The UAE Ministry of Human Resources and Emiratisation (MoHRE) has issued a warning for private sector companies with 50 employees or more to meet their Emiratisation targets.
In a new Twitter post, the authority listed five important factors related to Emiratisation targets that were amended at the beginning of 2023.
“The beginning of 2023 marked a fresh start to achieve annual growth rates for Emiratisation at companies with 50 employees or more. The amendment aims to maintain Emiratis’ employment and retention rates in the private sector to reach 10 percent growth by the end of 2026,” the Twitter post said.
The beginning of 2023 marked a fresh start to achieve annual growth rates for Emiratisation at companies with 50 employees or more. The amendment aims to maintain Emiratis’ employment and retention rates in the private sector to reach a 10% growth by the end of 2026. #UAE #MOHRE pic.twitter.com/WMCCBah1dF— وزارة الموارد البشرية والتوطين (@MOHRE_UAE) April 4, 2023
MoHRE also said that:
- Compliance is monitored semi-annually (1 percent Emiratisation growth every 6 months)
- Increase in nationalisation rates remains 2 percent annually
- No further obligations are required
- Fines for non-compliant establishments remains unchanged
- Fines will be collected semi-annually
In March, MoHRE also sent a reminder, informing firms they have less than four months to achieve the new targets or face fines. Private companies in the UAE now have less than three months to comply with these nationalisation targets.
A message by the MoHRE Twitter account said: “A UAE Cabinet resolution on modifying the mechanism for achieving Emiratisation targets at private sector companies with 50 employees or more came into force.”
It went on to say: “The overall mechanism for achieving the targeted Emiratisation rates has not changed; it became semi-annual instead of annual. Companies with 50 employees or more are required to achieve an increase of 1 percent of skilled jobs every 6 months and reach a growth rate of 2 percent by the end of the year.
“The annual 2 percent Emiratisation growth for skilled jobs in 2022 for private sector companies and the 10 percent goal for 2026 have not been changed in this resolution.
“The resolution aims to accelerate achieving Emiratisation targets and employing UAE nationals in the private sector throughout the year.
The fines, the MoHRE says, have not been modified.
Currently, firms that fail to meet the targets will be fined at a rate of AED6,000 a month or AED72,000 a year. The fine will be paid in a single installment.
The value of the monthly fines imposed on private sector entities will increase progressively at a rate of AED1,000 annually until the year 2026.
The MoHRE statement added: “The resolution plays a significant role in enhancing the workforce planning without overlapping with the Emiratisation targets as there will be no new or additional commitments on companies.
“Financial contributions will start to be applied in July 2023, as well as the remaining contributions from 2022.”
The Ministry provides a package of incentives for establishments that make qualitative achievements in training and employing UAE citizens in line with the objectives of the ‘Nafis’ programme, including joining the Emiratisation Partners Club, which raises the establishment’s classification to the first category in the Ministry’s system – which will entitle them to up to 80 percent discounts for availing the Ministry’s services.