Emiratisation: Navigating Workforce Rules in the UAE

For companies in the UAE, expanding the workforce is not only about assessing the qualities and skills of potential candidates. An equally important factor is compliance with Emiratisation requirements - national initiatives designed to increase the participation of Emiratis in the private sector.

Applicability

Emiratisation requirements apply to mainland companies, not free zones, and they apply to all companies employing more than 20 employees, with varying requirements depending on the number of employees.

For companies with 50 or more employees

The first set of enforceable Emiratisation targets was released under Ministerial Resolution No. 279 of 2022. Under this resolution, establishments with 50 or more employees are required to increase Emiratisation by 2% in high-skilled jobs. This incremental approach adds up to an overall target of 10% by 2026. For each year of implementation, this would be calculated in the following manner:

Failure to comply was to be charged with Dh6,000 monthly beginning 2023, to be increased progressively by Dh1,000 every year. In 2025, this would mean businesses have to shell out a whopping Dh96,000 (Dh8,000 per month) for every citizen who has not been employed in accordance with the regulations.

For companies with 20-49 employees

Starting the past year in 2024, private sector companies with a workforce of 20 to 49 workers were required to hire at least one UAE citizen. For 2025, this requirement would have increased to at least two Emirati citizens.

Under the Ministerial Resolution No. 455 of 2023 that mandated the above, companies in 2025 that have failed to do so will have to pay an increased contribution of Dh108,000 compared to Dh96,000 in 2024.

Practical Tips for Employers

To meet these quotas, businesses must integrate Emiratisation into their long-term workforce planning. This includes:

• Conducting HR audits to measure current compliance levels as the recommended first step to acting on the Emiratisation targets,
• Seeking legal advice to ensure that sector-specific and organizational size-specific nuances are addressed,
• Establishing recruitment pipelines by early interaction with Emirati recruitment platforms and universities, and
• Collaborating with Emirati talent databases such as NAFIS - a governmental federal program aimed at increasing the competitiveness of the Emirati human resources and empowering them to occupy jobs in the United Arab Emirates’ private sector over the next five years.

Businesses are also advised to provide upskilling opportunities and foster inclusive workplaces where Emirati employees can thrive.