Private businesses in the United Arab Emirates (UAE) employing a workforce of 20 to 49 individuals have been granted a four-month window to onboard at least one Emirati employee if they have not already done so. These specific targets for smaller enterprises within the Emirates were unveiled in July, expanding the scope of the nation's Emiratisation initiative.
According to directives issued by the Ministry of Human Resources and Emiratisation, companies with over 20 but less than 50 employees are obligated to have one Emirati professional in their workforce by January 1, 2024. Subsequently, a second Emirati hire must be made by January 1, 2025.
This mandate encompasses privately-owned firms across a spectrum of 14 sectors, encompassing real estate, education, construction, and healthcare. Enterprises failing to meet these deadlines by January 1 will incur a fine of Dh96,000 ($26,000). Furthermore, businesses that do not employ two Emiratis by 2025 will face a steeper fine of Dh108,000.
Notably, prior to this announcement, Emiratisation rules exclusively applied to private companies employing 50 or more workers, with businesses operating within free zones being exempt.
It is worth noting that there has been no confirmation regarding whether the same exemption will be extended to companies employing between 20 and 49 individuals in free zones.
The sectors directly impacted by this ruling include:
- Information and communications
- Financial and insurance activities
- Property
- Professional and technical activities
- Administrative and support services
- Arts and entertainment
- Mining and quarrying
- Transformative industries
- Education
- Health care and social work
- Construction
- Wholesale and retail
- Transport and warehousing
- Hospitality and residency services
In recent developments, the UAE has publicly disclosed that over 500 companies have faced fines for violating Emiratisation regulations. The most recent data, released on Wednesday, indicates that the number of Emiratis employed in the private sector has risen to more than 81,000, up from 79,000 at the beginning of July. These Emirati workers are distributed among 17,000 companies.
Since June of the previous year, a total of 565 companies have been penalized for fraudulent Emiratisation practices, with an additional 129 companies fined since July. False Emiratisation activities encompass situations where family members are hired without legitimate roles or where employment records are falsified by obtaining counterfeit work permits under the names of UAE citizens.
The Ministry of Human Resources and Emiratisation has stated that penalized companies have received fines ranging from Dh20,000 to Dh100,000. Moreover, these companies are no longer eligible for financial benefits from the Emirati Talent Competitiveness Council program, which rewards firms for employing UAE citizens.
