Emiratisation Newsletter

In the United Arab Emirates, the Emirati Human Resources Competitiveness Council, known as 'Nafis,' plays a pivotal role in implementing national initiatives with the primary goal of boosting Emiratisation within the private sector.

At the primally of Nafis' mission is a visionary goal to integrate 75,000 Emirati citizens into the private sector over the coming five years. This ambition is realized through a myriad of initiatives designed to empower and enhance the capabilities of Emirati professionals, while also acting as a catalyst for private companies to actively seek out and engage Emirati talent.

Key Changes

Emiratisation

Emiratisation, also known as Emiratization, is a government-led effort in the United Arab Emirates to enhance the meaningful and effective employment of its citizens within both the public and private sectors.

Although the Emiratisation program has been in operation for over a decade and has yielded notable progress in the public sector, the private sector still lags behind, with citizens comprising only 0.34% of the private sector workforce.

The new changes are aimed at increasing the number of citizens in the private sector.

Emiratisation Targets in the Private Sector, Currently Rules and Updates

At present, enterprises under the purview of the Ministry of Human Resources and Emiratization (“MoHRE”) with a workforce of 50 employees or more are mandated to incrementally enhance the proportion of UAE nationals within their skilled workforce by 2% annually.

As of January 2024, private sector companies with a workforce of 20 to 49 workers will be required to hire at least one UAE citizen and as of January 2025, they would be required to hire at least two Emirati citizens.

This alteration represents notable changes from the previous directive, which exclusively applied to companies boasting 50 or more employees.

Companies operating in the following activities must comply with this obligation:

1- Information and Communications

2- Financial and Insurance Activities

3- Real Estate Activities

4- Professional, Scientific, and Technical Activities

5- Administrative and Support Services

6- Education

7- Healthcare and Social Work Activities

8- Arts and Entertainment

9- Mining and Quarrying Industry

10- Manufacturing

11- Construction

12- Wholesale and Retail Trade

13- Transportation and Warehousing

14- Hospitality Services

The listed establishments are required to increase their number of national employees. To achieve this objective, at least one national employee must be employed in 2024 and another in 2025.

This strategic move seeks to invigorate Emiratisation and foster the participation of UAE nationals across a broad spectrum of industries, ultimately contributing to the nation's economic vitality and the growth of its national workforce.

Companies are Obliged to Pay a Financial Contribution

As of January 2024, companies employing 20 to 49 workers that do not hire at least one Emirati will be required to make a financial contribution of AED 96,000 to the government. This contribution will increase to AED 108,000 for companies that have not employed two Emiratis by 2025.

As of January 2025, establishments will be required to pay a contribution of if no citizen employee is appointed in 2024.

The prescribed contribution may be paid in monthly installments as of January 2025.

As of January 2026, establishments will be required to pay a contribution of if no citizen employee is appointed in 2025.

The prescribed contribution may be paid in monthly installments as of January 2026.

After the end of the targeted year, if the establishment reduces the number of its national employees, it shall be required to appoint an alternative national within a maximum period of two months or to pay the contributions.

The Others Obligations

Companies are obligated to comply to specific rules when fulfill their Emiratisation requirements. Employers must provide Emiratis with a suitable workplace, necessary tools, and minimum on-the-job training to enable them to perform their duties. Additionally, when hiring Emiratis, they must ensure that job advertisements are accurate and include the specified headline as listed in the regulations.

When advertising for Emiratisation jobs, companies must not:

— post unskilled jobs or misleading advertisements which do not represent the available and genuine job opportunities for them

— refer to the government’s Emiratisation policies and their benefits unless they have obtained a prior permission from MoHRE

— provide information on the government incentives and support programmes offered to nationals in the private sector.

They must also comply with certain obligations within the labor relationship.