Emiratisation in the Private Sector
The UAE has introduced Emiratisation rules for private sector companies, requiring them to meet a 1% Emiratisation target by June 30. The UAE Ministry of Human Resources and Emiratisation (MoHRE) announced that private sector companies with 50 or more employees must achieve this target for skilled jobs.
This directive aligns with the amendment of certain provisions in Cabinet Resolution No. (19/5m) of 2022, which mandates annual increases in Emiratisation targets. Companies are required to meet the 1% Emiratisation target by the end of June and a 2% annual increase by the end of the year.
Aisha Belharfia, Acting Undersecretary for Emiratisation Affairs and Assistant Undersecretary for Labour Affairs, emphasized the private sector’s role in enhancing the UAE’s job market attractiveness and competitiveness. She urged companies to meet the half-yearly Emiratisation targets to avoid fines and to utilize the support provided by Nafis for hiring Emirati talent in skilled roles.
Belharfia also highlighted the importance of expanding job opportunities for Emiratis in the private sector and establishing a supportive network for their career development. The MoHRE commends companies that train and employ Emiratis in alignment with Nafis’ goals.
Additionally, she noted that Emiratis can join the Tawteen Partners Club, which enhances the company’s ranking to Category 1 and offers up to an 80% discount on the Ministry’s fees.
The MoHRE will impose fines on non-compliant enterprises in July 2023 for failing to meet both the 2022 and half-yearly targets.
UAE declares harsh penalties for phoney Emiratization
According to the Cabinet Decision, a penalty of AED42,000 will be applied, at a rate of AED7,000 per month for 2023, for each Emirati who is not engaged by targeted private sector enterprises.
According to the announcement, the penalty would rise by AED 1,000 per year until 2026.
“We anticipate the outcomes of the new system for meeting Emiratization targets, which ensures year-round employment of Emiratis and keeps them in the private sector. Additionally, it maintains job openings and offers on Nafis’ platform all year long, in line with the rate at which job seekers register, said Belharia.
