UAE Minister Urges Private Companies To Meet Emiratization Target To Avoid Fines

The UAE minister of Human Resources and Emiratization, Dr. Abdulrahman Al Awar, has reiterated the mandatory Emiratization of private companies in the region.

The UAE has seen a 27% Emiratization increase since 2020. Despite this "very promising result," Al Awar said there remains a need to encourage the private sector to further raise their Emiratization rates and be aware of the country's targets.

Companies have less than a month to comply with the rule to avoid fines.

"There is still an urgent need to enhance the awareness of the partners in the private sector and encourage them to follow the Cabinet resolutions on Emiratization to raising Emiratization rates and avoid related fines," he told Khaleej Times.

Al Awar said companies are required to boost their Emiratization rates by 2% annually, particularly on high-skilled roles in organizations with at least 50 employees.

"The current target of Emiratization rate, which is 2%, is calculated as the total number of nationals working in the establishment to the total skilled employees, which means hiring one Emirati for every 50 skilled employees per annum," he explained. "The government aims to achieve an increase of 10% in the Emiratization incremental rate in the private sector by 2026."

Al Awar revealed that 16 private companies were able to achieve their Emiratization targets in less than two months since the rule was imposed. The companies were honored by the Ministry of Human Resources in July.

"We have honored those companies that are committed to create high-skilled jobs that enable the UAE nationals to unleash their capabilities and enhance their competencies in line with the rapid development," he said.

Starting Jan. 1, 2023, companies that fail to achieve the target will be fined with a Dh 72,000 penalty for every UAE national they fail to hire. Until then, he said the ministry will continue to support the private sector in its Emiratization efforts.

"At the ministry, we are committed to stimulating the partnership between the public and private sectors to create job opportunities for Emiratis and advance the process of empowering Emirati talents in various areas," he said. "We continue our efforts to follow up on Emiratization rates in the private sector, support compliant enterprises and apply monthly contributions or fines and administrative penalties for non-compliant ones."