Emiratisation explained: 5 Essential Insights You Can’t Miss

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August 12, 2023

Emirati

1. What are the recent Emiratisation Regulations in the Private Sector?

New Emiratisations rule for small enterprises operating in the UAE were released by the Ministry of Human Resources and Emiratisation (MOHRE) of the UAE in July 2023. By 2024 and 2025, companies with 20 to 49 employees in the UAE private sector must hire at least one UAE citizen.

Previously, the country’s established Emiratisation rule in UAE applied primarily to businesses with 50 or more employees.

2. To which various sectors does this Rule apply?

To the following (14) different sectors it applies:

  • Information and communications
  • Financial and insurance activities
  • Real estate
  • Professional and technical activities
  • Administrative and support services
  • Arts and entertainment
  • Mining and quarrying
  • Transformative industries
  • Education
  • Healthcare and social work
  • Construction
  • Wholesale and retail
  • Transportation and warehousing
  • Hospitality and residency services

3. What penalties are there for non-compliance?

AED 96,000 in fines could be assessed if the new Emiratisation regulations are not followed. For businesses that have not hired two UAE citizens by 2025, the fine would rise to AED 108,000.

4. This Significant development comes under which program?

NAFIS is part of a comprehensive federal government initiative that aims to forge an alliance between the private and public sectors to ensure that Emirati citizens have equal opportunity for job opportunities.

5. What do we recommend?

We advise our clients to join up for the UAE Government’s “Nafis” cooperation program and learn more about the programs that are available to help them identify qualified Emirati candidates for employment.

If you want to setup a Business in Dubai UAE with a expert assistance following all rules and regulations we are here to help you.

Source: The United Arab Emirates Government Portal

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