Number of Emiratis in private sector jumps to nearly 80,000

Nearly 80,000 Emiratis are now working in the private sector - a leap of 30,000 in the past six months - as the campaign to get local talent into private business progresses.

The latest figures were released on Sunday after the deadline passed for companies with 50 or more employees to meet the 3 per cent Emiratisation target or face up to Dh500,000 fines.

The number marks a 57 per cent increase in sign-ups since the end of 2022, where 50,228 Emiratis were employed in the private sector, the Ministry of Human Resources and Emiratisation said on Sunday.

“The notable growth in the number of Emirati citizens employed in the private sector reflects the effectiveness of the Emiratisation policies that have been implemented on a semi-annual basis starting this year,” said Dr Abdulrahman Al Awar, Minister of Human Resources and Emiratisation.

“These efforts have accelerated progress meeting Emiratisation targets, and ensured continuous recruitment throughout the year, in line with the directives of the UAE leadership, and under the supervision of Sheikh Mansour bin Zayed, Vice President, Deputy Prime Minister, Minister of the Presidential Court, and Chairman of the Board of Directors of the Emirati Talent Competitiveness Council.”

Mr Al Awar said the aim is to “empower Emiratis to thrive in the private sector, enhance their competitiveness and enable them to actively participate in the economic and overall development” of the country.

Friday was the deadline for private sector companies to ensure that 3 per cent of their workforce comprises of Emiratis.

The Emiratisation measures apply to skilled positions. While companies in free zones are exempt, they are encouraged to participate.

The government announced in February that companies must increase the proportion of Emirati workers by 1 per cent every six months.

Employers have been asked to meet a 4 per cent target by the end of the year, though this moves to 6 per cent next year, 8 per cent in 2025 and 10 per cent by the end of 2026.

The number of Emiratis working in the private sector reached 66,000 in May, with more than 10,000 hired in the first three months of this year, as per government figures.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Number of Emiratis in private sector jumps to nearly 80,000

Companies that missed Friday's Emiratisation deadline now face fines of up to Dh500,000

Ten tax points to be aware of in 2026

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