Emiratization: UAE To Fine Private Companies Semi-Annually If They Don't Meet Target Growth

Private companies that do not achieve the United Arab Emirates' Emiratization employee target growth of 1% by July 1 will now be fined twice a year, as part of the government's efforts to ensure the corporate sector hires more Emiratis in skilled roles.

"The implementation of fines (on firms that don't meet targets) is semi-annual now – instead of waiting until the end of the year as was the case before," Minister of Human Resources and Emiratization Dr. Abdul Rahman Al Awar told Khaleej Times on Tuesday.

The companies that do not reach the 1% target by July 1 will be penalized AED 7,000 (approximately $1,905) for every Emirati not hired.

Apart from the fines that will be implemented starting July 1, the penalties for non-compliance in the past year will also be collected, the outlet reported.

Al Awar clarified that there were no additional requirements for private companies, adding the UAE government only changed the implementation and monitoring process regarding Emiratization of workplaces.

The goal of the UAE government was to increase the number of UAE nationals in skilled jobs by 1% every six months. The annual Emirati employee target goal has been set to 2% growth at the end of each year to reach its Emiratization rate target of 10% by the end of 2026.

The news of the amended penalties came just about a week after the Ministry of Human Resources & Emiratization said private companies are required to register their Emirati employees in the pension system within a month from the provision of their work permits, as per Gulf Today.

The recent developments in the monitoring of private companies were part of the government's Emiratization drive that was supported by the Nafis program, which looks to support UAE nationals, who wanted to pursue jobs in the private sector.

The Nafis program, launched in September 2021, looks to create jobs for skilled and knowledge-based roles in private companies that employ 50 or more workers. The initiative aims a total Emirati workforce growth rate of 8.5%, and skilled workers should account of 7.6% of the said growth rate target.

Last month, the government said 28,700 UAE nationals have been hired by private companies since the Nafis initiative was launched, The National reported.

At the time, the government also announced heavy fines for private firms that did not meet a Jan. 1 deadline to have a workforce composed of 2% UAE nationals.