United Arab Emirates: Emiratization Rate for Legal Sector Companies Announced

The United Arab Emirates Council of Ministers issued a decree introducing an Emiratization rate for legal sector companies, which is effective immediately. The decree states that at least 20% of the lawyers and legal advisors working in foreign law firms and legal consultancies that are licensed to work in the United Arab Emirates must be Emirati nationals. This does not apply to foreign law firms and legal consultancies operating in free zones. Prior to this decree, legal sector companies in the mainland were subject to the same Emiratization rate as other private sector employers, which required them to increase their current Emiratization rate in skilled occupations by 2% annually to comply with new requirements. In order to facilitate companies in the legal sector increasing their Emiratization rates, the Ministry of Justice will maintain a register with a list of available Emirati candidates seeking employment opportunities with law firms and legal consultancies. Further, it is expected that certain exemptions will be introduced to the Emiratization requirement in situations where there is insufficient Emirati talent available to meet the required rate. As a result, the Ministry of Justice will submit a report every six months to the Council of Ministers with a list of foreign legal offices that have been excluded from the Emiratization rate, including the exemption status or rate reduction, its duration and the reason for the exemption or reduction. Companies should ensure that they comply with the Emiratization rate. It is unclear how the exemptions will be applied and specific penalties have not been announced but are expected to be forthcoming.