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Dh96,000 fine: UAE private firms reminded of Emiratisation target deadline

Ministry cautioned companies against 'faking Emiratisation', which would expose them to strict financial penalties and administrative sanctions

Published: Mon 23 Sep 2024, 1:52 PM

Updated: Wed 9 Oct 2024, 1:53 PM

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Private sector companies in the UAE employing 20 to 49 workers are reminded to hire at least one Emirati before the final deadline on December 31. The Ministry of Human Resources and Emiratisation (Mohre) advised companies against delaying until the end of the grace period, which concludes at the end of 2024.

Financial penalties of Dh96,000 will be imposed on companies that do not meet their 2024 targets, which will be collected starting January 2025, while fines amounting to Dh108,000 will be imposed for failure to meet 2025 targets, to be collected as of January 2026.

The Ministry further cautioned companies against resorting to ‘fake emiratisation’ practices, which would expose them to strict financial penalties and administrative sanctions.

Participating in false Emiratisation practices will result in administrative fines ranging from Dh20,000 to Dh100,000 for each instance, depending on the number of offences. Additionally, circumventing Emiratisation targets will lead to fines ranging from Dh100,000 to Dh500,000.

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The Ministry issued a press statement emphasising the need for the companies included in the decision to retain Emirati employees hired before 1 January 2024, ensure that all employed UAE citizens are registered in the country’s pension and social security systems, and to process their monthly salaries through the Wage Protection System (WPS).

This follows the Cabinet’s decision to expand the scope of companies targeted for Emiratisation, in addition to recruiting at least one UAE citizen in 2025.

The decision applies to over 12,000 companies operating across 14 key economic sectors, including information and communication; finance and insurance; real estate; professional, scientific, and technological activities; administrative and support services; education; health and social work; arts and entertainment; mining and quarrying; manufacturing; construction; wholesale and retail trade; transportation and warehousing; and accommodation and hospitality – all of which are sectors that are currently undergoing rapid growth and have the capacity to provide jobs and a suitable working environment.

Mohre encouraged companies to benefit from the support offered by the Nafis programme, which provides access to a wide pool of qualified Emirati professionals ready to fill positions across various economic sectors. By registering on the Nafis platform to advertise their job vacancies, companies can not only meet their Emiratisation targets, but also enhance their competitiveness and expand their business, considering their bids will be prioritised on the government procurement platform.

The Ministry also affirmed its commitment to providing the necessary support to targeted companies, enabling them to meet their requirements for the year through workshops designed to raise awareness about how to hire Emirati citizens, in compliance with Emiratisation decisions and policies, and the benefits to be gained from adhering to them.

The decision to expand the scope of Emiratisation to include companies with 20 to 49 employees aligns with ongoing efforts to meet targets for companies with 50 or more workers. These larger firms are required to achieve a 2% annual increase in skilled jobs, aiming for a total 10% growth by the end of 2026.

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