The Ministry of Human Resources and Emiratisation (MoHRE) has announced that it has applied financial contributions to private sector companies for failing to achieve the Emiratisation targets stipulated for the year 2022. This is in line with the implementation of the UAE Cabinet’s resolution to raise the Emiratisation levels of skilled jobs by 2% annually in private sector establishments that have 50 employees effective 2022. The goal of this resolution is to increase the Emiratisation rate to 10% by the end of 2026. The value of the financial contributions imposed on establishments amounted to AED 72,000 for each Emirati not appointed during 2022, which is calculated at the rate of AED 6,000 per month for every UAE national.
Saif Al Suwaidi, Undersecretary for Emiratisation Affairs at MoHRE, has called on private sector establishments to abide by the Cabinet’s resolution and contribute to raising Emiratisation rates in the private sector, which will enable Emiratis to participate in this important sector. He emphasized that this will contribute to enhancing the competitiveness and attractiveness of the UAE job market, and highlighted the ability of Emirati employees to make a positive impact in driving the growth of targeted vital economic sectors.
Al Suwaidi praised the efforts of the private sector establishments that met the required Emiratisation rate for 2022. He expressed hope that these establishments will continue to achieve the target set for them and benefit from the skills of Emirati workers through the Nafis platform across the various specializations of targeted skilled jobs.
Private sector establishments that fail to achieve the Emiratisation target for 2023 will be required to pay financial contributions beginning in 2024. The value of these monthly financial contributions will increase progressively at a rate of AED 1,000 annually until 2026. However, the Ministry provides incentives for distinguished establishments that make qualitative achievements in training and employing Emiratis through the Nafis program. This includes membership in the Emiratisation Partners Club, which increases the establishment’s classification to the first category in the Ministry’s system and entitles them to up to 80% discounts for availing the Ministry’s services.
Emiratisation is a key priority for the UAE government as it looks to increase the participation of national workers in the private sector. By providing incentives and imposing penalties on private sector companies that fail to meet Emiratisation targets, the government hopes to encourage businesses to hire more Emiratis and create opportunities for national workers to build successful careers
