Expats still occupy the lion’s share of – and the most well-paid – jobs in the UAE financial sector, even if the industry is relatively progressive in its Emiratisation efforts. However, the lack of appetite to recruit within regional banks may have thrown a spanner in the works.

Emiratisation has hit the headlines in the last few weeks, and not always for the right reasons. At the more extreme end of the criticism spectrum are comments from Bahrain’s labour minister Majeed al-Alawi that expats were “a threat to our existence”.

Undoubtedly, the banking sector is still dominated by expats, but it’s also been particularly active in recruiting GCC nationals, according to AbdulMuttalib Al Hashimi, managing director of Next Level Management Consultancy, which focuses on recruiting and developing Emiratis. He estimates that some banks employ 40% locals.

“UAE nationals can add value through their local knowledge and client networks,” he says. “However, the banking sector will always rely on expatriates for product development and more technical roles.”

The likes of National Bank of Abu Dhabi, Lloyds TSB and Deutsche Bank have all upped their efforts to recruit and train more local candidates of late. However, the financial crisis has inevitably hit Emirati recruitment.

“A lot of banks have simply stopped hiring,” says Al Hashimi. “Emiratis may have largely escaped lay offs, but there’s a huge backlog of job-seekers who have been forced to look elsewhere for opportunities.”

According to official estimates, there are some 400,000 unemployed nationals across the six Gulf states. There have also been concerns that the education system is not equipping locals with adequate skills for the workplace.

In the past, due to their relative scarcity, skilled Emiratis working in finance have managed to secure generous packages. However, more lucrative contracts are available working within the public sector.

Subsidies could eventually be offered to private companies in place of quotas to encourage them to hire and retain Emirati staff, according to speakers at the Emiratisation Employer Forum 2010.