The Emirati workforce in the insurance industry will be increased to more than 17% of the total manpower in the industry by 2020, HE Sultan Saeed Al Mansouri, Minister of Economy, told the Federal National Council (FNC).
He said that 883 Emiratis are currently employed in the sector, representing roughly 11% of the sector’s workforce, reported Gulf News.
He expects the proportion to grow to 12% of the industry workforce, by next year. By 2020, the government plans to increase the Emirati workforce in the insurance industry to more than 17%, mostly in senior management.
Dr Saeed Abdullah Al Mutawa, a FNC member from Sharjah, had criticised the insurance sector for not supporting the government’s Emiratisation plan and blamed the lack of government intervention. He asked Mr Al Mansouri in the latter’s capacity as Chairman of the Insurance Authority to obtain reasons why more Emiratis are not being employed in the insurance sector and to draw up a strategy to tackle the issue.
Dr Al Mutawa said that with investments of insurance companies totalling AED40 billion (US$10.9 billion) last year, it is unacceptable that only 8% of more than 10,000 employees in the sector are Emiratis. He also raised the issue of fake Emiratisation, where citizens are employed in low-level management, or on paper only, to allow companies to meet quotas set by the government.
“The target for Emiratisation in the insurance industry was 15% in 2003, to be increased by 5% on a yearly basis. Now, after more than 12 years, Emiratis are no more than 8%,” Dr Al Mutawa said.
The preference for public-sector jobs among Emiratis and a lack of awareness about long-term prospects in the insurance sector are making it difficult for UAE insurers to attract local candidates in enough numbers, industry sources said.
The UAE government is keen to attract more of its citizens to the private sector to diversify the economy and ease pressure on state finances.
AED1 = US$0.27