The Ministry of Human Resources and Emiratisation (MoHRE) is urging private companies must hire Emiratis who employing 20 to 49 workers by the end of this year. The Ministry advises businesses not to wait until the grace period ends in December 2024 to meet these requirements.
This call to action follows the UAE Cabinet’s recent decision to expand Emiratisation targets to include more companies across 14 key economic sectors. In addition to meeting the 2024 requirement, businesses must also hire one more Emirati by 2025.
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This decision impacts over 12,000 companies operating in growing sectors such as:
- Information and communication
- Finance and insurance
- Real estate
- Professional, scientific, and technological activities
- Administrative and support services
- Education
- Health and social work
- Arts and entertainment
- Mining and quarrying
- Manufacturing
- Construction
- Wholesale and retail trade
- Transportation and warehousing
- Accommodation and hospitality
These sectors are experiencing rapid growth, making them ideal environments to provide jobs and a supportive workplace for Emirati citizens.
Financial Penalties for Non-Compliance
Companies that fail to meet their 2024 Emiratisation targets will face financial penalties of AED 96,000, to be collected starting in January 2025. Failure to meet the 2025 targets will result in an increased penalty of AED 108,000, to be collected from January 2026.
Support for Emiratisation
The Ministry emphasized that companies must retain any Emirati employees hired before January 1, 2024, ensure they are registered in the UAE’s pension and social security systems, and process their monthly wages through the Wage Protection System (WPS).
To assist companies in meeting these requirements, MoHRE encourages them to take advantage of the Nafis programme, which offers access to a wide pool of qualified Emiratis. By registering job vacancies on the Nafis platform, companies can not only meet their Emiratisation targets but also boost their competitiveness. Firms that meet these goals are given priority on the government procurement platform.
MoHRE has committed to providing ongoing support, including workshops to raise awareness about hiring UAE citizens, the benefits of Emiratisation policies, and how companies can ensure compliance.
Penalties for Fake Emiratisation
MoHRE warned companies against engaging in ‘Fake Emiratisation’ practices, which will result in strict financial penalties and administrative sanctions. The Ministry is closely monitoring compliance and taking steps to ensure that the Emiratisation process is genuine and beneficial for both employees and employers.
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The expansion of Emiratisation requirements for companies with 20 to 49 workers runs in parallel with the existing rules for companies employing 50 or more workers, who must achieve a 2% annual increase in skilled jobs, leading to a 10% overall growth by the end of 2026.
Final Thoughts
By pushing forward with Private Companies Must Hire Emiratis initiatives, the UAE is striving to create more opportunities for Emirati citizens across various sectors, while ensuring businesses contribute to the country’s long-term economic growth.
