The decision applies to more than 12,000 companies operating in 14 key economic sectors, including information and communications, finance and insurance, real estate, professional, scientific and technical activities, management and support services, education, health and social services, arts and entertainment, mining and quarrying, manufacturing, construction, wholesale and retail trade, transport and warehousing, and accommodation and hospitality – all sectors that are “currently experiencing rapid growth and have the capacity to provide jobs and decent working conditions,” the Ministry of Labour said.
The decision to expand the scope of companies eligible for Emiratization to those with 49 employees from 20 comes in tandem with ongoing efforts to achieve the Emiratization target for companies with 50 or more employees, which mandates a 2% annual growth in the skilled workforce, with a 10% increase by the end of 2026.
Companies that fail to meet the 2024 target will be subject to a financial penalty of 96,000 dirhams, which will be collected from January 2025. Meanwhile, companies that fail to meet the 2025 target will be subject to a financial penalty of 108,000 dirhams, which will be collected from January 2026.
The ministry issued a press statement stressing the need for companies included in the decision to continue employing Emirati employees hired by January 1, 2024, to ensure that all employed Emirati nationals are registered with the country’s pension and social security system, and to process their monthly salaries through the Wage Protection Scheme (WPS).
The MoHRE encourages companies to take advantage of the support offered by the Nafis programme, which provides access to a wide range of qualified Emirati professionals ready to take up positions in various economic sectors. By registering on the Nafis platform and posting job ads, companies can not only achieve their Emiratisation goal, but also become more competitive and expand their business, given that their bids will be prioritised on government procurement platforms.
The Ministry also reaffirmed its commitment to provide the necessary support to enable eligible companies to meet this year’s requirements through workshops designed to raise awareness on how to comply with the Emiratization decisions and policies to employ Emirati nationals, as well as the benefits that can be gained from complying with them.
The ministry also warned that companies that resort to false Emiratisation practices risk facing heavy fines and administrative sanctions.