United Arab Emirates: Clarifications Issued on Economic Sectors Impacted by New Emiratization Requirements

The Ministry of Human Resources and Emiratization (MOHRE) recently clarified the types of companies that will be affected by the recent expansion of Emiratization requirements to employers with headcounts of 20 to 49 employees, beginning in 2024. The MOHRE is now dividing activities that employers perform into primary and secondary activities, in accordance with the International Standard classification of Economic Activities, which the MOHRE updates regularly; this has the effect of reducing which employers are affected by the Emiratization requirements as the activities are more narrowly tailored. For example, under the construction primary activity, only those employers performing a secondary activity of electrical installations are affected; and for the manufacturing primary activity, only those employers performing secondary activities manufacturing generators, transformers and distribution and control devices for electricity and basic chemicals industry are affected. Employers should continue to monitor the developments of the Emiratization program and any actionable notifications or instructions from the MOHRE.