United Arab Emirates: Reminder of Upcoming Deadline for Mainland Private Sector Employers to Increase Emiratization Rate
June 7, 2024
Mainland companies in the private sector in the United Arab Emirates with 50 or more employees are reminded that they must increase their current Emiratization rate by an additional 1% by June 30, 2024, per the 2023 announcement by the Ministry of Human Resources and Emiratization (MOHRE). Under this policy, by June 30, 2024, all eligible companies must have an Emiratization percentage of at least 5%. Companies which have a higher Emiratization rate must still increase their percentage by 1% on June 30, 2024. Employers who fail to comply with the prescribed Emiratization target will be subject to fees of AED 8,000 (approximately USD 2,178) per month for every vacancy that has not been filled by an Emirati worker in 2024; this number will increase by AED 1,000 per month each year after 2024. Affected companies must ensure that they correct their Emiratization rate in line with the requirements to avoid incurring monthly fees and possible portal blocks which can interrupt the recruitment of employees. The increase in Emiratization rates dates back to a 2022 announcement by the MOHRE which required private sector employers in the mainland with more than 50 employees to increase the percentage of Emirati employees, which was followed by a 2023 announcement which implemented even stricter Emiratization requirements. Companies are encouraged to register with the UAE government partnership program, “Nafis”, where they can find initiatives that support companies seeking to hire UAE nationals.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
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