YOUSEF AL BUSTANJI (ABU DHABI)
Licensed financial institutions in the UAE exceeded their targets for compliance with the Emiratisation Law by 145% in 2023. They added 2,720 Emiratis to their staff, surpassing the target of 1,875 citizens. This increase raised the Emiratisation rate in important jobs to 31%, up by 8%, according to the annual report recently issued by the Central Bank of the UAE.
However, the report also noted that by the end of 2023, financial penalties were imposed on 13 banks, 32 insurance companies, 30 insurance-related professions and companies, nine exchange companies, and one finance company for failing to comply with the Emiratisation Law during the past year.
The Central Bank enhanced the overall efficiency and effectiveness of the Emiratisation process in licensed financial institutions by closely monitoring key indicators and addressing shortcomings. The Ithraa programme was particularly successful, helping appoint Emiratis to important positions supported by a specialised training plan. As a result, the Emiratisation rate in executive committee positions (direct functional reporting to the CEO or General Manager) reached 21%, a 20% year-on-year increase. Emirati representation in important positions in the insurance sector also rose to 23%, a 26% year-on-year increase.
The Central Bank organised several Emiratisation meetings with senior human resources officials, Emiratisation managers, and compliance managers in licensed financial institutions. These meetings provided personalised guidance and advice, focusing on the Emiratisation strategy, future plans, and the support required from the Central Bank to achieve the set goals.
By the end of 2023, Central Bank data showed 61 banks operating in the UAE, including 23 local banks and 38 foreign banks, 60 insurance companies (33 local and 27 foreign), 17 financing companies, and 77 exchange companies. Notably, the total assets of the UAE banking sector exceeded Dh4.25 trillion by the end of the first quarter of 2024, cementing its position as the largest banking sector in the Middle East and North Africa.