Private establishments subject to Emiratisation targets to be expanded in 2024 and 2025

In implementation of a UAE Cabinet Resolution, the pool of private sector establishments subject to Emiratisation targets will be expanded to include companies and individual establishments with 20 to 49 employees in specific economic activities, the Ministry of Human Resources and Emiratisation (MoHRE) announced on Monday.

The decision aims to increase the number of Emiratis employed in targeted establishments across 14 key economic sectors, requiring them to hire at least one UAE citizen in 2024 and another in 2025.

A yearly financial contribution of AED96,000 will be imposed in January 2025 on establishments that do not comply with the decision in 2024, while non-compliant establishments in 2025 will face a AED108,000 fine in January 2026. The Ministry said non-compliant establishments will be allowed to pay the contributions in installments.

The decision requires establishments to hire a UAE national as a replacement in not more than two months or pay the financial contribution of the targeted year if they reduced the numbers of their UAE national staff after the targeted year.

His Excellency Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, said: “Expanding the pool of establishments subject to Emiratisation targets is based on a study of the economic sectors in the UAE and the business activities and nature of work of companies with 20 to 49 employees, which indicated the rapid growth this segment of establishments is experiencing and its ability to provide additional jobs and a suitable work environment.”

He added: “These conditions will attract UAE citizens to work at these establishments, providing a strong boost to Emiratisation endeavours and enhancing the private sector’s contribution to this national initiative, which has achieved remarkable results with the support and guidance of our wise leadership and the close supervision of His Highness Sheikh Mansour bin Zayed Al Nahyan, UAE’s Vice President, Deputy Prime Minister, Minister of Presidential Court and Chairman of the Board of Directors of the Emirati Talent Competitiveness Council.

“We are confident that expanding the establishments targeted by Emiratisation targets will have a positive impact and bring benefits for both our citizens and the establishments themselves, where the latter will be able to benefit from the support of the Nafis programme.”

The economic activities of the establishments targeted by the decision include specific sectors: 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.

The targeted establishments will be informed via the Ministry’s digital channels, as they will be chosen based on criteria such as types of jobs, work environment, geographical location, nature of growth in these economic sectors, as well as Emiratisation priorities.

UAE Cabinet Resolution No. 95 of 2022, its amendments or other fines stipulated by the legislation will be applied if an establishment proven circumventing or applying fake Emiratisation or providing false information.

The decision will be implemented in parallel with the policies to meet Emiratisation targets for establishments employing 50 or more employees, who are required to achieve a 1% growth in the number of Emiratis working in skilled jobs every six months.