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From January 1, UAE companies with 20 to 49 employees will face fines if they do not meet the Emiratization target of employing at least one UAE citizen.
Last year, the Ministry of Human Resources and Emiratization notified 12,000 companies that met the criteria for inclusion in the expanded Emiratization target for small companies.
Starting Monday, large businesses with 50 or more employees must also ensure that Emirati employees make up 4% of their total workforce.
A new target of 6% by the end of 2024 and 10% by the end of 2026 has been set.
Businesses in the free zone are exempt from the ruling.
According to previous data from the ministry, some 9,293 companies achieved the target of employing Emiratis in 2% of technical positions by 2022.
fines and penalties
Employers who fail to meet the January 1 target will be fined 96,000 dirhams ($26,140) for businesses with 20 to 49 employees.
A new target has been set for small companies to have two Emirati employees by January 1, 2025, with violators subject to a fine of Dh108,000.
Businesses with 50 or more employees who fail to meet these targets will be fined Dh84,000, up from Dh72,000 in 2023.
Fines are increasing year by year and severe penalties are imposed on companies that try to evade Emiratization targets. These include fines of up to Dh500,000 for serious violations, such as reducing the number of employees or changing job titles.
Looking for talent
Ayman Abu Halaweh, general manager of Justitia Consultants in Dubai, said he would soon be asked to comply with the targets for small companies.
“Over the next six to 12 months, we will expand our team to approximately 25 members. This brings us to the new Emiratization goals of the UAE,” he said.
“In my 15 years working in the UAE, I have met numerous qualified, creative and outstanding Emirati professionals in this field. Based on what I have seen, I believe we are looking for talented and qualified Emirati for our business There won’t be any challenges on the human side.”
Dr. Abdullah Al Nasser, an Emirati lawyer and founder of Araa Advocates Group, said the new Emiratization targets apply to his company, which has 20 employees.
The company is recruiting at least 10 employees for a new unit focused on technology and artificial intelligence use cases.
He is confident in the skills of the new generation of Emiratis in this field.
“We have been amazed by how quickly this new generation has adapted to technological advances, and by integrating these fresh, innovative talents into our company’s workforce, they are expected to take our performance to unprecedented heights,” he said.
Check often
The ministry has been monitoring compliance to ensure employers are adhering to the rules to achieve their objectives. The authorities identified 916 private companies that violated the Emiratization policy between mid-2022 and December 2023.
More than 18,000 companies have achieved the required targets, and approximately 88,000 Emiratis are currently employed in the private sector.
Emiratization violations include hiring family members to fill false positions or falsifying employment records by obtaining false work permits in the name of a UAE citizen.
Consequences of running away from your goals
The ministry said companies that are punished will be fined between Dh20,000 and Dh100,000. They will also no longer receive financial benefits from the Emirates Talent Competitiveness Council program.
Companies that break the rules are also demoted to the lowest category in the private sector classification system.
This means they face higher work permit service fees and transfer fees. For some licenses, they may have to pay Dh3,750 instead of just Dh250.
A UAE employer falsified employment data and hired 43 family members to work for the company to meet its targets. He could face a fine of up to Dh4.3 million.
The government has also taken steps to support Emiratis in private sector employment through the creation of the Nafis scheme, which provides salary increases and other benefits to Emirati graduates.
Under the initiative, an Emirati graduate with a starting salary of Dh13,000 can take home Dh20,000. There are additional benefits for those with children.
The ministry warned that Nafi’s benefits would be revoked for Emiratis involved in false Emiratization strategies.
Update time: 2:00 am on January 1, 2024
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