The United Arab Emirates (UAE) government is actively promoting Emiratisation, a strategic initiative to increase the number of Emirati nationals employed in the private sector. This policy aims to create a more balanced and robust workforce while fostering Emirati participation in the nation’s economic growth.
What are the Emiratisation Targets?
The Emiratisation targets outline the expected percentage of Emirati nationals a private company should have within its workforce. These targets are gradually increasing, with the ultimate goal being 10% Emirati representation by the end of 2026.
Key Dates and Deadlines:
As of July 1, 2024, the UAE government is assessing private companies with 50 or more employees for their compliance with the first-half Emiratisation targets for 2024. These targets mandate a 1% increase in the number of Emirati employees compared to the workforce at the beginning of the year.
Failing to meet these targets comes with consequences:
- Fines: Companies face a fine of Dh8,000 per month for each Emirati national they fall short of hiring. These fines are cumulative and will increase by Dh1,000 annually until 2026.
- Compliance Measures: The Ministry of Human Resources and Emiratisation (MoHRE) conducts regular inspections to ensure companies are adhering to the Emiratisation targets.
Strategies for Meeting Emiratisation Targets:
Companies can adopt several strategies to achieve their Emiratisation targets:
- Recruiting Qualified Emirati Candidates: Identify and attract qualified Emirati candidates by advertising vacancies on platforms frequented by Emirati job seekers or collaborating with universities and Emirati professional organizations..
- Upskilling and Training: Enhance the skills and qualifications of existing Emirati employees to broaden their career options within the company.
- Flexible Work Arrangements: Consider offering flexible work arrangements or remote work options to attract Emirati talent seeking a work-life balance.
- Nafis Program: Leverage the Nafis program, a government initiative providing a digital platform that connects companies with qualified Emirati job seekers across various specializations
Benefits of Meeting Emiratisation Targets:
Meeting Emiratisation targets fosters several advantages for companies:
- Compliance and Avoiding Fines: Companies adhering to the targets avoid hefty fines and potential legal repercussions.
- Enhanced Brand Reputation: Demonstrating a commitment to Emiratisation can positively impact a company’s brand image and attract top Emirati talent.
- Diverse and Skilled Workforce: A diverse workforce with Emirati nationals brings a unique perspective and understanding of the local market, fostering innovation and stronger connections with Emirati customers.
Compliance with Emiratisation Regulations:
The MoHRE takes compliance with Emiratisation regulations seriously. Companies found engaging in “fake Emiratisation” practices, such as hiring Emiratis for nominal jobs without any real responsibilities, face severe consequences:
- Fines: Hefty fines ranging from Dh20,000 to Dh100,000 per case can be imposed.
- Downgraded Company Rating: Companies may be downgraded within the MoHRE system, potentially impacting their ability to secure contracts or visas.
- Legal Action: In severe cases, companies may face legal action from the Public Prosecution.
- Emiratisation Financial Contributions: Companies could be required to pay additional financial contributions to support Emiratisation initiatives.
Resources like the Nafis program and support from professional service firms like Aey Accounting can help companies navigate these regulations and achieve their Emiratisation goals.
