers will need to consult the list for appropriate job titles and descriptions and make sure that foreign nationals have the relevant degree certificates matching the jobs in order to qualify for work permits.
Background: The new scheme simplifies the previous scheme by reducing the number of jobs to fewer than 800 job titles classified into nine categories with a unique classification code. The previous scheme contained more than 3,000 job titles.
Analysis & Comments: The new job-classification system is one of the steps the UAE is taking toward greater Emiratisation and encouraging companies to hire local workers. Employers should anticipate that further steps are likely to follow from the job-title streamlining—for example, the government may move to restrict some job titles to Emirati nationals exclusively. Emiratisation measures that have always been strictly applied to state-owned companies are gradually being introduced for mainland-incorporation companies. While the UAE has announced that it will allow companies greater freedom by permitting 100-percent foreign-owned companies to incorporate on the mainland, the government will be looking to expand Emiratisation policies to cover foreign-owned mainland companies. Free-zone companies are not subject to Emiratisation initiatives and are unlikely to be for the foreseeable future.
Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.
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