Emiratisation deadline looms as larger private companies look to fulfil national targets

Smaller businesses with 20-49 employees have until January 1 to reach goal

Emiratis have traditionally shunned the private sector in favour of the perceived security and flexibility offered by government roles. Pawan Singh / The National

Private companies in the UAE with 50 or more employees have until Sunday, June 30 to reach the latest Emiratisation target.

The initiative states that the number of positions filled by Emiratis in larger firms must have increased by 1 per cent from the last deadline, on December 30, to 5 per cent in total.

Companies then have until December 30 to take the total workforce representation to 6 per cent.

First introduced in September 2022, the targets require a 1 per cent increase every six months. The goal is for a 2 per cent increase annually to reach 10 per cent by the end of 2026.

Smaller businesses with 20 to 49 employees must hire at least one Emirati in a skilled position by the end of this year and another by next year.

The requirement applies to privately owned companies in 14 sectors, including property, education, construction and health.

The Ministry of Human Resources and Emiratisation urged companies to achieve the latest target.

“We recognise the efforts of companies that have met targets and urge them to register Emirati employees in one of the authorised pension funds and the wage protection system,” said the ministry on social media.

“Companies who failed to meet Emiratisation targets can benefit from Nafis platform to find Emirati professionals that will add significant value to the growth of their businesses.”

Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai, said in May this year that the number of Emiratis working in the private sector has exceeded 100,000 for the first time.

“Our goal is to add 100,000 new jobs for citizens over the next three years,” said Sheikh Mohammed, who is also Vice President.

What is Emiratisation?

The government has been trying to boost the number of Emiratis who work in the private sector through its Emiratisation drive.

The Emirati employment rate is projected to increase to 6 per cent this year, 8 per cent next year and 10 per cent in 2026.

Those end-of-year goals remain in place, but private businesses must now make sure they reach those targets with an increase of 1 per cent every six months.

The measures apply to skilled positions and companies in free zones are exempt. They are, however, encouraged to participate.

Businesses are being asked to increase the number of citizens they hire by 2 per cent each year to reach 10 per cent by the start of 2027.

What happens if companies don't hit the deadline?

The ministry said it would be reviewing companies' compliance with the required targets, and a fine of Dh48,000 would be imposed for each Emirati not employed.

Calculated at Dh8,000 per month per person, penalties pile up for every month a company is unable to reach the target.

The monthly fine increases by Dh1,000 every year.

Companies who fabricate or mislead authorities regarding their Emiratisation numbers will also face steep fines.

In March, the Ministry of Human Resources and Emiratisation announced that more than 1,200 companies had hired Emiratis illegally in an attempt to get around the rules.

The breaches concerned the employment of 1,963 Emiratis, in which companies were found to be using “fake Emiratisation”. The numbers involved were for the period from mid-2022 to March 14, 2024.

For private companies with 20 to 49 employees, those that fail to employ at least one Emirati this year will face a fine of Dh96,000.

That fine will increase to Dh108,000 for businesses that have not employed at least two Emiratis by next year.