Emiratization refers to the employment of Emiratis. It is among the top priorities for the UAE government. Earlier this year, the UAE Cabinet announced a comprehensive strategy to increase Emiratization in the private sector.

It has been made mandatory for Companies to raise the number of UAE citizens in their professional staff, which would lead to the creation of about 75,000 jobs by 2026. Enterprises that achieve the Emiratization above and beyond the declared target stand to get several incentives, including 80 percent discounts on the Ministry of Human Resources service fees and Emiratization.

All the companies which will not comply with the rules will have to pay a handsome amount in fines for each Emirati who has not been hired from January 1, 2023.

Here is some additional useful information:

• Emiratization target

It is compulsory for Companies present in UAE with 50 or more employees to raise their Emiratization rate by 2 percent of overall skilled jobs annually. By the end of this year, 2 percent of a company’s professional staff must be Emiratis. This must increase by 2 percent every year to reach 10 percent by 2026.

• Financial penalties if a Company fails to meet the target

A monthly fine of Dh6,000 will be charged From January 2023 for every Emirati who has not been hired. This will amount to Dh72,000 annually. The fine will be raised by Dh1,000 on a yearly basis.

• Case study

Suppose a company has 100 employees. It would need at least two Emiratis on the professional staff by the end of this year. If it fails to hire even two Emiratis by then, the total monthly fine will amount to Dh12,000 (Dh6,000 per Emirati not hired). If this situation continues for the entire year, the overall annual penalty will amount to Dh144,000 (Dh72,000 per Emirati not hired).

• How to pay the fine?

As per the details announced earlier, the total fine is paid yearly and in one instalment for that year. However, according to the details posted on the official UAE government website, the penalty should be paid through the digital mediums of the MoHRE.

If an establishment conducts fake Emiratization to receive benefits from the Nafis programme, a penalty of amount between Dh20,000 and Dh100,000 is charged for each fake Emirati employee. The same fine applies to firms that submit false documents or data to obtain benefits.

An administrative fine of Dh20,000 should be applied for every Emirati employee if the beneficiary did not join the company after a permit was issued and the firm failed to report it to the authorities. The same fine applies if the enterprise fails to report to Nafis about a beneficiary who has stopped working.