UAE: Emiratisation target doubled to 4% for private firms, violators to face stiffer penalties

The Ministry of Human Resources and Emiratisation (MoHRE) aims to double the Emiratisation target for private sector by end of 2023 and violations will result in stiffer penalties than now.

Companies in the private sector with more than 50 employees had time until December 31 to raise the number of Emirati staff to 2 per cent of the workforce. Non-compliance with this regulation has resulted in Dh72,000 annual fine at the rate of Dh6,000 per month for every Emirati national who has not been appointed by the end of 2022. The ministry has started imposing fines, it announced on Friday.

Meanwhile, Saif Al Suwaidi, Undersecretary for Emiratisation Affairs at MoHRE, has urged private sector companies to continue the recruitment drive and raise the Emiratisation rate to a minimum of 4 per cent by the end of 2023 and avoid a higher fine at the start of next year.

According to the ministry, the value of the monthly financial contributions imposed on private sector entities will “increase progressively at a rate of Dh1,000 annually” until the year 2026. The ministry seeks to raise the number of Emiratis at a private sector company to 10 per cent of the total staff by the end of 2026.

The ministry provides a package of incentives for distinguished establishments that make qualitative achievements in training and employing Emiratis in line with the objectives of the ‘Nafis’ programme, including joining the Emiratisation Partners Club, which raises the establishment’s classification to the first category in the ministry’s system – which will entitle them to up to 80 per cent discounts for availing the ministry’s services.

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