UAE: Global Mobility

Below is a summary of the recent Emiratization requirement developments for UAE employers.

Existing :

2% Emiratization requirement started in 2022 for private sector establishments with over 50 employees and annual increase by 2% up to 10% by 2026.

Update in 2024:

1.    Emiratization requirement will extend to private sector establishme0nts with 20 to 49 employees in certain economic activities.

2.    The target requires these establishments to hire at least one UAE citizen in 2024 and another in 2025.

3.    Non-compliance with the above requirements will result in a contribution of:

-        AED 96,000 in Jan 2025 for violations in 2024, and

-        AED 108,000 in Jan 2026 for violations in 2025.

Additional Penalties Introduced

The MOHRE  has imposed penalties on private companies found to be fraudulently evading Emiratization targets.

1.    Description

Establishments reducing the no. of workers or modifying their classifications to circumvent the Emiratization targets, or any other fraud proven by MOHRE.

-        1^st Violation                    : AED 100,000

-        2^nd Violation                   : AED 300,000

-        3^rd Violation onwards    : AED 500,000
  

Key Takeaways

• Employers shall assess the applicability of this new development to their establishment.
• When applicable, employers should, proactively, familiarize themselves with the official channels  and procedures of employing UAE Nationals.