21 days left for UAE businesses to meet mid-year Emiratisation target or face fines

Image: MOHRE

The Ministry of Human Resources and Emiratisation (MoHRE) had set a deadline of June 30 for companies employing 50 or more workers to achieve their half-yearly Emiratisation targets, set at one per cent of skilled jobs. The MoHRE website shows the countdown not at 21 days for meeting the mandated targets.

The deadline was announced in April 2023, in line with the amendment of some of the provisions of Cabinet Resolution No. (19/5m) of 2022 regarding the mechanism of achieving yearly Emiratisation increase targets.

The resolution states that a one per cent Emiratisation increase should be completed before the end of June, with the yearly two per cent increase target to be achieved before the end of the year.

Emiratisation non-compliance fine

Non-complying companies will face fines starting July 2023, for not achieving the required half-yearly rate and the 2022 targets.

A penalty of Dhs42,000 will be applied for every Emirati not hired within targeted companies, at a rate of Dhs7,000 per month for 2023, in line with the cabinet decision. The fines will increase by Dhs1,000 yearly until 2026.

A federal law aims to raise Emiratisation rates by two per cent annually to reach 10 per cent by the end of 2026.

The UAE had amended the mechanism for achieving the targets. The annual target is divided by one per cent in the first six months and the other one per cent in the second half of the year.

Those exceeding the targets get the chance to join the Tawteen Partners Club, which boosts the ranking of the company to Category 1, providing them with discounts of up to 80 per cent on ministerial fees, according to MoHRE.

MOHRE announces 30th June as deadline for #privatesector companies with 50 employees or more to achieve their half-yearly Emiratisation targets, set at 1% of skilled jobs #WamNews https://t.co/Sd90ALnI2S pic.twitter.com/igV7no5kAK

— WAM English (@WAMNEWS_ENG) April 26, 2023

MoHRE said more than 10,500 Emiratis joined the private sector since the beginning of 2023, bringing the total number of Emirati employees in the private sector to over 66,000.

The increase of Emirati employees in the private sector was accompanied by a 13 per cent increase in the number of private sector companies employing Emiratis in Q1 2023, compared to 2022, as the total number of companies hiring UAE nationals to date has exceeded 16,000.