Hire Emiratis or face $29,000 fines, government warns
Private sector firms in the UAE are being warned by the government that if they don’t hire Emirati workers they face fines of up to $29,000.
The Ministry of Human Resources and Emiratisation (MoHRE) – which is looking to expand the Emiratisation scheme to larger industry base – has urged private sector companies employing 20 to 49 workers to accelerate efforts to hire at least one Emirati citizen this year. It is advising them against waiting until the end of the grace period, which closes at the end of 2024.
This follows the Cabinet’s decision to expand the scope of Emiratisation, requiring these companies to hire at least one UAE citizen in 2025 as well.
The decision affects more than 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
- Accommodation and hospitality
The ministry said these sectors are experiencing rapid growth and have the capacity to provide jobs and a suitable working environment.
Under the new rules, companies in the UAE that do not meet their 2024 targets will face penalties of AED96,000 ($26,100), which will be levied in January 2025.
Failure to meet the 2025 targets will result in contributions of AED108,000 ($29,400), collected from January 2026.
The Ministry emphasised the need for companies included in the decision to retain Emirati employees hired before 1 January 1 2024, ensure all employed UAE citizens are registered in the country’s pension and social security systems, and process their monthly salaries through the Wage Protection System (WPS).
MoHRE is encouraging businesses to benefit from the support offered by the Nafis programme, which provides access to a pool of qualified Emirati professionals ready to fill positions across various sectors.
It said that by registering on the Nafis platform to advertise job vacancies, companies can meet their Emiratisation targets while enhancing their competitiveness, as their bids will be prioritised on the government procurement platform.
The Ministry also reaffirmed its commitment to providing support to targeted companies through workshops aimed at raising awareness about hiring Emirati citizens, in compliance with Emiratisation decisions and policies, and the benefits of adhering to them.
Additionally, the Ministry warned companies against engaging in ‘fake Emiratisation’ practices, which could lead to strict financial penalties and other sanctions.
The decision to expand the scope of companies targeted for Emiratisation to those employing 20 to 49 workers aligns with ongoing efforts to achieve targets for companies employing 50 or more workers, which are required to achieve a 2% annual growth in skilled jobs, leading to a 10% increase by the end of 2026.
Economy to grow by 4.8% next year
The UAE economy is set to grow by 4.8% in 2025, according to Scott Livermore, Chief Economist and Managing Director of Oxford Economics Middle East.
He added that non-oil sectors, mainly travel and tourism, will continue to grow strongly, with visitors to Dubai and traffic through Dubai International Airport reaching record levels.
Livermore said: “We expect visitor numbers to continue to expand strongly, growing by over 20% this year and achieving double-digit growth again next.”
He added that the country has weathered economic challenges – especially high interest rates – due to significant government support as growth and diversification plans are implemented.
He said: “Investment activity is expected to be strong in the UAE as plans around ‘We the UAE 2031’, D33 in Dubai, and other strategies are implemented.”
He also emphasised that the UAE is increasing its attractiveness to foreign investors and talent through schemes such as allowing 100% foreign ownership of onshore companies and lowering costs to establish businesses, which have contributed to population growth and bolstered the real estate market.
He noted that policymakers also focus on innovative and emerging sectors across finance, creative industries, manufacturing, and other sectors.
