In accordance with the relevant UAE Cabinet Resolution, the Ministry of Human Resources and Emiratization (MoHRE) urged businesses with more than 50 workers to accelerate reaching an Emiratization rate of 2% for skilled professions by the end of 2022. In order to increase their chances of meeting the needed rate before the deadline, MoHRE urged businesses to take advantage of the incentives offered for hiring UAE citizens through the NAFIS platform.
“Given the private sector’s significance in the UAE’s employment market, accomplishing the UAE’s objectives and directives requires combined efforts of government bodies and the private sector to strengthen the business environment and establish an investment climate that attracts firms, investors, entrepreneurs, and talents from all over the globe to work in the UAE, especially in the strategic priority sectors.”
MoHRE provides a package of incentives to private sector companies that meet the Emiratization target, including first category classification and membership in the Tawteen Partners Club within the establishments’ classification system, where members receive discounts of up to 80% on the ministry’s service fees.
Financial penalties, however, will be levied on enterprises that do not reach the statutory Emiratization rate – a monthly penalty of AED6,000 for each UAE national who has not been appointed, beginning in January 2023. The two percent Emiratization rate for this year is determined as one UAE national for every 50 non-Emiratis working in skilled employment. The goal of this decision is to enhance the Emiratization rate by 10% by 2026.
