Posted inBusiness

UAE announces major change in Emiratisation rules

Private sector businesses with a workforce of between 20 and 49 staff are now required to meet the UAE Emiratisation targets

Small businesses with a workforce ranging from 20 to 49 employees are now required to comply with the government’s Emiratisation campaign.

The announcement was made by The Ministry of Human Resources and Emiratisation (MoHRE) on Tuesday.

According to the new cabinet resolution, this inclusion will be applicable to private companies operating in 14 key economic sectors, including real estate, education, construction, and healthcare. These companies will be obligated to hire at least one UAE citizen in 2024 and another in 2025.

Previously, only companies with 50 or more employees were required to meet the targets for employing UAE citizens. Earlier this year, the government had mandated that companies increase their proportion of Emirati workers by one percent every six months.

Positive outcomes from the Emiratisation initiative have been observed. MoHRE reported that a total of 79,000 Emiratis are currently employed in the private sector, meeting the one percent Emiratisation requirement for skilled jobs after the expiration of the semi-annual deadline for companies with 50 or more employees.

In order to ensure compliance, companies failing to meet Emiratisation targets will face penalties. Starting from July 8, non-compliant companies will be subject to a fine of Dhs42,000 for each Emirati not employed, based on the one percent semi-annual requirement.

MoHRE stated, “As the ministry is dedicated to achieving its objectives of establishing a competitive job market for UAE nationals and enhancing their skills through increased collaboration with the private sector, we have decided to provide additional time for companies to comply with this decision and avoid associated penalties.”