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UAE implements Emiratization targets for companies with 20 to 49 employees in new policy

Meeting of His Excellency Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratization with editors-in-chief and senior media officials in the UAE, which included a representative from The Filipino Times

In a recent meeting with editors-in-chief and senior media officials, including The Filipino Times, His Excellency Dr. Abdulrahman Al Awar of the Ministry of Human Resources and Emiratization (MoHRE) announced new policies aimed at achieving Emiratization goals in the UAE.

The key policy change involves expanding the pool of private sector establishments subject to Emiratization targets. Under a Cabinet Resolution, companies, and individual establishments with 20 to 49 employees will now be included. This expansion aims to increase Emirati employment opportunities in specific economic activities.

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In a statement during the meeting, Dr. Abdulrahman Al Awar highlighted the UAE’s inclusive nature, stating, “The UAE is an incubator to all nationalities. We want to establish a diverse and inclusive market that serves everyone. However, we also ask for a limited number of opportunities to be reserved for Emiratis.”

To ensure compliance, establishments within the targeted sectors must hire at least one Emirati employee in 2024 and another in 2025.

Failure to meet these requirements will result in financial penalties. In January 2025, non-compliant establishments will face a yearly contribution of AED 96,000, increasing to AED 108,000 in January 2026.

The decision covers a wide range of economic activities, including information and communications, financial and insurance activities, real estate, professional and technical activities, administrative and support services, arts and entertainment, mining and quarrying, transformative industries, education, healthcare and social work, construction, wholesale and retail, transportation and warehousing, and hospitality and residency services.

economic activities

According to Dr. Al Awar, the selection of the targeted establishments was based on scientific studies and various criteria, such as job types, work environment, geographical location, growth trends in the sectors, and Emiratization priorities.

The Ministry aims to achieve a balanced match between educational institutions and job market needs.

During the meeting, Dr. Al Awar emphasized the importance of productive Emirati employees who contribute efficiently to companies. Manipulation and non-compliance will be subject to severe fines, ensuring the effectiveness of Emiratization efforts.

“We want to see Emiratis as real productive employees who are contributing efficiently to companies. It’s not just about numbers or manipulations. We have intensified the penalties to ensure compliance, with a fine of 100,000 dirhams for any manipulation,” stated Dr. Al Awar.

The Ministry’s initiatives have shown positive results, with a significant increase in Emirati employment opportunities. The latest statistics indicate positive trends in employment and facility expansion within the private sector.

The rate of skilled labor growth in the private sector reached 13.7% by the end of the second quarter of 2023, compared to the same period in 2022. Additionally, during the same period, facilities in the private sector grew at a rate of 12.2%. At a rate of 9.9% at the end of the second quarter of 2023 compared to the prior year, the private sector workforce likewise showed growth.

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The top five occupations among Emiratis, according to an analysis of citizen distribution within the private sector, are writing professions (35.4%), technicians in scientific, technical, and humanitarian fields (15.9%), experts in these fields (14.9%), services and sales professions (12.7%), and legislators, directors, and business managers (9.1%). 91% of people employed in the private sector are in positions of authority such as directors, managers, and business owners.

Analyzing the educational qualifications of citizens in the private sector, 40.8% are university graduates and postgraduates, while 46.4% hold a high school diploma. Additionally, 12.8% of citizens have education levels below high school.

Dr. Al Awar addressed concerns about overqualified personnel and emphasized the need for experience and abilities when hiring people as he wrapped off the conference. He claimed that through initiatives like NAFIS, which offers financial assistance and support to Emirati employees, the Ministry hopes to close the pay gap between Emiratis and foreign workers. The aforementioned programme will be accessible till 2026.

Justin Aguilar

Justin is a Senior Assistant Editor and Content Producer at The Filipino Times. She was a TV News Reporter for ABS-CBN News, where she covered news stories and reports for TV and radio programs such as ANC, TV Patrol World, Umagang Kay Ganda, Bandila, and DZMM Teleradyo. She enjoys capturing people’s hearts by highlighting the excellence of Filipinos in her stories and bringing the latest updates to both OFWs and global readers of The Filipino Times. Want to share your story? Reach Justin on Facebook: www.facebook.com/justinaguilar.nerona or send your story at: [email protected]

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