UAE: More than 900 companies caught breaking Emiratisation rules

Dh84,000 fine: Ministry reminds firms to meet localisation targets before December 31 deadline

by

Sahim Salim

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Published: Tue 19 Dec 2023, 6:00 AM

Last updated: Tue 19 Dec 2023, 10:43 PM

About 916 companies have been caught violating rules around Emiratisation requirements from mid-2022 to date. Violations included attempts to circumvent Emiratisation targets, and bogus posts created to inflate numbers. These companies hired a total of 1,411 UAE nationals.

This came as the Ministry of Human Resources and Emiratisation (MoHRE) reminded private sector companies with 50 employees or more to meet their Emiratisation targets for 2023. They have to register a 2 per cent growth in having Emiratis in skilled jobs before the end of December. The ministry cautioned companies against attempts to evade Emiratisation targets or create bogus roles.

The ministry warned that companies that fail to comply with annual Emiratisation targets will be required to pay fines from January 2024.

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Companies are required to add 2 per cent of Emiratis to their workforce every year until 2026. By the end of last year (2022), companies had to on-board UAE nationals in 2 per cent skilled roles. By the end 2023, this must be upped to 4 per cent.

Every year, the fines for not meeting the target increase by Dh1,000 per month per Emirati not hired. The penalty was Dh6,000 last year per month per Emirati, and this year, it’s Dh7,000. For 2023, companies that have not met targets are looking at an annual fine of Dh84,000 per unemployed citizen.

“Companies that have yet to meet their commitments can benefit from the Nafis platform, which provides access to a considerable pool of qualified UAE citizens specialised in various sectors to fill their vacant positions,” the MoHRE said.

The ministry said over 18,000 companies have helped register an “unprecedented increase” in the number of UAE citizens joining the private sector. Over 88,000 Emiratis are now working in different roles across the country.

The ministry highlighted the benefits and privileges granted to companies that join the Emiratisation Partners Club. These include up to 80 per cent reduction in MoHRE’s service fees, priority in the government procurement system and access to benefits from the Nafis programme for companies and individuals.

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