Emiratisation Requirements - A Guide for UAE Employers

Emiratisation is an initiative by the government of the United Arab Emirates to employ its citizens in an efficient manner in the public and private sectors. The UAE government offers various programs designed to encourage the employment of Emiratis. This article examines how employers can effectively navigate Emiratisation and outlines the necessary requirements to be aware of.

Currently, the UAE government is enforcing stricter regulations on private sector companies to increase the hiring of local citizens. For organizations lacking experience in 'Emiratisation,' this process may prove to be quite difficult. It is essential to be aware of the requirements and strategies necessary to ensure that your company avoids penalties and reaps the advantages associated with the initiative.

Emiratisation Objectives

Emiratisation is a carefully planned strategy by the UAE government designed to grant Emiratis recognition in the employment sector. The subsequent points detail the aims of Emiratisation and the aspirations the government hopes to realize through the establishment of this initiative:

• Boost the participation of Emiratis in the workforce to prevent local citizens from being isolated in the private sector.
• Reduce dependency on expatriates. Therefore, local citizens possess equal resourcefulness as expatriates.
• Ensuring that Emiratis take part in valuable work is vital for giving them a just opportunity to enhance their skills.

Emiratisation Criteria for UAE Employers

Emiratisation was initiated in the 1990s; nonetheless, the policy has undergone several reforms. As of 2025, there have been a number of changes. The MoHRE (Ministry of Human Resources and Emiratisation) has extended the list of companies that are required to take part in Emiratisation. Now, more than 16,000 companies with 20-49 employees across 14 industries must hire at least two local citizens. Therefore, the following are the new vital Emiratisation requirements:

Sector-Specific Emiratisation Quotas and Targets

Each employer is required to meet a specific quota and target in relation to Emiratisation. The Cabinet has approved the mandate that companies with 50 or more employees must employ 2 percent local citizens annually. Moreover, it has been indicated that companies with 20 to 49 employees are to hire a minimum of two local citizens as of 2025.

This requirement applies to companies in the following 14 sectors. Here are those industries:

• Administrative and support services
• Arts and Entertainment
• Construction
• Financial and insurance activities
• Healthcare and social work activities
• Hospitality
• Information and communications
• Manufacturing
• Mining and quarrying industry
• Professional, scientific, and technical activities
• Real estate activities
• Services
• Transportation and warehousing
• Wholesale and retail trade

Emiratisation Benefits and Points System

There are various incentives designed to encourage companies to achieve the emiratisation quota. Companies gather points through the hiring, training, and retention of Emirati talents. These points can be utilized for reduced government fees and sponsorships for certain events. In addition, companies are organized into three levels, each with its own set of perks and benefits.

Compliance Obligations and Reporting

When employing Emiratis, it is essential for employers to furnish them with suitable work environments and necessary tools, as well as a minimum level of on-the-job training to facilitate their ability to fulfill their responsibilities. Furthermore, they are required to:

• Obtain a work permit for the Emirati employee from MoHRE.
• Complete the employment contract for the prospective employee.
• Pay the salary through the Wages Protection System (WPS).
• Register the Emirati in the pension and social security system and initiate contributions within a month following the issuance date of the work permit.
• Notify any changes to the employment contract that impact the eligibility criteria for the Nafis program.

Penalties for Non-Compliance to Emiratisation

The UAE government is determined to ensure that companies adhere to the Emiratisation initiative. Therefore, there are penalties in place for those that do not comply with the regulation. The penalties vary based on the size of the company. Companies with more than 50 employees will be required to pay AED 6,000 per month, which increases by AED 1,000 in 2025. For companies with 20 to 49 employees, failure to comply with the Emiratisation initiative will result in an annual penalty of AED 96,000. This amount rises to AED 108,000 in 2025 if the company does not hire at least two local citizens by that year.

How to Meet Emiratisation Requirements?

Enticing and Recruiting Emirati Talent: It is essential for employers to attract and recruit Emirati talents to enjoy the benefits. Make use of career fairs, platforms like LinkedIn, and social media to engage Emirati talents. Furthermore, provide appealing packages and offers to attract skilled Emirati talents.

Retain Emirati Employees: In addition to hiring new Emirati talents, it is crucial to retain current employees. Investing in the development of Emirati staff ensures their continued relevance to the organization.

Align Emiratisation with Business Growth: Aligning Emiratisation with your organizational requirements presents an excellent opportunity to leverage the scheme. Identify business roles that would benefit from the contributions of Emirati employees. For instance, marketing could be one such area. You might require an employee who possesses a deep understanding of the country to effectively promote it with his influence to its citizens.

Conclusion of Emiratisation Compliance

In conclusion, Emiratisation compliance is a legal obligation and a strategic opportunity for businesses in Dubai International City to foster a diverse and sustainable workforce, while also aligning with the UAE's national vision. By actively participating in Emiratisation initiatives, businesses can build a more inclusive workplace, potentially attract government contracts, and enhance their corporate reputation. Moreover, understanding and complying with Emiratisation requirements is crucial for avoiding penalties and ensuring long-term success in the UAE market

Addressing the numerous challenges of complying with Emiratisation regulations can be quite complicated. Fortunately, esteemed UAE HR software companies such as DelicateSoft is always prepared to help businesses in adhering to Emiratisation standards and handling all other HR management tasks. Do not hesitate to call or email today to ask for a quote.