Mandatory Emiratisation in UAE: Dh84,000 fine for private firms failing to meet new targets in 2023

The fine imposed on companies for not meeting this year’s Emiratisation targets will be increased, a UAE minister has confirmed.

Addressing a media briefing on Thursday, Dr Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, said the annual fine would be Dh84,000 — up from Dh72,000 that was imposed on companies that failed to meet last year’s targets.

By the end of this year, companies with 50 skilled employees or more are required to have 4 per cent Emiratis on their workforce. The Dh84,000 fine will be imposed on companies for each Emirati that has not been hired. Dr Al Awar also said that the fine will be subject to an incremental increase every year.

It was announced on Wednesday that the Ministry of Human Resources and Emiratisation (Mohre) had issued fines amounting to Dh400 million against private companies that failed to meet Emiratisation targets for 2022. About 9,293 companies achieved the target — which was to have 2 per cent Emiratis in skilled roles.

“Our goal is to support the private sector. We have Dh1.25 billion dedicated to training Emirati calibre in the private sector. We are supporting the private sector by dedicating this budget for training in addition to supporting their salaries,” said Ghannam Al Mazrouei, secretary-general of the Emirati Talent Competitiveness Council (ETCC).

Recognition planned for firms that exceeded targets

The Emiratis in the private sector work mainly in clerical jobs and other jobs related to scientific, technical and humanitarian fields in addition to service and sales professions. They also serve as specialists, legislators and managers. Many of UAE citizens also work in various vital sectors including financial intermediation, business services, manufacturing industries, construction, trade and repair services

Meanwhile, Dr Al Awar said more than 7,000 companies have hired Emiratis for the first time. “There are companies that have exceeded their Emiratisation targets and we are planning to honour them.”

Al Mazrouei also said that 76 per cent of those hired through the Nafis programme have never worked in the private sector. By 2023, 24,000 jobs are expected to be filled through the scheme, he added.

Speaking about the programme, Dr Al Awar said the decisions that were taken are based on studies and projections of the job market. The government, he stressed, seeks to be a partner of the private sector.

“I hope the companies understand that economically, it is more beneficial for them to support the programme,” he said.

In addition, since its launch, Nafis signed 24 agreements with strategic partners, including six partnerships with universities as part of the National Healthcare Programme, and four agreements with strategic partners in the semi-governmental sector in a pledge to provide more than 11,000 jobs through outsourcing companies and suppliers.