UAE: New incentive announced for companies that meet Emiratisation targets

Companies that meet Emiratisation targets will now be prioritised in bidding for government procurement contracts, it was announced on Thursday.

The Ministry of Human Resources and Emiratisation (Mohre) and the Ministry of Finance (MOF) said the new initiative comes as part of efforts to ensure the success of the Emiratisation drive in the private sector.

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"Granting priority to companies committed to achieving Emiratisation targets in the government procurement system is a form of support and an incentive for them," said Younis Al Khoori, undersecretary of the MOF.

Private companies with 50 employees or more are required to add two per cent Emiratis to their workforce every year until 2026. The annual target had been split into two: Add 1 per cent in the first half of the year and the other 1 per cent in the second.

Since its rollout, the Emiratisation scheme is strictly being implemented in the country, with violators facing hefty fines. Earlier this month, Mohre said nearly 900 companies were caught skirting the rules within a six-month period, with more than 100 referred to the public prosecution.

“The launch of this new benefit .. reflects the shared vision and responsibility among government entities to support the Emiratisation process," said Ayesha Belharfia, undersecretary for Emiratisation affairs at Mohre.

List of benefits

The new incentive complements other benefits for compliant companies, which include:

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