UAE Kicks Off New Emiratization Targets For 12,000 Firms

The Ministry of Human Resources and Emiratization (MoHRE) started the implementation of the cabinet decision on more than over 12,000 companies with 20-49 employees to meet Emiratization targets.

The official X handle, formerly Twitter, shared a post Tuesday, noting that the expansion of Emiratization targets decision is now in effect and MoHRE stressed that these private companies should hire at least one UAE national this year and another one, next year.

"Over 12,000 private companies with 20-49 employees operating in 14 specific economic activities are now subject to Cabinet's decision of meeting Emiratization targets in 2024 and 2025," the official handle mentioned.

This decision targets companies that operate in 14 key areas including information and communications, finance and insurance, real estate, professional and technical activities, administrative and support services, education, healthcare and social work, arts and entertainment, mining and quarrying, transformative industries, construction, wholesale and retail, transportation and warehousing, accommodation and hospitality.

The failure to meet the required targets attracts a fine of AED96,000 for each UAE citizen not appointed in 2024, to be collected in January 2025. Further, a fine of AED108,000 will be imposed for failure to meet 2025 targets and will be collected in January 2026.

The Emiratization requirements for companies with 20-49 employees are implemented along with the ongoing implementation of Emiratization targets for companies with 50 or more employees, which are required to achieve a 2% annual growth in the Emiratization of their skilled jobs.

The department urged companies subject to the decision to "quickly meet their Emiratization targets and avoid delaying it until the end of the year."

It may be recalled that MoHRE had imposed penalties in July last year on 436 out of 441 private companies that violated Emiratization decisions and also downgraded those establishments to the third category, the lowest category in the private sector.

When a private company falls in the third category, it has to pay higher fees to the government compared to the first and second categories.

Last year in August, MoHRE disclosed that 565 companies have been involved in hiring fake 824 UAE nationals, adding that the UAE government will take "necessary legal and administrative action" against those entities.

At that time, MoHRE revealed that its digital and field monitoring system efficiently tracks and identifies violations of Emiratization commitments by companies.

While the UAE is being strict with private firms over Emiratization, it is also coming up with solutions for those who want to work, especially in the education sector as it introduced a new Private Teacher Work Permit in December 2023.