UAE employers must take proactive approach to ‘Emiratisation’ expansion

Emiratisation, a core policy in the UAE, aims to provide Emirati citizens with increased job opportunities and career growth within their home country. By encouraging businesses to hire and train local talent, the UAE aims to reduce reliance on foreign workers and bolster its economic development.

The regulations and the broad reach of the Emiratisation rules have significantly developed since January 2023. Initially the updated Emiratisation requirements were focused on larger private companies with 50 or more employees. But in a significant move, the UAE government has recently expanded the program to include private companies with between 20 and 49 employees.

Under the new rules, selected businesses will be required to hire at least one Emirati citizen by 2024, with the requirement increasing to two Emiratis by 2025. The decision will be applied to targeted establishments across 14 key economic sectors including: information and communications; financial and insurance activities; real estate; professional and technical activities; administrative and support services; arts and entertainment; mining and quarrying; transformative industries; education; healthcare and social work; construction; wholesale and retail; transportation and warehousing; and hospitality and residency services.

Target establishments will be notified via the Ministry of Human Resources and Emiratisation’s (MoHRE) digital channels that they have been chosen to comply with this decision. MoHRE has indicated that criteria – such as types of jobs; work environment; geographical location; the nature of growth in a given economic sector; and Emiratisation priorities – will be considered when it selects the targeted establishments.

Failure to comply with the specific quotas for large and small employers within the UAE will result in fines of Dh96,000 ($26,000) for non-compliance in 2024, and Dh108,000 ($30,000) by 2025. Other penalties and sanctions could also follow. 

UAE employment law experts, Luke Tapp and Lujain Assaf of Pinsent Masons, advised small businesses to take proactive measures to ensure compliance and success in the coming years. "To mitigate the risk of fines and to prepare for the year ahead, all businesses should begin thinking of creative measures to recruit Emiratis and incorporate nationals into their workforce,” Assaf said.

Tapp also highlighted the 'NAFIS' program, a federal initiative aimed at enhancing the competitiveness of Emirati workers, as an effective tool for integrating Emiratis into private sector workforces. NAFIS facilitates the recruitment of Emirati graduates wishing to work or get involved in training programs offered by the private sector. The programme offers financial incentives by bridging the salary gap and contributing to pension payments for Emirati workers.