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UAE private sector companies must increase Emirati staff by 1% every six months

The new mechanism does not amend the annual targets, which require companies with 50 employees or more to achieve a 2 per cent increase in Emiratisation by end of the year

by Zainab Mansoor

February 9, 2023

Private sector companies operating in the UAE will now be required to increase Emiratisation in skilled jobs by 1 per cent every six months.

The Ministry of Human Resources and Emiratisation (MoHRE) announced amendments to the mechanism of achieving Emiratisation targets in private sector companies with a workforce of 50 or more. These were in line with the amendments of the provisions of Cabinet Resolution No. 5/19 for 2022.

“This step aims to maintain employment and retention rates of Emiratis in the private sector at a time where we witnessed a 70 per cent increase of Emiratis working in the private sector in 2022, compared to 2021,” said Dr Abdulrahman Al Awar, Minister of Human Resources and Emiratisation.

The minister added that new mechanism does not amend the annual targets but only stipulates that companies with 50 employees or more are required to achieve a 1 per cent increase in Emiratisation before the end of June 2023, and reach the targeted 2 per cent by end of the year.

A UAE Cabinet resolution on modifying the mechanism for achieving Emiratisation targets at private sector companies with more than 50 employees came into force. What is highlighted in this resolution? pic.twitter.com/Chu0VCU0aR

— وزارة الموارد البشرية والتوطين (@MOHRE_UAE) February 7, 2023

The amendments do not include any additional commitments on the companies, nor any amendments to the amounts of financial contributions imposed for non-compliance.

However, these contributions will now be collected semi-annually, encouraging the private sector to continuously employ Emiratis to meet their targets, instead of waiting until the end of the year, official news agency WAM reported.

“The private sector has proven itself as a credible partner, and we are confident that the new amendments will reflect positively on the existing cooperation,” Dr Al Awar added.

The financial contributions on companies that do not meet the target for the first half of 2023 will begin in July 2023, and the contributions for non-compliance from 2022 will continue to be collected.

Read: UAE’s MoHRE fines companies failing to achieve Emiratisation targets for 2022