From January 2023, private sector firms who do not meet the enhanced Emiratisation criteria announced by the UAE Cabinet and the UAE Ministry of Human Resources and Emiratisation will have to pay heavy fines, which will increase on a yearly basis.
The UAE Cabinet, chaired by Sheikh Mohammed bin Rashid Al Maktoum, the Vice President, Prime Minister and Ruler of Dubai, previously announced resolutions to increase the Emiratisation rate to 2 percent annually for high-skilled jobs in companies that employ 50 workers or more.
Non-compliant companies will have to pay an amount of AED 6,000 per month, starting from January 2023, for every citizen that has not been employed.
The UAE Minister of Human Resources and Emiratisation added that the fines will increase by AED 1,000 every year from 2023 onwards.
The initiative – which is in line with the Nafis federal programme that aims to facilitate the private sector employment of UAE citizens – is expected to create more than 12,000 job opportunities for UAE nationals annually across all sectors, and will help increase the overall rate of Emiratisation by 2026.
“The UAE government will focus on economic development and empowerment of human capital to reach the goal of building the best and most dynamic economy in the world,” Dr Abdulrahman Abdulmannan Al Awar, the UAE Minister of Human Resources and Emiratisation, said in a media briefing.
Dr Al Awar added that this goal mandates integrated solutions aligned with the needs and aspirations of the individuals and society alike. He said that it will include enhancing and supporting local resources, ensuring the flexibility of the economy, and consolidating the UAE’s reputation as a hub for talent, companies, and investments.
Incentives for companies that meet Emiratisation criteria
The UAE’s leadership has allocated approximately $6.53 billion (AED 24 billion) to employ 75,000 citizens in the private sector over the next five years, Dr Al Awar confirmed.
He added that incentives will be offered to private sector companies that accelerate training programmes for Emirati citizens, and incorporate more Emiratis into their workforce.
Additionally, private sector establishments that accomplish major achievements in terms of recruitment and training of Emirati citizens will receive incentives, including the reduction of the Ministry of Human Resources and Emiratisation service fees by 80 percent.
The UAE’s Nafis programme offers various benefits including the Emirati Salary Support Scheme where UAE citizens will be offered a one-year salary support of up to AED 8,000 per month during training and a monthly support of up to AED 5,000 will be paid for up to five years for university graduates.
The programme provides UAE citizens specialised in fields such as coders, nurses, and accountants with a top-up on their existing salaries.
The programme also offers a subsidised five-year government-paid contribution on the company’s behalf against the cost of pension plans for Emirati staff and full support for the Emirati’s contribution across the first five years of their employment.
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