UAE to Enforce Emiratisation Fines from July 1st

UAE authorities will assess private sector companies to ensure they have met their Emiratisation targets for the first half of 2024 starting July 1st. Companies with 50 or more employees that have not increased their Emirati workforce by 1% over the past six months will face fines.^[1]  

The Ministry of Human Resources and Emiratisation (MoHRE) confirmed June 30th as the deadline for meeting these targets. The fines for non-compliance are set at AED 8,000 ($2,178) per month for each Emirati not hired, increasing annually by AED 1,000 ($272.26) until 2026.

Private companies are required to raise the number of Emirati employees by 2% each year. By the end of June, companies should have 5% Emiratis on their payroll, increasing to 6% by the end of 2024. The federal law aims to achieve a 10% Emiratisation rate by the end of 2026.

Earlier this year, MoHRE expanded Emiratisation requirements to include companies with 20-49 employees. Over 12,000 companies in this category must hire at least one Emirati in 2024 and another in 2025.

MoHRE encourages companies to use the Nafis Programme’s digital platform, which connects them with qualified Emirati job seekers. As of May, over 97,000 Emiratis were employed in about 20,000 private companies, reflecting a 170% increase since the Nafis programme launched in September 2021.

Regular inspections will be conducted to ensure compliance, and violators will face fines from AED 20,000 ($5,445) to AED 100,000 ($27,226) per case. Companies found guilty of fake Emiratisation or other manipulative practices will also face penalties and possible downgrading within the MoHRE system.

Residents can report violations through the MoHRE app, website, or by calling 600590000.