UAE firms must employ more Emiratis by July 1 or face fines

Private sector firms in the UAE with more than 50 employees have clear over the number of Emiratis they employ.

By the end of 2022 UAE firms were instructed to make sure a minimum of 2% of employees were UAE nationals.

UAE Emiratisation targets.

This figure must increase by a further 2% every year until reaching 10% in 2026.

However, a UAE Cabinet resolution amended the rule earlier this year. While annual targets remain the same, firms must achieve a mid-year target of a 1% increase of every six months.

The MoHRE has sent a reminder, informing firms they have less than four months to achieve the new targets or face fines.

A message by the MoHRE Twitter account said: “A UAE Cabinet resolution on modifying the mechanism for achieving Emiratisation targets at private sector companies with 50 employees or more came into force.”

It went on to say: “The overall mechanism for achieving the targeted Emiratisation rates has not changed; it became semi-annual instead of annual. Companies with 50 employees or more are required to achieve an increase of 1% of skilled jobs every 6 months and reach a growth rate of 2% by the end of the year.       

“The annual 2% Emiratisation growth for skilled jobs in 2022 for private sector companies and the 10% goal for 2026 have not been changed in this resolution.         

“The resolution aims to accelerate achieving Emiratisation targets and employing UAE nationals in the private sector throughout the year.

The fines, the MoHRE says, have not been modified.

Currently, firms that fail to meet the targets will be fined at a rate of AED6,000 a month or AED72,000 a year. The fine will be paid in a single instalment.

The value of the monthly fines imposed on private sector entities will increase progressively at a rate of AED1,000 annually until the year 2026.

The MoHRE statement added: “The resolution plays a significant role in enhancing the workforce planning without overlapping with the Emiratisation targets as there will be no new or additional commitments on companies.             

“Financial contributions will start to be applied in July 2023, as well as the remaining contributions from 2022.”

The Ministry provides a package of incentives for establishments that make qualitative achievements in training and employing Emiratis in line with the objectives of the ‘Nafis’ programme, including joining the Emiratisation Partners Club, which raises the establishment’s classification to the first category in the Ministry’s system – which will entitle them to up to 80 percent discounts for availing the Ministry’s services.