Major change in Emiratisation rules; covers smaller private companies

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The UAE government has announced a major change to the country’s Emiratisation drive. As per the Ministry of Human Resources and Emiratisation (MoHRE), private companies with 20 to 49 employees are now included in the government’s Emiratisation drive.

The announcement was made on Tuesday by MoHRE.

The cabinet resolution will apply to private companies operating in 14 economic sectors including real estate, education, construction, and health care. They will be required to hire at least one UAE citizen in 2024 and another in 2025.

In implementation of a UAE Cabinet Resolution, the Ministry announces the expansion of the private sector establishments’ pool, subject to Emiratisation targets, to include companies and individual establishments with a workforce ranging from 20 to 49 employees in specific… pic.twitter.com/xDZfILPd7M

— وزارة الموارد البشرية والتوطين (@MOHRE_UAE) July 11, 2023

Previously, only companies with 50 or more employees needed to meet the targets on hiring UAE citizens. Earlier this year, the government said companies must increase their proportion of Emirati workers by one per cent every six months.

Emiratisation drive achieves results

MoHRE reported that as many as 79,000 Emiratis are working in the private sector after the end of the semi-annual deadline for companies with 50 employees or more to achieve a one per cent Emiratisation in skilled jobs.

Non-compliance with Emiratisation targets to incur penalties

A yearly financial contribution of Dhs96,000 will be imposed from January 2025 on establishments that do not comply with the decision in 2024, while non-compliant establishments in 2025 will face a Dhs108,000 fine in January 2026.

Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, said, “Expanding the pool of establishments subject to Emiratisation targets is based on a study of the economic sectors in the UAE and the business activities and nature of work of companies with 20 to 49 employees, which indicated the rapid growth this segment of establishments is experiencing and its ability to provide additional jobs and a suitable work environment.”

He added, “These conditions will attract UAE citizens to work at these establishments, providing a strong boost to Emiratisation endeavours and enhancing the private sector’s contribution to this national initiative, which has achieved remarkable results with the support and guidance of our wise leadership and the close supervision of Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Minister of the Presidential Court and Chairman of the Board of Directors of the Emirati Talent Competitiveness Council.

“We are confident that expanding the establishments targeted by Emiratisation targets will have a positive impact and bring benefits for both our citizens and the establishments themselves, where the latter will be able to benefit from the support of the Nafis programme.”