The Ministry of Human Resources and Emiratization (MoHRE) in the UAE has called on private sector firms with 20 to 49 employees to expedite their recruitment of at least one Emirati citizen this year, advising against postponing efforts until the end of the grace period that concludes in late 2024.
This initiative follows a Cabinet decision to broaden Emiratization requirements, mandating these companies to employ at least one UAE national by 2025 as well.
Impact on key economic sectors
The measure impacts over 12,000 businesses across 14 crucial economic sectors, including information and communication, finance and insurance, real estate, professional and scientific services, administrative support, education, health and social services, arts and entertainment, mining, manufacturing, construction, wholesale and retail trade, transportation, and hospitality. These industries are rapidly expanding and have the potential to offer jobs and a conducive working environment.
Financial penalties for non-compliance
Firms that fail to meet their 2024 hiring targets will incur financial penalties of AED96,000, starting in January 2025. Those not meeting the 2025 requirements will face increased contributions of AED108,000, to be collected from January 2026.
Retaining Emirati talent
In a recent press release, the Ministry highlighted the importance of retaining Emirati employees hired before January 1, 2024, ensuring all UAE nationals are registered in the national pension and social security systems, and processing their monthly wages through the Wage Protection System (WPS).
Support through the Nafis program
MoHRE also encouraged businesses to leverage the support available through the Nafis program, which connects them with a pool of qualified Emirati professionals ready to fill roles in various sectors. By signing up on the Nafis platform to post job openings, companies can achieve their Emiratization goals while boosting their competitiveness, as their bids receive priority on the government procurement platform.
The Ministry reiterated its commitment to assisting targeted companies through workshops designed to raise awareness about the benefits of hiring Emirati citizens and compliance with Emiratization policies.
Warning against ‘fake Emiratization’
Additionally, the Ministry cautioned against engaging in “Fake Emiratization” practices, which could result in severe financial penalties and administrative repercussions.
The expansion of Emiratization requirements to include companies with 20 to 49 employees aligns with ongoing initiatives to meet targets for businesses with 50 or more workers, which are obligated to achieve a 2 percent annual increase in skilled job creation, culminating in a 10 percent rise by the end of 2026.
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