In its continuous commitment to empowering Emiratis in the job market, the UAE has fervently pursued the ‘Emiratisation’ movement through robust policies and regulations.
Now, the Ministry of Human Resources and Emiratisation (MoHRE) has informed more than 12,000 private companies employing 20-49 individuals that the Cabinet Resolution No. (33/5W) of 2023, concerning the extension of Emiratisation targets, will come into effect from January 2024.
This initiative is anticipated to generate approximately 12,000 job opportunities annually for UAE citizens within vital economic sectors throughout 2024 and 2025. The aim is to further strengthen the Emiratisation agenda, a key priority for the UAE Government. Continue reading the blog, ‘MoHRE Directs 12,000+ Private Companies to Meet Emiratisation Goals in UAE’, to know more about the Emiratisation targets, penalties, and benefits of the new Emiratisation rules.
What Are the Emiratisation Targets for Private Companies in UAE?
The Emiratisation targets for private companies in the UAE mandate that firms with 20-49 employees must hire UAE nationals. Starting January 2024, Cabinet Resolution No. (33/5W) necessitates employing at least one Emirati in 2024 and an additional national in 2025.
Starting January 2025, non-compliant companies will face an annual financial penalty. They’ll be charged $26,112 (AED 96,000) for every UAE citizen not employed as per the requirements in 2024.
This progress is part of the UAE’s Nafis Program, designed to help Emirati nationals secure jobs in the country’s private sector. Launched on September 13, 2021, as a key element of the UAE’s “Projects of the 50” initiative, the Nafis Program focuses on supporting Emiratization and enhancing opportunities for local citizens.
Furthermore, the new mandate comes in addition to Emiratisation targets for companies with 50 or more employees that are required to achieve a 2 percent Emiratisation growth in skilled jobs.
This applies to companies that operate within the following 14 sectors:
- Information and communications
- Financial and insurance activities
- Real estate activities
- Professional, scientific, and technical activities
- Administrative and support services
- Healthcare and social work activities
- Arts and Entertainment
- Mining and quarrying industry
- Wholesale and retail trade
- Transportation and warehousing
- Hospitality services.
New Incentives For Companies That Meet Emiratisation Targets
The UAE government has also introduced incentives as a move to bolster Emiratisation efforts. Companies that meet Emiratisation targets will now be prioritized in bidding for government procurement contracts, it was announced on Thursday.
The Ministry of Human Resources and Emiratisation (MoHRE) and the Ministry of Finance (MOF) unveiled the new initiative intended to boost the success of the Emiratisation drive within the private sector.
List of benefits
In addition to other benefits for compliant companies, these incentives include:
- Enlisting them in the Emiratisation Partners Club
- Nafis benefits, such as financial support
- Providing access to the database of eligible Emirati professionals for the private sector.
- A program that provides pension contribution support
- Priority on government tenders
Younis Al Khoori, undersecretary of the MOF pointed out that the Ministry of Finance is working to meet all the requirements to advance the Emiratisation process, making certain that the active participation of UAE nationals in the labor market, and increase their contribution to the national economy,
MOHRE Acts on False Emiratisation
Since its launch, the Emiratisation program has been strictly followed in the country. Recently, the Ministry of Human Resources and Emiratisation (MoHRE) disclosed that approximately 113 private companies have been reported to the Public Prosecution for violating Emiratisation regulations.
Among these, 98 private companies were involved in the improper appointment of citizens in fraudulent Emiratisation positions, while 15 other companies were directly engaged in bypassing Emiratisation objectives.
They have also imposed a Dh100,000 administrative fine on each company for failing to attain the annual Emiratisation growth rate targets, in addition to their referral to the Public Prosecution.
Stay Updated With Damaar Business Consultants
It’s important to stay informed about regulations and guidelines, especially when starting a business in the UAE. That’s where we step in to help. At Damaar Business Consultants we understand the significance of staying updated with the ever-evolving business landscape and regulations. Our expertise lies in simplifying complex information, offering guidance, and providing essential insights to navigate the UAE’s business environment effectively. Trust us to keep you informed and equipped with the knowledge needed to kickstart and sustain your business journey in the UAE.