Hire Emirati workers or face fines, UAE warns businesses
Private sector companies with 50 employees or more have meet their Emiratisation targets or face sanctions, the UAE’s Ministry of Human Resources and Emiratisation (MoHRE) is warning.
MoHRE listed five important factors related to Emiratisation targets that were amended at the start of this year.
“The beginning of 2023 marked a fresh start to achieve annual growth rates for Emiratisation at companies with 50 employees or more. The amendment aims to maintain Emiratis’ employment and retention rates in the private sector to reach 10 percent growth by the end of 2026,” the ministry said in a Twitter post.
In its five-point reminder, MoHRE also said that:
- Compliance is monitored twice a year (with 1% Emiratisation growth expected every six months).
- Increase in nationalisation rates remains 2% annually.
- No further obligations are required.
- Fines for non-compliant establishments remains unchanged.
- Fines will be collected twice a year.
Last month MoHRE also sent a reminder to companies reminding them they have less than four months to achieve the new targets or face fines. Private companies in the UAE now have less than three months to comply with these nationalisation targets.
A MoHRE Twitter message said: “A UAE Cabinet resolution on modifying the mechanism for achieving Emiratisation targets at private sector companies with 50 employees or more came into force.”
It added: “The overall mechanism for achieving the targeted Emiratisation rates has not changed; it became semi-annual instead of annual. Companies with 50 employees or more are required to achieve an increase of 1 percent of skilled jobs every 6 months and reach a growth rate of 2 percent by the end of the year.
“The annual 2 percent Emiratisation growth for skilled jobs in 2022 for private sector companies and the 10 percent goal for 2026 have not been changed in this resolution.
“The resolution aims to accelerate achieving Emiratisation targets and employing UAE nationals in the private sector throughout the year.
The ministry warned that firms that fail to meet the targets will be fined at a rate of AED6,000 (£1,300) a month, or AED72,000 a year, with the fine to be paid in a single instalment.
The size of the monthly fines for private sector entities will increase by AED1,000 until the year 2026.
The MoHRE statement added: “The resolution plays a significant role in enhancing the workforce planning without overlapping with the Emiratisation targets as there will be no new or additional commitments on companies.
“Financial contributions will start to be applied in July 2023, as well as the remaining contributions from 2022.”
The ministry provides a package of incentives for organisations that improve their training programmes for UAE citizens to meet the criteria and objectives set out in the ‘Nafis’ programme, including joining the Emiratisation Partners Club, which will entitle them to up to 80% discounts for the ministry’s services.
Dubai is world’s favourite destination
Dubai has been named the world’s top destination in Tripadvisor’s 2023 Travellers’ Choice ‘Best of the Best’ Awards for the second year in a row.
The emirate received the number-one rating based on reviews and ratings by users of the travel website and collated over the past year. Dubai beat popular destinations including London, Marrakech, Bali and Paris.
Dubai received the recognition due to the city’s outstanding tourism industry and its vast experiences it offers to visitors from all over the world.
This year’s winners were selected based on the quality and quantity of ratings from travellers for accommodation, restaurants and things to do in destinations worldwide between November 2021 and October 2022.
“The top ranking by global travellers reflects the vision of the leadership to transform Dubai into the world’s top destination for tourism and business, as embodied by a key goal of the Dubai Economic Agenda D33,” said Sheikh Hamdan bin Mohammed, Crown Prince of Dubai.
“The Agenda’s objective of consolidating Dubai’s status as one of the world’s top three cities for tourism and business signifies the leadership’s determination to mark Dubai out as a clear leader not only as a leisure and lifestyle destination but also as a hub for connectivity, commerce and investment.”
