UAE Announces New 2023 Emiratisation Deadlines

The United Arab Emirates had set the target for Emiratisation for 2023 in the country at 2 percent for private companies in the country that have 50 employees or more.

Now, the latest amendment to the target by the UAE cabinet further splits this annual target throughout the year 2023. As part of the new move, private firms that come under the 2023 Emiratisation target have to ensure that 1 percent of their workforce are Emirati nationals within the first half of 2023. Moreover, another 1 percent of Emirati nationals must be hired within the second half of the year.

Companies that Fail to Meet Half-Yearly Emiratisation Goals to be Fined

This ensures that private firms that have more than 50 employees meet their Emiratisation goals for the year by the end of this year. Also, this helps to overcome any attempts to fraud the Emiratisation laws set by the UAE government.

Private companies that fail to achieve their half-yearly goals will also be penalized. Earlier, it was announced that companies that do not meet the Emiratisation goal of 2023 will have to face penalties imposed on them. However, as the target is now further split into half-yearly goals, penalties will be imposed if companies fail to achieve them.

The Emiratisation laws in the country aim to provide employment for Emirati men and women within the private sector companies in the country. There are lots of private companies that run across all the emirates in the country, however, the rate of Emirati workforce within them is quite low. In fact, most Emirati men and women prefer employment within government-sector entities due to the benefits and job security they offer.

Emiratisation in the country is upheld under the “Nafis” program, which was launched under the “Projects of the 50” initiative back in September 2021. The goal of the program is to ensure that adequate support is offered to Emirati nationals interested in pursuing careers within the private sector in the country.

The aim is to create at least 75,000 jobs for Emirati men and women within the private sector by the year 2025. Apart from ensuring that the private companies in the country provide equal opportunities to Emirati nationals, the program also has other initiatives under it to ensure that the Emirati workforce is indeed skilled and competitive to function in the private sector.

For instance, there are career counseling and apprentice programs under Nafis, that ensure that the men and women of the country receive proper career advice and training. Moreover, there will be a dedicated recruitment portal for Emirati nationals which will give them better exposure to job opportunities within private companies.

There are also several financial aids provided to the Emirati workforce employed in the private sector, including:

• Salary support of up to AED5,000 per month for five years people who are already in employment, and up to AED8,000 per month for fresh graduates for the first year of their employment. The actual amount will defer depending on the monthly salary that the individual earns from their employment at the private firm.
• Contribution to the individual’s pension plan will be made by the government for newly employed Emirati nations for the initial five years of their employment, provided they earn less than AED20,000 per month.
• Child allowances are up to AED800 per child for up to four children. The allowances can be claimed on children until they reach 21 years of age and will be linked to the salary of the employee claiming the allowance.
• Unemployment benefits include financial support and re-employment assistance in case Emirati national loses their job at a private firm due to reasons that are beyond their control. The assistance will be provided for a maximum duration of six months, provided that the individual does not deny any employment opportunity that comes across them during this period.

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Since the implementation of the Emiratisation rules under Nafis in 2021, over 28,000 Emirati men and women have joined the private sector companies in the country and over 30,000 nationals have benefited from the financial aid under Nafis.

By the year 2026, authorities want to ensure that 10 percent of the employees working in private sector companies within the UAE are Emirati nationals.

The current two percent Emiratisation target set for 2023 will double annually for the upcoming years until the current target is met by 2026. Moreover, the monthly penalties for companies that fail to follow the Emiratisation rules will also increase at a rate of AED1,000 per year until 2026.

Currently, private firms that fail to meet the Emiratisation goals are fined AED8,000 per month (AED84,000 per year). Now, with the new half-yearly target amendment, companies will also have to ensure that the Emiratisation target for the first six months and the next six months are met, to ensure that they don’t have to pay penalties associated with missing the target.