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Emiratisation Rules for Private Sector Companies in the UAE

Emiratisation in Private Sector

The UAE has introduced Emiratisation rules for private sector companies, with June 30 set as the deadline for these companies to achieve their 1% half-yearly Emiratisation target.

The UAE Ministry of Human Resources and Emiratisation (MoHRE) has announced the deadline for private sector companies with 50 employees or more to achieve their Emiratisation targets, set at 1 percent of skilled jobs.

This is in line with the amendment of some provisions of Cabinet Resolution No. (19/5m) of 2022, which is based on the mechanism of achieving yearly Emiratisation increase targets, a statement by the MoHRE said.

Private sector companies must achieve 1 percent Emiratisation targets before the end of June, and a yearly 2 percent target increase target before the end of the year.

“The private sector is an active partner in enhancing the attractiveness and competitiveness of the job market, in line with the vision to make the UAE a dynamic economic hub that is among the most sustainable and fastest growing in the world,” Aisha Belharfia, Acting Undersecretary for Emiratisation Affairs and Assistant Undersecretary for Labour Affairs said.

She also highlighted the importance of companies achieving the half-yearly Emiratisation target increase to avoid fines, and called on the private sector companies to benefit from the support provided by Nafis to hire Emirati talents in skilled jobs, the statement said.

She added: “The success of Emiratisation efforts depends on the expansion of the vacancies open to Emiratis in the private sector, and building a secure network that supports their career paths. The Ministry of Human Resources and Emiratisation supports exceptional companies that train and employ Emiratis in line with Nafis’ objectives.”

Belharfia said Emiratis also have the chance to join the Tawteen Partners Club, “which boosts the ranking of the company to Category 1, providing them with a discount of up to 80 percent on the Ministry’s fees.”

UAE Emiratisation fines for non-compliance

Come July 2023, the MoHRE will fine non-compliant companies for achieving the half-yearly target as well as the 2022 targets.

UAE announces major punishments for fake Emiratisation

For every Emirati not hired by targeted private sector companies, a penalty of AED42,000 will be applied, at a rate of AED7,000 per month for 2023, in line with the Cabinet Decision.

The fines will increase by AED1,000 yearly until 2026, the statement said.

“We look forward to the results of the new mechanism of achieving Emiratisation targets, which guarantees continuous employment of Emiratis year-round and maintains their retention in the private sector. It also sustains job offerings and vacancies on Nafis’ platform throughout the year, which aligns with the pace of jobseekers’ registrations,” Belharfia added.

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