The UAE Ministry of Human Resources and Emiratisation (MoHRE) has announced that private sector companies can face fines of up to AED500,000 if they avoid Emiratisation targets.
This comes in line with the implementation of UAE Cabinet Resolution No. 44 of 2023 regarding amendment of provisions of the Cabinet Resolution No. 95 of 2022 on violations and administrative penalties related to the initiatives and programmes of the Emirati Talent Competitiveness Council (Nafis), the MoHRE said in a statement on Thursday.
Violations recognised include reduction of number of employees or modification of their classification or any other method to avoid Emiratisation targets.
Violations for UAE private sector companies avoiding Emiratisation
As per the resolution, a AED100,000 fine will be imposed on companies proved to have avoided Emiratisation targets for the first time.
If the violation is found repeated for the second time, a fine of AED300,000 will be imposed, whereas a fine of AED500,000 fine will be imposed if the company is found to have repeated the violation for the third time.
Similar violations after the third time will result in a AED500,000 fine, the MoHRE statement said, adding that “any company found committing the violation will be obligated to achieve the required Emiratisation targets based on its actual status before the circumvention.”
Under the Cabinet resolution regarding Emiratisation targets, private sector companies with 50 employees or more are required to increase the number of its Emirati employees at skilled jobs by 1 percent every six months, in order to achieve a 2 percent Emiratisation by the end of the year.
UAE Emiratisation deadlines
In addition, targeted companies are expected to achieve a 10 percent Emiratisation rate by the end of 2026.
Companies failing to do so will face a AED42,000 financial contribution for each Emirati not appointed according to the semi-annual targets.
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