College of Business Administration Department of Management

Human Resource Management

Spring Semester 2024-2025

Table of Contents

1Introduction

2Methodology

3Company Background

4Literature Review

4.1Emiratization

4.2Emiratization challenges

4.3Human Resource Management Strategies for Emiratisation

4.4Possible solutions for overcoming barriers of Emiratisation

4.5Learned Opinion and Endorsement of Solutions

4.6Closure

5Results and Discussion

6Recommendations:

7Interview:

8Conclusion

9References

10Appendix

1. Introduction

Human Resource management has a significant impact in shaping organizations workforce strategies. Emiratization, a government-driven program designed to increase the employment of Emirati nationals, is one of the biggest HR concerns in the United Arab Emirates. This strategy aims to balance the labor market and reduce the reliance on foreign workers. However, many private sectors find it difficult to implement the strategy effectively. That is because of problems like skill gaps, cultural adaption, pay expectations, and employee retention.

This project explores how Emiratization impacts the HRM practices, whit an emphasis on how businesses modify their recruitment and retention strategies as well as their training programs to meet nationalization objectives. Through the analysis of practical cases, this research seeks to offer important insights on how HR professionals may successfully balance Emiratization regulations with work diversity. Understanding these dynamics is essential for organizations to comply with government regulations while still maintaining productivity and competitiveness.

2. Methodology

This study uses qualitative methodology that combines primary data from an interview with the dean of the industrial engineering department in the university of Sharjah with secondary research from academic sources. By integrating both theoretical and practical perspectives, this study provides a comprehensive understanding of Emiratization impacts on HRM. It also outlines suggestions on how businesses might enhance their human resources plans while incorporating Emirati workers into the private sector.

The literature review offers a theoretical foundation by looking at previous studies, governmental documents, and case studies related to Emiratization. It covers the key challenges faced by private companies, the expectations of the Emirati workers, and the HR strategies used to attract and retain local talents. To gain real-world insights, a structured interview was conducted with a department representative that is trying to implement Emiratization policies. The conversation included topics such as development initiatives, recruitment difficulties, and how the team balances between diversity and Emiratization. The responses were analyzed to get a deeper understanding on Emiratization in practice.

3. Company Background

Undergraduate and graduate programs are run at the University of Sharjah's Department of Industrial Engineering and Engineering Management. Among these programs are the Bachelor of Science in Industrial Engineering and Engineering Management, the Master of Science in Engineering Management, and the Doctor of Philosophy in Engineering Management (Industrial Engineering and Engineering Management, 2020). The department undertakes research into a variety of topics including, but not limited to, supply chain management, quality management, maintenance management, project management, applied optimization, ergonomics, industrial safety, manufacturing systems, and healthcare (Industrial Engineering and Engineering Management, 2020).

4. Literature Review

4.1. Emiratization

With the potential of a critical yet complex policy, Emiratisation aims to increase the participation of UAE nationals in the workforce in the private sector, which is heavily expatriate-dominated (Randeree, 2009). Private sector companies have initiated strategies for the human resource management (HRM) of Emirati talent within their companies in recruitment, training, and retention. Despite these advances, the practice of Emiratisation still suffers some setbacks, most of which are attitudinal, and are characterized by such features as skills mismatch, cultural adaptation, and income expectations discrepancies between the two sectors (Aljanahi, 2017).

4.2. Emiratization challenges

The first major challenge of Emiratization is the mismatch of skills that Emirati graduates bring to the job market with what they are required to meet or what private employers will use (Al-Ali, 2008). The Emirati has job seekers missing many of the skills and experience requirements, especially in those industries that demand high digital literacy and good English proficiency, telecommunications, and finance. The skills gap complicates the recruitment and retention of these job seekers, thereby warranting stronger HRD interventions such as specialized training programs and partnerships with educational institutions.

In addition, there is another challenge that requires discussing, namely, Emirati preference for public sector jobs, which offer better pay, better benefits, and shorter working hours (Rees, Mamman, and Braik, 2007). Indeed, the very features that make the compensation packages unattractive for private sector firms also make it very difficult for them to attract local talent. Additionally, the cultural differences in workplace environments, where private sector jobs demand higher performance and longer hours, further dissuade Emiratis from joining the private workforce (Al-Ali, 2006).

4.3. Human Resource Management Strategies for Emiratisation

There is also a number of structured HRM strategies for Emiratization among companies in UAE; Emirates NBD, for instance, is one of the leading banks in UAE. This bank has established a National Leadership Program that aims at developing leadership capabilities among Emiratis. The bank also invests in continuous learning, mentorship initiatives, and career progression plans to enhance employability and retention (Randeree, 2009).

In line with this, the integrated Emiratisation at Majid Al Futtaim, a major private sector entity involved in the areas of retail, real estate, and entertainment, in its HRM system is organized. The issues they face include resistance from both employers and Emirati job-seekers-employers thinking expatriates to be more experienced and cost-effective, while the Emiratis think of private-sector jobs as less attractive to themselves owing to salary differences and career progression concerns. In order to remedy this, Majid Al Futtaim has successfully conducted targeted recruitment campaigns, skills development programs, and leadership training initiatives for Emiratis in the emirate (Aljanahi, 2017).

Etisalat has found itself too primarily in mismatched skills, especially in technical posts which demand advanced digital skills and English proficiency. It has gone into comprehensive training and development programs mainly aimed at digital literacy and technical skills to fill the gap between the needs of Emirati graduates and the industry demands (Rees, Mamman & Braik, 2007).

Case Study: Emaar Properties and Emiratisation

Emaar Properties is a top developer in UAE and would make an interesting case study on Emiratisation in the private sector because it is being adversely affected by factors such as the nature of real estate jobs-they are tough and long, competitive, hence the opposite of the public sector stability with its attendant benefits. In response to such issues, Emaar has championed training and development programs that align with the theories of human capital in employing education and skills improvement (Al-Ali, 2006) as a potential solution for improved employability. Career development initiatives have been strengthened by the company in addition to workplace integration initiatives to create an enabling environment for the Emiratis.

4.4. Possible solutions for overcoming barriers of Emiratisation

To some extent, the above issues have received attention from various scholars who have suggested a number of HRM strategies to respond to the Emiratisation phenomenon:

Skill Development and Training Programs: To develop curricula to meet the demands of industry, private firms should collaborate with education institutions (Al-Ali, 2008).

• Competitive Compensation Packages: More competitive salaries and benefits than the public sector to attract Emiratis (Al Kaabi, 2016).
• Workplace Integration Initiatives: Mentoring and networking programs to help Emiratis assimilate into a private sector setting (Randeree, 2009).
• Flexible Working Arrangements: Hybrid work models and reduced working hours are attractive factors to encourage more Emiratis towards private sector employment (Al Kaabi, 2016).

4.5. Learned Opinion and Endorsement of Solutions

The literature seems overwhelmingly in favor of the idea that successful Emiratisation is achieved through a multidimensional approach: HRM reform, government incentive, and private sector adaptability. The traditional barriers of salary and job stability would remain significant even as career development programs, leadership training, and workplace inclusivity strategies are likely to be designed to make the private sector attractive to Emiratis. Moreover, partnerships between educational institutions and companies can ensure that Emirati graduates acquire the skills necessary to meet market demands (Aljanahi, 2017).

Among the discussed options, we continue endorsing an implementation of both enhanced skills training at the workplace and competitive incentives as approaches that meet HRM best practices and which are already considered good company practice by Emirates NBD and Emaar Properties. Strengthening Emiratisation policies will require continuous adjustments to HR strategies, thus keeping pace with changes in the workforce expectations and the economic context of the UAE.

4.6. Closure

The issue remains even after all the effort put in by the government to push Emiratisation along the private sector path, as the elephant has left a few footprints on the way due to skills mismatches, salary differences, and cultural differences. However, case studies showing Emirates NBD, Majid Al Futtaim, Etisalat, and Emaar Properties have begun to demonstrate how well-targeted HRM strategies can help small-wage companies bridge these skills gaps. If you emphasize skills development, promote careers, and integrate Emiratis into the workplace, you are very likely able to convince the private sector that it is possible to hire Emiratis competitively without compromising on efficiency.

5. Results and Discussion

From the literature review and interview, the response draws out the main discussion about the Emiratisation in the private sector in the UAE. The challenges and the strategies observed offer a complex scenario of nationalisation of the workforce.

1. Challenges to Emiratisation: Implementations There remains a general difficulty in encouraging Emiratis to move to the private sector. Companies advertise vacancies, but they are often not taken up. This is in accord with Aljanahi, who focuses on skills mismatch and salary expectations and work culture. The interviewee highlighted financial considerations as a paramount consideration, backed by Al Kaabi's focus on remuneration as a key part of competitiveness.
2. Impact of Emiratisation Policy on Recruitment: The interview confirmed that employment policies in Emiratisation influence hiring, preferring qualified Emiratis. Rees, Mamman, and Braik are aware that companies try to balance nationalization and workforce diversity. For instance, the interview revealed that organizations set a benchmark for hiring and ensure that competency is a key selection criterion.
3. Training and Development: Gaps Both sources point to a slow pace of the specialized training of Emiratis. According to the interviewee, further training had been limited to roles primarily technical in nature. This is also aligned with Al-Ali, who noted that upward mobility in their careers represented a key challenge. Emirates NBD and Etisalat complement leadership programs that alleviate skills shortages.
4. Balancing Emiratisation with Workforce Diversity: The interviewee reported that their company still promotes diversity in their strides to meet Emiratisation imperatives. Randeree argues contracting out must not interfere with multicultural arrangements. Majid Al Futtaim strikes a balance between nurturing inclusion and enhancing Emiratisation.
5. Career Growth and Performance Management: The interview endorsed that Emiratisation is incorporated into performance ratings; however, concerns around career progress emerge. Al-Ali found that roadblocks reduce the options Emiratis have. Companies like Emaar Properties support a career development orientation which has relatively constructive implications on retention.
6. Government Support and Financial Incentives: The interview indicated additional government support was required. Al Kaabi argued that organized incentives stimulate the engagement of the private sector. While there are currently policies in place, more change is needed to narrow them to reduce salary disadvantages and trust factors in the workplace.
7. Salary and Other Benefits Adjustments: In agreement with the interview, there have been no changes in salary structures to match with Emiratisation. Aljanahi (2017) believes that it is an enormous reason that Emiratis prefer public sector jobs. Competitive compensation packages are the core of retention.

Although hiring processes detailed above are with regard to value, policies of Emiratisation in Dubai never represented challenges when it came to attracting and retaining Emirati workers. Barriers were said to be salary expectations, the rising of an employee on the ladder over time, as well as workplace culture. Case studies from Emirates NBD, Majid Al Futtaim, and Etisalat reflect how systematic HR initiatives elevated Emiratisation. Future initiatives must focus on training improvements, better salary comparatives, and international inclusiveness for the purpose of matching Emirati job seekers with vacancies in the private sector.

6. Recommendations:

For Emiratization to truly succeed in the private sector, companies need to rethink how they attract, train, and retain Emirati talent. Its not just about filling quotas, its about creating meaningful opportunities that appeal to local candidates. One of the first steps is offering competitive salaries and benefits that reflect whats available in the public sector. Many young Emiratis are drawn to government jobs because of better pay, job security, and work-life balance, so the private sector has to step up if it wants to compete. Another key area is training. Many Emiratis entering the workforce may lack certain technical skills, not because of lack of potential, but because of gaps between whats taught and what the job requires. Thats where companies can make a difference, by investing in targeted training programs, mentorship, and real career paths that help Emiratis grow and feel valued. Building stronger connections with universities can also help bridge the gap. Importantly, Emiratization should work alongside diversity efforts, not against them. A balanced, inclusive workplace that embraces all talents ,while supporting local growth, is the way forward. Finally, more active government support, whether through incentives or clearer policies, would encourage companies to stay committed and make Emiratization a genuine success story.

7. Interview:

The department is made up of 18 faculty members, one of whom is a part-time Emirati lecturer. Regarding the staff, there are five people in total including the admin and technical part, two of whom are Emiratis. The problem is that we do have positions available, and sometimes, for some reason, they do not find them attractive. We offered two Emiratis to have the job, and finally, they accepted the offer but then they were not happy and wanted to change the positions. Possibly the offer was not to their liking. Of course, it does affect. The selection process, in terms of finding the right skills and the right person in the right position, as well as the encouragement of Emiratization as a university strategy is our greatest effort to do so. Ideally, we keep that concept in our head and try to follow our interested graduates, who have done the PhD program. At this point, we have no such a special training program for neither Emiratis nor for other students. This is maybe for technical staff. They sometimes must undergo some training, but it's just routine. In fact, we really take care to pave our way toward the diversification strategy of the university. We are already doing that; we do not have only one nationality. The university is striving for a certain goal, which is not necessarily 100% Emirates. So, that is not next to the rainbow, they (diversity and Emiratization) complement each other. Yes, they do. We attempt to bolster partnerships with Emiratis in the non-academic domains of other institutions thereby steering them on the path of participating more in academia. However, inside the department the collaboration remains unchanged whether it is with Emiratis or people from other nationalities. Maybe financial incentives should be higher for Emiratis, this way they might find the positions more attractive. I believe that they should not forget that the first thing they need to do is the performance. That must be dealt with first. If the companies do not go far beyond the border, they may achieve certain rates of Emiratization while still being inclusive. Being faithful to the outlined strategy will always be the way. Not in our case. The only thing we must add is giving some privileges to Emiratis. In case we have the privilege to pick different qualified individuals, this means that there is no Emirati who meets our requirements, we shall give preference to engage with the Emirati employee. However, we still need to adhere to the minima in respect of the correspondence. We are bound to hire the right people for the students needs, this is always a must, and the rest of the things we include is not negotiable.

8. Conclusion

Emiratization is more than a policy. its a reflection of the UAEs vision for a balanced and inclusive workforce. But turning that vision into reality, especially in the private sector, isnt easy. This project revealed that while theres progress, many challenges still stand in the way. Factors like mismatched skills, limited training, salary expectations, and cultural preferences for public sector roles continue to make it difficult for private companies to attract and keep Emirati employees. However, through interviews and case studies, its also clear that success is possible when companies take intentional steps. Those that invest in people, through better pay, structured development programs, and thoughtful career paths, are seeing better results. Emiratization doesnt have to come at the expense of diversity; the two can and should go hand-in-hand. With ongoing effort, collaboration between government and business, and a genuine focus on people, the private sector can become a more welcoming space for Emiratis, not just to work, but to thrive.

9. References

• Randeree, K. (2009). Strategy, policy and practice in the nationalisation of human capital:'project emiratisation'.Research and Practice in Human Resource Management,17(1), 71-91.

• Aljanahi, M. H. (2017). Challenges to the Emiratisation process: content analysis.Human Resource Development International,20(1), 9-17.

• Rees, C. J., Mamman, A., & Braik, A. B. (2007). Emiratization as a strategic HUMAN RESOURCE MANAGEMENT change initiative: case study evidence from a UAE petroleum company. The International Journal of Human Resource Management, 18(1), 33-53.

• Al-Ali, J. (2008). Structural barriers to Emiratisation: Analysis and policy recommendations (Doctoral dissertation, Victoria University).

• Al-Ali, J. (2006, December). Emiratisation in the local labor force of the UAE: a review of the obstacles and identification of potential strategies. InProceedings of the 20th ANZAM (Australian New Zealand Academy of Management) Conference on Management: Pragmatism, Philosophy, Priorities(pp. 6-9).

• Zeffane, R., & Kemp, L. (2020). Emiratization: Benefits and challenges of strategic and radical change in the United Arab Emirates. InCase studies in work, employment and human resource management(pp. 245-253). Edward Elgar Publishing.

• AI Kaabi, K. S. S. (2016). PRIVATE SECTOR EMIRATIZATION: EVALUATING THE POLICIES AND PRACTICES DESIGNED TO ACHIEVE ABU DHABI'S STRATEGIC HUMAN RESOURCE MANAGEMENT GOAL.

• Industrial Engineering and Engineering Management. (2020). Sharjah.ac.ae. https://www.sharjah.ac.ae/Academics/Eng/Industrial-Engineering-and-Engineering-Management?utm_source=chatgpt.com
• Industrial Engineering and Engineering Management. (2020). Sharjah.ac.ae.https://www.sharjah.ac.ae/en/Academics/Degree/Undergraduate/Industrial-Engineering-and-Engineering-Management?utm_source=chatgpt.com
• Faculty And Staff. (2020). Sharjah.ac.ae. https://www.sharjah.ac.ae/Academics/Eng/Industrial-Engineering-and-Engineering-Management/Faculty-And-Staff?utm_source=chatgpt.com

10. Appendix

Interview:

1. How many employees do you have in your company? How many UAE nationals? and how many employees do you have in the HR department?
   In the department, we have 18 faculty members, one of them is part time emirati lecturer. In terms of staff, admin and technical, we have five all together, with two emeratis.
2. What are the main challenges your organization faces in implementing Emiratization and meeting Emiratization targets?
   The challenges is that we actually do offere positions but foer some reason they dont seam to be appealing for emeratis. We offered positions for two Emiratis who initialy agreed, however they seem to be hesitating and didnt accept them. Maybe the offer wasn't interesting.
3. How do Emiratization policies influence your recruitment and selection strategies?
   It does influence, of course. In terms of selection process, we do our best to get the right skills and the right person, in the right position while also encouraging Emiratization, because this is a strategy of our university. We keep that in mind, and try to watch for our interested graduates from the PhD program.
4. What training or onboarding programs do you have to prepare Emirati employees for their roles?
5. At this point, we don't have any special training for neither Emiratis or others. Its maybe for technical staff. They sometimes have to go through some trainings, but just nothing special.
6. How do you balance Emiratization requirements with maintaining a diverse and inclusive workforce?
   We really try to respect the university strategy in terms of diversification. We're already doing that, we don't have just one nationality. The university is setting a certain target, which is not necessarily the 100% Emirates. So, it's not going against the diversity, they go together.
7. Are Emiratization initiatives aligned with performance evaluation and career progression frameworks in your organization?
   Yes, they are.
8. What strategies have you used to foster collaboration and inclusivity in teams with Emirati and non-Emirati employees?
   We try to push collaboration with Emirates in non academic sectors of other institutions to encourage them to participate more in the academia. But inside the department, it's the same type of collaboration with Emiratis and with non Emirates.
9. What additional support (from the government or from universities) do you think would enhance the success of Emiratization?
   Maybe more financial incentives for Emiratis would help make the make the positions attractive.
10. What advice would you give to other companies balancing Emiratization and diversity?
    I think they need to keep in mind that they need to first of all guarantee performance. That must be on top of things. As long as organizations don't go to extremes, they can reach certain percentages of emartizations while keeping diversity. Respecting the strategy that is set will always be the guide.
11. Have there been any adjustments to your salary and benefits packages to better support the Emiratization program? if yes, what are these adjustments? Not in our case.
12. Have there been any changes to your performance management processes to align with the Emiratization program? If so, what adjustments have been made, and what impact have they had?

The only adjustment is that we need to give some priorities to Emirates. If we have the choice between qualified people and we don't have the right number of Emiratis, we would prefer to engage the Emirati. But other than that, we have to keep a minimum standards in the sense of adequacy. We need to hire the right people for the students needs, that's something we need to always respect.