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EMPLOYER GUIDE
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EMIRATISATION
Emiratisation is a UAE Government initiative designed to ensure the socioeconomic development of the nation. It presents an opportunity for UAE Nationals to reach their full potential, working alongside international experts and affords international companies an opportunity to integrate talented UAE Nationals within their companies and benefit from local perspectives. It also, importantly, ensures that the Emirati culture and values, which define the nation, will endure and be represented in the modern developing UAE.
The Emiratisation program and its requirements presently apply to all employers falling under the jurisdiction of the Ministry of Human Resource and Emiratisation (MOHRE) (it does not presently apply to employers within freezones).
The program was originally introduced over 10 years ago, however, the introduction, on June 6, 2022, of the Emiratisation Resolution (Ministerial Resolution No.(279) of 2022) by the UAE Federal Government, indicated a desire by the UAE Government to enforce the Emiratisation program within the private sector with specific quotas increasing annually until 2026, and fines for non-compliance.
Introduced on September 12, 2021, as part of the ‘Projects of the 50’, NAFIS (which translates to ‘compete’ in Arabic) is an extensive federal program which encompasses reforms and financial incentives aimed at fostering employment opportunities for both young and seasoned Emiratis within the private sector. The UAE Government will invest USD6.53 billion until 2026, under NAFIS, to ensure 10% of the UAE ‘s private sector jobs are filled by Emiratis (approximately 75,000). The investment will provide support to Emirati candidates and private sector employers (in the form of training and monetary benefits) to ensure the Emiratisation targets are achieved and Emiratisation requirements met.
The Emiratisation requirements may present a challenge for many private sector employers as it remains difficult to attract and retain Emirati talent in the competitive UAE labour market. HR Engine, with our team of Emirati HR professionals, understands and is deeply connected with the pool of UAE national candidates and is best placed to help you recruit, train and retain top talent through our recruitment and consultancy services.
FINES?
Onshore companies with 50 or more employees
Onshore companies with 20-49 employees
Companies with 50 or more employees who do not comply with the Emiratisation requirements will need to pay AED6,000 monthly, starting January 2023, for every UAE National who has not been employed in accordance with the Emiratisation requirements. The fines will increase progressively by AED1,000 each year.
Companies with 20 to 49 workers that fail to employ at least one Emirati in 2024 will face a fine of AED96,000. This fine will increase to AED108,000 for companies that have not employed two Emiratis by 2025.
Speak to our Emiratisation Consultants today to ensure you meet your Emiratisation Requirements now and in the future and avoid fines and penalties.
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In addition to the above, there are also other administrative penalties and fines that may apply in relation to violations of Emiratisation Requirements by employers, varying according to the nature of the violation.
Emiratisation Quota for Small Companies?
14. hospitality services
Speak to our Emiratisation Consultants today to ensure you meet your Emiratisation Requirements now and in the future and avoid fines and penalties.
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Onshore companies with 20-49 employees (specific sectors)
From 1 January 2024, you will need to hire one Emirati National by the end of 2024 and a second Emirati National by the end of 2025.
This Requirement is Applicable to Companies Operating in the Following 14 Sectors
08. arts and entertainment
09. mining and quarrying industry
10. manufacturing
11. construction
12. WHOLESALE AND RETAIL TRADE
13. transportation and warehousing
*Per Ministerial Resolution No. (455) of 2023
01. information and communications
02. financial and insurance activities
03. real estate activities
04. professional, scientific and technical activities
05. administrative and support services
06. education
07. healthcare and social work activities
Emiratisation Quota for Medium to Large Companies?
Speak to our Emiratisation Consultants today to ensure you meet your Emiratisation Requirements now and in the future and avoid fines and penalties.
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From 1 January 2023 you will need to ensure that at least 2% of your total skilled workforce in the UAE are UAE Nationals. “Skilled” workers are determined by their role and whether the role requires a degree.. Thereafter, you must ensure you increase your Emiratisation Rates by 2% every year raising gradually to 10% by 2026.
1 UAE National
2 UAE Nationals
3 UAE Nationals
1 UAE National for every 50 skilled workers or part thereof
0-50 skilled workers
51- 100 skilled workers
101-150 skilled workers
More than 151 skilled workers
Minimum Employment Rate of UAE Nationals
Number of Skilled Workers in Establishment Employing More Than 50 Employees
How to Retain Emiratis?
There are a range of retention measures you could consider such as:
International secondment programmes
Long term incentive programmes
Training schemes
Short term incentive programmes
Speak to our Emiratisation Consultants today to ensure you meet your Emiratisation Requirements now and in the future and avoid fines and penalties.
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The information provided on this website is not to be construed as legal advice, no attorney-client relationship is formed between HR Engine L.L.C-FZ and the website visitor, and HR Engine L.L.C-FZ is not liable for anything that happens to a website visitor as a result of viewing this website and taking (or not taking) action as a result and disclaims all liability in this regard to the fullest extent permitted by law.
