Emiratization: Companies Failing To Meet Targets To Be Fined Dh 84,000

KEY POINTS

Companies with at least 50 employees should make 4% of their workforce Emiratis this 2023
Fines for failure to meet Emiratization targets would be subject to an incremental increase every year
About 9,000 companies exceeded their targets in 2022

The Ministry of Human Resources and Emiratization (MoHRE) has increased the fine for private firms that will fail to meet their Emiratization targets this 2023.

In a media briefing on Thursday, the MoHRE minister, Dr. Abdulrahman Al Awar, confirmed that the annual fine would be increased from last year's Dh 72,000 to Dh 84,000 this year.

Companies with 50 skilled employees or more have until the end of the year to ensure 4% of their workforce are Emiratis. The new fine will be imposed for each Emirati that has not been hired, said Al Awar. He also confirmed that the fine would be subject to an incremental increase every year.

The UAE announced Wednesday that the MoHRE had issued up to Dh 400 million fines against private companies that failed to meet their Emiratization targets for 2022. The rule imposed by the government last year was to have at least 2% Emiratis in skilled roles — a goal achieved by 9,293 companies in total.

"Our goal is to support the private sector," said Emirati Talent Competitiveness Council (ETCC) Secretary-General Ghannam Al Mazrouei. "We have Dh 1.25 billion dedicated to training Emirati calibre in the private sector. We are supporting the private sector by dedicating this budget for training in addition to supporting their salaries."

In a separate statement, Al Awar revealed that more than 7,000 companies have hired Emiratis for the first time and the ministry intends to recognize them.

"There are companies that have exceeded their Emiratization targets and we are planning to honor them," he said.

In the UAE, Emiratis in the private sector are mostly given clerical jobs and other jobs related to scientific, technical and humanitarian fields. They also serve as specialists, managers, and legislators, as well as manufacturers and construction, trade, and manufacturing personnel.

According to Al Awar, the Emiratization program aims to make the government a partner of the private sector in supporting Emiratis and boosting the economy.

"I hope the companies understand that economically, it is more beneficial for them to support the program," he said.