The UAE relies on a wide range of skilled workers from around the world. At the same time, it puts a lot of effort into growing a strong local workforce to ensure long-term economic growth. This is where the Emiratisation program steps in, and 2024 is bringing some major shifts!
This guide will explain the newest rules in simple terms, look at the help available for companies, and talk about what might happen if businesses don’t meet the requirements. So, get ready to learn about the changing Emiratisation rules in the UAE!
What is Emiratisation?
Emiratisation is the name of a policy of the UAE government. It is aimed at enhancing job opportunities for Emirati citizens in public and private sectors alike. It is also a policy that caters for a mixed workforce with reduction in foreign workers so as to foster growth of the region’s economy over time.
Key Emiratisation Targets:
- Increase Emirati representation to 4% across all companies (public and private).
- Motivate private sector employers to attract and retain Emirati talent.
- Private companies with over 50 employees must achieve a 2% annual increase in Emirati staff (excluding Free Zones).
- Bi-annual 1% increase in Emiratisation, reaching 2% by year-end for some businesses.
- Overall Emiratisation target of 10% by 2026.
New Requirements for 2024:
In January 2024, the UAE government expanded its Emiratisation program.
Expanded Scope:
Private companies with 20-49 employees (in 14 specific sectors) must hire at least one Emirati in 2024 and another in 2025. This expands the program beyond the previous 50+ employee threshold.
Targeted Sectors:
- The policy focuses on 14 key sectors, these include;
- Information & communication
- Finance & insurance
- Real estate
- Professional & technical services
- Administrative & support services
- Education
- Healthcare & social work
- Arts & entertainment
- Mining & quarrying
- Manufacturing industries
- Construction
- Wholesale & retail trade
- Transportation & warehousing
- Accommodation & Hospitality
The idea is to offer and ensure a wider range of job opportunities for Emiratis.
Monitoring and Compliance:
The Ministry of Human Resources and Emiratisation (MoHRE) actively monitors compliance through inspections and penalties for non-adherence.
MoHRE Support for Employers:
The Ministry of Human Resources & Emiratisation (MoHRE) provides support through the Nafis platform. This helps companies to:
- Connect with qualified Emirati professionals.
- Train and incentivize Emirati employees.
- Enhance the competitiveness of Emiratis in the job market.
- Avail other benefits for complying with the program.
- Make use of training workshops conducted by MoHRE to help companies understand the program and utilize Nafis effectively.
Existing 2% Emiratisation Law:
Companies with over 50 employees (mainland, MoHRE-registered) must achieve a 2% annual increase in Emirati staff. The specific requirements are:
- 50 skilled workers: Minimum 1 Emirati employee
- 51-100 workers: Minimum 2 Emirati employees
- 101-150 workers: Minimum 3 Emirati employees
- Over 151 workers: 1 additional Emirati for every 50 workers
Penalties for Non-Compliance:
MoHRE closely monitors compliance. Violations like reducing Emirati employees or manipulating job classifications can result in:
- AED 100,000 fine for the first violation.
- Increased fines (up to AED 300,000) for repeat violations.
- Potential fines of AED 500,000 for subsequent violations.
- Other penalties include bans on government tenders, license cancellation, and work permit suspension.
- Fines for fake Emiratisation (AED 20,000-100,000 per employee).
- Monthly fines (AED 6,000 minimum, increasing annually) for unfilled Emirati positions.
Emiratisation Rules in the UAE: A Breakdown by Business Jurisdiction
The Emiratisation rules in UAE have different requirements depending on where your business is set up. Let’s break it down:
Business Setup in Dubai Free Zone or any Other Free Zone Companies (DIFC, ADGM):
Good news! Setting up a business in a Dubai Free Zone can be advantageous, as companies there generally get a pass on Emiratisation quotas. This includes zones like Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM). However, they’re free to hire Emirati talent if they find a good fit.
Business setup in Dubai Mainland:
Compliance is key for Business setup in Dubai Mainland! Companies with 50+ employees must actively build their Emirati workforce. They need a minimum 2% annual increase in Emirati staff (roughly one Emirati for every 50 skilled workers). Failing to meet these targets results in financial penalties. For example, companies with 20-49 employees need to hire at least one Emirati by 2024 to avoid a fine of AED 96,000 as mentioned earlier.
Offshore Company Formation in Dubai or Anywhere Else in the UAE:
No emiratisation worries! Consider Offshore Company Formation in Dubai. These companies are completely exempt from Emiratisation requirements as they typically operate outside the UAE’s borders and don’t need to hire Emirati nationals.
CorpCreators: Your Partner in Navigating Emiratisation Rules in UAE (2024)
The UAE’s Emiratisation program is in full swing, and with 2024 bringing stricter enforcement and an expanded scope – businesses like yours need to be prepared. We at CorpCreators, understand the challenges of navigating these changes and offer a range of services to help you achieve your Emiratisation goals.
1. Keeping You Informed
Let’s face it, government regulations can be confusing. Hence, our associates break down the latest Emiratisation requirements in plain English, focusing on what matters most to you. We will explain your Emiratisation duties, from new company sizes to industry targets.
2. Building Your Emirati Dream Team
Finding qualified Emirati talent can be tough. But with CorpCreators, you have got an ally. We have a well-established network of recruitment partners specializing in connecting businesses with top Emirati candidates. We will help you source and attract the best talent for your company’s needs.
3. Staying Compliant, Staying Ahead
The Emiratisation rules in UAE are constantly evolving. We will keep you updated on any changes that might impact your business, so you can stay ahead of the curve. Our team will assist you in registering with the Nafis platform, the government initiative connecting businesses with Emirati professionals and offering valuable support programs.
4. Beyond Compliance: The Long Game
Emiratisation isn’t just about ticking boxes. Connect with our business setup consultants in Dubai to understand the long-term benefits of building a diverse and engaged workforce. This includes enhancing your company’s reputation in the UAE market and potentially reducing reliance on foreign labor costs.
5. Your Connection to the Emiratisation Ecosystem:
We are not just business setup consultants in Dubai; we are your partners in success. We connect you with relevant government resources and industry associations. This ensures you have the latest information and a network of contacts to help you navigate the Emiratisation process seamlessly.
So, Let CorpCreators Be Your Guide:
By partnering with CorpCreators, you gain a team of Emiratisation experts who understand the unique needs of businesses in Dubai. We will work with you to achieve compliance, build a strong Emirati workforce, and contribute to the UAE’s vision for a sustainable future.
Don’t go it alone – contact us today and let’s discuss your Emiratisation strategy!
