In a concerted effort to prioritise the employment of UAE citizens, the United Arab Emirates (UAE) has set strict Emiratisation targets for companies with over 50 employees. Failure to meet these targets by the designated deadline can result in hefty fines of AED42,000 ($11,400) for each Emirati individual not employed.
Earlier this year, the Ministry of Human Resources and Emiratisation (MoHRE) revealed that the total number of private sector establishments, reached 405,733 in 2022 with an increase of 31,749 new establishments that entered the UAE labour market during the past year.
The UAE offers a thriving landscape for private sector tech companies, positioning itself as a leading hub for innovation and technology in the Middle East. The country has made significant investments in infrastructure, research and development, and digital transformation, creating a supportive ecosystem for tech startups and established companies alike.
As of the end of 2022, UAE firms were required to ensure that a minimum of two percent of their workforce consisted of UAE nationals. This percentage is expected to increase by an additional two percent annually, ultimately reaching 10 percent by 2026.
The Ministry of Human Resources and Emiratisation (MoHRE) previously mandated that private sector companies achieve one percent Emiratisation targets every six months, with an annual increase of two percent before the year’s end.
However, to accommodate the first half-year target, a deadline extension has been granted. In a social media statement, companies were informed that they have until July 7, 2023, to meet the Emiratisation targets.
The MoHRE emphasised, “We urge private sector companies with 50 employees or more to achieve the semi-annual Emiratisation targets for skilled positions, which require a 1% Emiratisation growth by July 7, 2023, to avoid a fine of AED42,000 for each Emirati not employed.”
For every Emirati citizen not hired by the specified private sector companies, a penalty of AED42,000 will be imposed. The fine is calculated at a rate of AED7,000 per month for 2023, as outlined by a Cabinet Decision. Moreover, the fines will progressively increase by AED1,000 annually until 2026.
To facilitate the job search process for both jobseekers and employers, the UAE has introduced significant updates to its Nafis platform in preparation for the mandatory Emiratisation deadlines.
The Emirati Talent Competitiveness Council recently announced enhancements to the Nafis platform, allowing companies to easily post professional opportunities and connect with qualified Emirati talent.
The revamped platform boasts a more user-friendly interface and an improved overall user experience. Jobseekers can now provide detailed information about their educational qualifications, skills, and professional experience, enabling them to find more suitable job opportunities based on their profiles.
Additionally, jobseekers can swiftly access information about their entitlements, including eligible benefits, as well as monitor their job applications and statuses.
On the employer’s side, the partners section of the Nafis dashboard offers a comprehensive overview of relevant entitlements, including benefits and posted professional opportunities. This streamlined access makes it easier for companies to connect with suitable Emirati candidates for their job vacancies.
Partners will also enjoy increased flexibility in contacting candidates and have the option to conduct the entire recruitment process through the platform. From candidate selection to final offer agreement, every step of the process can be documented efficiently within the platform.
