Emiratisation targets: Starting 1 January 2023, non-compliant companies to be fined

Starting from 1 January 2023, private sector companies with 50 employees or more that have not raised Emiratisation targets by 2% of skilled jobs in 2022, will be fined, the Ministry of Human Resources and Emiratisation (MoHRE) said on Thursday.

The fines are AED6,000 per month, a total of AED72,000 annually, for each Emirati who has not been employed as per the requisite percentage to be achieved by the end of 2022. The value of the monthly penalties increases progressively at a rate of AED1,000 annually until 2026, by which companies are required to achieve up to 10% growth rate in their Emiratisation targets.

In a statement, the Ministry said: “We aim to achive an effective participation of the private sector in the development process of the UAE, as raising the participation of Emiratis in this sector will have a positive impact on the competitiveness, attractiveness, and stability of the business environment in the country.”

“We will continue to activate the partnership between the government and the private sectors on Emiratisation, based on our belief that Emiratis can make a positive impact within the vital economic sectors, as well as our aspiration to advance the growth of the private sector companies and improve their ability to keep pace with successive developments locally and globally,” it added.

The Ministry noted that the legislation governing Emiratisation will contribute to “strengthening the diversification of the labour market and will consolidatate the UAE’s position as an incubator of national and international talents and an ideal destination to work, live and invest.”

The Ministry lauded the steps taken by companies that have met the required Emiratisation targets for 2022, adding: “Now, we look forward to witnessing a greater impact in 2023, as the Emiratisation targets will increase by 2% until 2026, resulting in a growth by 10% of Emirati skilled employees.”

The Ministry offers support and incentives for the companies that achieve qualitative achievements in training and employing Emiratis in accordance with the objectives of the Nafis program, which include joining the Emiratisation Partners’ Club that leads to be classified as a category one companies in the Ministry’s establishment classification system, thus obtaining discounts of up to 80% on the Ministry’s service fees.