Now, the UAE government is clamping down on companies in the private sector to hire more local citizens. For a company with no experience in “Emiratisation,” it might be challenging to navigate. There are requirements and strategies you need to take note of so your company doesn’t get penalized and gain the benefits attached to the scheme.

Emiratisation is a governmental policy that aims to reduce unemployment among Emiratis in the workforce, especially in the private sector. The UAE government provides several programs to incentivize hiring Emiratis. This article explores how to navigate Emiratisation as an employer and the requirements you need to know.

Overview of Emiratisation and Its Objectives

The UAE has tons of oil and gas, which offers the region an economic boost. Over the years, this boost has attracted millions of expatriates to the UAE. The inflow of expatriates further went on to boost the country’s economy. However, with more inflow, expatriates started to dominate the workforce.

As of 2004, the expatriates comprised about 80% of the private sector workforce. By 2009, this percentage jumped to 99.57%. Hence, only 13,000 of the 3 million private sector employees were Emiratis. Other Emiratis had to source for spots in the public sector.

This situation led the UAE government to prevent local citizens from being isolated in the private sector. The initiative led to the creation of Emiratisation—the scheme aimed to ensure that local citizens had jobs and, ultimately, higher living standards. As a result, the workforce is more diverse.

Objectives of Emiratisation

Emiratisation is a well-thought-out plan by the UAE government to offer Emirati recognition in the workforce. Here are the objectives of Emiratisation and what the government aims to achieve by putting the scheme in place:

• Increase the number of Emiratis’ workforce to ensure local citizens are not isolated in the private sector.
• Decrease the dependency on expatriates. Hence, the local citizens are just as resourceful as the expatriates.
• Ensure that the Emiratis engage in meaningful work to have a fair chance to develop their skills.
• Enable Emiratis to contribute to the nation’s economy and prevent over-dependence on expatriates to grow the economy.
• Ensure a balanced and more diverse workforce to prevent a particular nationality from dominating.

Essential Emiratisation Requirements for UAE Employers

Emiratisation started in the 1990s; however, the policy has experienced several reforms. As of 2024, there have been several changes. The MoHRE (Ministry of Human Resources and Emiratisation) has expanded the companies required to participate in Emiratisation. Now, over 12,000 companies with 20-49 employees across 14 industries are required to employ at least one local citizen in 2024 and another in 2025. That said, here are the new essential Emiratisation requirements:

Sector-Specific Emiratisation Quotas and Targets

Every employer has a required quota and target to meet regarding Emiratisation. The Cabinet has approved the requirement for local citizens in the workforce for companies with 50 or more employees to 2 percent annually. As mentioned, companies with 20-49 employees must employ at least one local citizen in 2024. As of 2025, the quota jumps to at least two local citizens.

This requirement applies to companies in the following 14 sectors. Here are the industries:

• Information and communications
• Financial and insurance activities
• Real estate activities
• Professional, scientific, and technical activities
• Administrative and support services
• Education
• Healthcare and social work activities
• Arts and Entertainment
• Mining and quarrying industry
• Manufacturing
• Construction
• Wholesale and retail trade
• Transportation and warehousing
• Hospitality
• Services

Emiratisation Points System and Tiers

There are incentives to encourage companies to meet the emiratisation quota. Companies accumulate points when they hire, train, and retain Emirati talents. These points can be redeemed for fewer government fees and sponsorships for specific events. Moreover, companies are categorized into three tiered levels. Each level has different perks and benefits attached to them.

Reporting and Compliance Obligations

When hiring Emiratis, employers must provide them with appropriate workplaces and tools and minimum on-the-job training to enable them to perform their duties. Additionally, they must:

• Get a work permit for the Emirati employee from MoHRE
• Finalize the employment contract of the intended employee
• Pay the salary per the Wages Protection System (WPS)
• Register the Emirati in the pensions and social security system and start contributing to it within a month of the date of issuance of her work permit.
• Report amendments to the employment contract affecting the Nafis program eligibility requirements.

Penalties for Non-Compliance

The UAE government is firm about ensuring that companies follow the Emiratisation initiative. Hence, penalties abound once a company fails to adhere to the regulation. The penalty depends on the company’s size. Companies with 50+ employees will be forced to pay AED6,000 monthly, increasing by AED1,000 by 2025. Companies with 20-49 employees who don’t comply with the Emiratisation initiative will pay AED96,000 annually. This amount increases to AED108,000 in 2025 if the company fails to employ at least two local citizens 2025.

 

Strategies for Meeting Emiratisation Requirements

Several perks are up for grabs when you meet the Emiratisation requirements. So, what strategies can you use to meet the requirements? 

• • Attracting and Recruiting Emirati Talent: Employers must attract and recruit Emirati talents to reap the benefits. Leverage career fairs, platforms like LinkedIn, and social media to attract Emirati talents. Also, use sumptuous packages and offers to appeal to skilled Emirati talents. 

• • Developing and Retaining Emirati Employees: Besides employing new Emirati talents, retaining existing employees is important. Invest in developing Emirati employees so they remain relevant to the company. 

• • Collaborating with Educational Institutions and Government Entities: Work closely with educational institutions to access exceptional Emirati talents as they enter the job market. Also, close ties with government entities should be maintained to ensure the most current information regarding the requirements. 

• • Aligning Emiratisation with Business Goals and Needs: Aligning Emiratisation with your business needs is a great way to benefit from the scheme. Look for business positions that need the input of Emirati employees. For example, it can be marketing. You may need an employee who knows the country well enough to sell it to its citizens. 

Best Practices for Managing Emiratisation in UAE Organizations

Here are the practical steps you can take to manage Emiratisation in UAE organizations: 

• • Conducting Workforce Planning and Gap Analysis: To meet Emiratisation requirements, employers must plan and undergo gap analysis. Gap analysis compares the company’s current workforce and its skills with the required workforce and skills. This way, employers know the gap and can then plan to fill it. 

• • Establishing Emiratisation Governance and Accountability: Forge a system with members dedicated to emiratisation. Set actionable goals alongside a step-by-step process for achieving them. 

• • Providing Cultural Awareness and Sensitivity Training: To prepare employees for the new change, teach them about the Emirati culture. This training will facilitate mutual respect and understanding. 

• • Measuring and Reporting Emiratisation Progress: Note the progress and state of Emiratisation at every milestone. Use this information to reinforce strategies. 

Common Challenges and Solutions in Emiratisation Compliance

Emiratisation can be daunting. There are several processes involved, as well as penalties for non-compliance. Here are common problems and how to solve them: 

• • Hiring Top Emirati Talents: Leverage career fairs, social media, and referrals. Set up a dedicated team for Emiratisation to handle the process. 

• • Maintaining a Cross-cultural Workforce: Host sensitivity training to teach employees about the culture to inspire respect and understanding. 

• • Filling the Required quotas: Follow up on the hiring process and apply pressure when necessary.  

Dealing with all the challenges of complying with Emiratisation laws can be tricky. The solutions provided here are just a few of many that employers need to be aware of when dealing with this tricky slope. Thankfully, top UAE HR companies like Bayzat are always on hand to guide and help businesses comply with Emiratisation requirements. This company is versed in UAE labour laws and will help you meet all Emiratisation demands while aligning with your company’s long-term goal. Place a call or send an email today to request a quote.

Frequently Asked Questions

How many UAE local citizens do you need to hire for your organization?

It depends on the size of your company. You will need to hire one Emirati employee for every 50 employees. Companies with less than 50 skilled workers need to employ at least 1 Emirati citizen. For companies with 51-100 employees, two or more Emirati employees. If you have 101-150 skilled workers, employ 3 or Emirati employees. Companies with more than 150 need to hire one Emirati employee for every 50 or fewer workers. 

What are the fines if you do not meet the Emiratisation quota?

The monthly fee is 8,000 AED per month as of 2024. But the amount increases every year by 1,000 AED. The yearly fee is the monthly fee multiplied by the number of months. 

What Industries Are Affected by the Emiratisation Law? 

There are about 14 sectors that are subject to the new Emiratisation Law. These industries include information and communications, real estate, financial activities, education, healthcare, and more. Check 14 sectors to see if your industry is affected by the new Emiratisation law.